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Hyp Group Tax Strategy

We are committed to conducting our business in accordance with applicable laws and our stringent internal Code of Conduct.

Tax PrinciplesTax GovernanceTax Risk ManagementApproach to Tax Planning and Risk AppetiteRelationship with HMRCTax Strategy Review and Publication

This Tax Strategy applies to Hyp Group Ltd and all subsidiary companies. References to ‘Hyp Group,’ ‘the Hyp Group of companies,’ or ‘Group’ refer to all such entities under the ownership and control of Hyp Group Ltd. References to ‘Tax’ include all taxes and duties covered by paragraph 15(1) of Schedule 19 FA 2016, such as corporation tax, PAYE, National Insurance Contributions (NIC), VAT, and Stamp Duty Land Tax (SDLT).

Tax Principles

Hyp Group’s Tax Principles guide our approach to tax compliance and governance, ensuring alignment with both legal obligations and responsible business practices:

  1. Full Compliance:
    We are committed to complying with all applicable tax laws, rules, regulations, and disclosure requirements in every jurisdiction where we operate. This includes timely submission of tax returns, payments, and adherence to statutory reporting standards.
  2. Purposeful Transactions:
    We ensure all transactions undertaken by Hyp Group are driven by genuine business needs or have clear commercial justification. We avoid engaging in transactions that lack substance or are primarily motivated by tax advantages.
  3. Active Risk Management:
    Tax risks are identified, assessed, and managed proactively. We strive for certainty in our tax positions through diligent evaluation and documentation of all transactions, supported by clear processes and controls.
  4. Transparent Relationships:
    We seek to maintain a strong, collaborative relationship with HMRC and tax authorities in other jurisdictions, characterized by openness, honesty, and mutual trust.

Our commitment is to meet all tax obligations in the spirit and letter of the law, demonstrating accountability as a responsible corporate citizen.

Tax Governance

The governance of Hyp Group’s Tax Strategy is structured to ensure accountability, clarity, and operational excellence:

  1. Board Oversight:
    The ultimate responsibility for Hyp Group’s tax strategy and compliance lies with the Board of Directors. Tax considerations are integrated into strategic decisions and business operations at all levels.
  2. CFO Accountability:
    The Chief Financial Officer (CFO) holds Board-level responsibility for tax matters. The CFO advises the Board on tax risks, compliance, and the financial implications of tax-related issues.
  3. Operational Management:
    Day-to-day management of Hyp Group’s tax affairs is delegated to the Group Tax Manager, who reports to the Group Financial Controller. This includes compliance monitoring, risk assessment, and coordination with external advisors.
  4. Expertise and Staffing:
    Hyp Group’s in-house tax team comprises professionals with appropriate qualifications and experience to manage the Group’s complex tax obligations. External advisors are engaged as necessary to support areas requiring specialist expertise.
  5. Decision-Making Framework:
    The Board ensures that tax implications are a key consideration in all significant business decisions, reflecting Hyp Group’s commitment to compliance and responsible tax planning.

Tax Risk Management

Hyp Group adopts a structured approach to managing tax risks, recognizing that tax compliance is integral to overall business sustainability:

  1. Risk Identification and Evaluation:
    Tax risks, including compliance, reporting, and transactional risks, are identified and evaluated regularly. These risks are logged in a Tax Risk Register, which is maintained and reviewed by the CFO.
  2. Documentation and Controls:
    Decisions on tax matters are supported by thorough documentation that captures the underlying facts, analysis, and conclusions. Systems and processes are in place to ensure compliance with statutory requirements and the accuracy of tax filings.
  3. Use of External Advice:
    For complex or uncertain tax issues, Hyp Group consults with external tax advisors to ensure compliance and alignment with applicable laws. In cases of significant uncertainty, advance clearance from HMRC or other tax authorities may be sought.
  4. Proactive Monitoring:
    Tax compliance is monitored through periodic reviews and audits to identify potential risks or areas for improvement. Changes in legislation or business activities are reviewed to ensure continued alignment with tax requirements.

Approach to Tax Planning and Risk Appetite

Hyp Group’s approach to tax planning aligns with its commitment to compliance, transparency, and shareholder value creation:

  1. Integration with Business Objectives:
    Tax planning is aligned with the Group’s commercial objