Tax Strategy

As is consistent with our wider approach, we operate risk management, compliance and governance processes in relation to all tax matters. This is overseen by our Audit, Risk and Finance Committee (ARFC) which is a sub-committee of the Board of Governors. We retain professional advisers to support us in complying with our tax obligations. Emerging issues concerning tax management and developments in tax relevant to the Group, including any areas of uncertainty, are presented to and considered by each of the quarterly ARFC meetings as those issues arise.

The Finance Director receives regular briefings on tax matters from the Finance function, including briefings from external specialists. Tax matters are reported to the ARFC whose membership of Non-Executive Directors ensures appropriate scrutiny and transparency at the Board on key tax matters and that decisions made are consistent with the strategic principles set out above.

Day to day management of employment taxes is the responsibility of the Human Resources (HR) function. The Head of Human Resources is responsible for ensuring that the necessary skills and experience are available to deliver effective management of employment taxes.

The management of employment taxes includes the requirement to ensure that deductions are made in accordance with legislation and relevant communications from HMRC, and that amounts due to HMRC are paid on a timely basis. All employees are paid through PAYE.

Day to day management of other taxes (principally VAT and corporation tax) is the responsibility of the Finance function. The Finance Director is responsible for ensuring that the necessary skills and experience are available to deliver effective management of these taxes. Controls include reconciliations with accounting records and management reviews of calculations and returns, and external expert input as required.

Whilst our charitable activities are wholly within the UK, as a large UK endowment, Motability Foundation (through its linked charity Motability Endowment Trust) holds investments that are domiciled in overseas jurisdictions. The Finance Director is responsible for ensuring that the necessary skills and experience are available to deliver effective management of these taxes. Controls include reconciliations and accounting records, management reviews of calculations and returns, and external expert input as required.

Our taxation arrangements, principally notification of our charitable status and the claiming of associated reliefs in those overseas jurisdictions, are structured to comply with our understanding of the intent of the relevant taxation provisions. We retain specific local advice where needed in order to support our compliance with local taxation rules in line with the strategic principles outlined above.

We do not engage in artificial tax arrangements or aggressive tax planning. Where it is necessary to interpret tax legislation, we adopt an approach which we would consider to be viewed as reasonable, and consistent with its intended purpose. We engage proactively with HMRC and overseas equivalents to discuss any areas of uncertainty.

The UK and overseas governments and their tax collecting bodies such as HMRC provide various tax incentives and exemptions. We utilise these rules where we consider them to be appropriate to our organisation and where we consider that our adoption of them is consistent with their intended purpose.

We adhere to relevant tax law and seek to minimise the risk of uncertainty or disputes. In the event of any uncertainty or potential uncertainty in our tax position we seek appropriate professional advice, and where appropriate engage directly with HMRC. We take a responsible attitude to the interpretation of tax legislation.

We are committed to maintaining an open and constructive relationship with HMRC and overseas tax collecting bodies. As part of this approach, we seek to ensure that any areas of uncertainty are discussed with the appropriate body at the earliest opportunity and are resolved through dialogue.

We seek to ensure that all returns are completed accurately and submitted within the specified time limits and that timely responses are provided to any questions raised by those bodies.