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Lawsons Group Tax Policy
Tax Policy Scope
This strategy applies to Lawsons Holdings Limited and to the group of United Kingdom companies headed by Lawsons Holdings Limited in accordance with paragraph 16 of Schedule 19 to the Finance Act 2016. A list of the companies to which it applies is set out below.
In this strategy, references to ‘Lawsons’ and ‘the Group’ are to all these companies.
This strategy applies from the date of publication until it is superseded. References to ‘United Kingdom Taxation’ are to the taxes and duties set out in paragraph 15(1) of the Schedule which include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax, and Stamp Duty Land Tax.
References to ‘tax’, ‘taxes’ or ‘taxation’ are to United Kingdom taxation only and similar United Kingdom duties in respect of which the Group has legal responsibilities.
The Group is committed to paying all the taxes it owes in accordance with the spirit of all tax laws that apply to its operations. We believe paying our taxes in this way is the clearest indication we can give of being responsible participants in society. We will fulfil our commitment to paying the appropriate taxes that we owe by seeking to pay the right amount of tax, in the right place, and at the right time.
We aim to do this by ensuring we report our tax affairs in ways that reflect the economic reality of the transactions that we undertake during our trade.
Our statutory accounts and tax returns will be prepared in compliance with this policy, and we will seek to provide all the information that users, including HM Revenue & Customs, might need to properly appraise our tax position.
Background to Lawsons
Lawsons operates as the largest independent Builders’ Merchant and supplier of associated services in the South-East of the United Kingdom and is headquartered in the United Kingdom with all its operations also based in the United Kingdom.
We strongly believe tax havens undermine the United Kingdom’s tax system. As a result, while we may trade with customers and suppliers genuinely located in places considered to be tax havens, we will not make use of those places to secure a tax advantage, and nor will we take advantage of the secrecy that many such jurisdictions provide for transactions recorded within them.
We will not seek to use those options made available in tax law, or the allowances and reliefs that it provides, in ways that are contrary to the spirit of the law. Nor will we undertake specific transactions with the sole or main aim of securing tax advantages that would otherwise not be available to us based on the reality of the trade that we undertake.
The Group will never undertake transactions that would require notification to HM Revenue & Customs under the Disclosure of Tax Avoidance Schemes Regulations or participate in any arrangement to which it might be anticipated that the United Kingdom’s General Anti-Abuse Rule might apply.
Objective of the Lawsons Tax Policy
The Group both pays to and collects on behalf of the United Kingdom Government substantial amounts of tax, which are remitted as they fall due.
The Group’s objectives in managing and controlling its tax affairs and related tax risks are to follow its 10-point code which is:
1) Ensure full and total compliance with all applicable rules, regulations and disclosure requirements under which the Group operates.
2) Continue to develop and maintain an open and co-operative relationship with the tax authorities it deals with.
3) Be transparent about its dealings with these tax authorities.
4) Adhere to OECD guidelines relating to the tax treatment of cross border purchase transactions.
5) Pay in full the correct amount of tax as it falls due.
6) Maintain appropriate systems, processes and controls to ensure the correct calculation and recording of tax liabilities and receivables.
7) Have a zero-tolerance approach to tax evasion and the facilitation of tax evasion.
8) Review the availability of and claim tax incentives available to the Group where relevant to its commercial activities, ensuring that these are claimed with consideration to both the letter and spirit of the relevant legislation.
9) Protect its reputation as a responsible United Kingdom taxpayer; and
10) Protect its ability to service government contracts when such opportunities arise.
Governance Structures in place at Lawsons
The Board is responsible for the Group’s tax strategy and policies and has delegated responsibility for their implementation within the Group to the Group Finance Director.
As part of the annual financial reporting process the Group Finance Director reports to the Board of Directors on the Group’s compliance with its tax strategy, policies and on its tax position.
Annually the Board receives an update on the status of the Group’s tax position, its effective tax rate, tax provisions and key tax issues to ensure it is fully informed of tax developments and
issues affecting the Group.
Tax risk management.
Tax risks are assessed as part of the Group’s formal governance process and are reviewed by the Group Finance Director and reported to the Board on a regular basis.
Significant tax risks, implications arising from these risks and potential mitigating actions are considered by the Group Board in line with the Group’s governance process.
The Group has an experienced and suitably qualified finance team to deal with most of its tax matters and provide oversight and support as necessary. Nevertheless, the Group’s governance structure requires that specialist third party technical advice be obtained on any significant tax treatments before the Board of Directors authorises the tax position to be adopted by the Group.
The systems used to determine tax liabilities are subject to regular review by the Internal Audit Department whilst the external auditors undertake a review of the Group’s corporation tax provisions to be included in the Group’s statutory accounts and the calculation of its VAT liabilities as part of the annual statutory audit.
HM Revenue and Customs periodically reviews aspects of the Group’s systems which the Group welcomes as it provides further assurance that the correct amount of tax is being paid as it falls due.
How Lawsons approach Tax Planning and Level of Risk
The Group seeks to protect its reputation as a responsible corporate citizen by ensuring that it acts in accordance with the letter and the spirit of current tax legislation so that it pays the right amount of tax when it falls due.
The level of risk which the Group accepts in relation to United Kingdom taxation is consistent with its overall objective of achieving certainty in the group’s tax affairs. In relation to any specific issue or transaction, the Board is responsible for identifying the risks, including tax risks, which need to be addressed and for determining what actions should be taken to manage those risks, having regard to the materiality of the amounts and obligations in question.
The Group considers that it has a low-risk appetite in relation to tax matters.
Lawsons Relationships with the Tax Authorities
The Group’s policy is to deal with all tax authorities in an open, professional, and mutually respectful manner.
Tax legislation is complicated and can be difficult to interpret. As a result, it can take time to reach an agreed position with the tax authorities. The Group aims to work collaboratively with the tax authorities to achieve certainty of its tax position and to resolve open tax enquiries and disputes as rapidly as possible, whilst recognising its responsibility to protect the interests of its stakeholders.
The Group employs professional advisors to assist it with complex areas of its tax affairs and to deal with the tax authorities in the United Kingdom.
The Group meets with HM Revenue and Customs as and when requested to discuss the Group’s risk rating and ensure it is being maintained at a suitable level.
In large businesses governed by complex tax legislation, adjustments are occasionally discovered by the Group to the amount of tax previously paid. In these circumstances the Group’s policy is to inform HM Revenue and Customs and promptly pay any tax due or reclaim any tax refund.
Further information
The Group’s approach to tax applies to all entities in the Group and to all transactions it enters with third parties outside the Group. The Group’s tax strategy is reviewed and updated annually as appropriate.
Approved by: Christopher Harrison (Group Finance Director)
On behalf of the Board of Directors of Lawsons Holdings Limited in accordance with paragraphs 19(2) Schedule 19 Finance Act 2016.
Date: 28th February 2025
For any further questions about our Tax Strategy, please contact chris.harrison@lawsons.co.uk
List of Group entities covered by this Tax Strategy:
- Lawsons Holdings Limited (registered company number: 04818214)
- AVS Fencing Supplies Limited (registered company number: 02818962)
- AVS Group Holdings Limited (registered company number: 10367351)
- Briants of Risborough Limited (registered company number: 00827172)
- Crowthorne Fencing Systems Limited (registered company number: 01552987)
- Hertfordshire Buildings Supplies Limited (registered company number: 10487167)
- Hertfordshire Timber and Building Supplies Limited (registered company number: 03883752)
- Hertfordshire Timber Supplies Limited (registered company number: 08328267)
- Lawsons (Whetstone) Limited (registered company number: 02790259)
- Oxford Fencing Supplies Limited (registered company number: 08864575)
- Southill Sawmills Limited (registered company number: 02499709)
- The Landscape Centre Limited (registered company number: 04015821)
- Witham Timber (Boston) Limited (registered company number: 06096041)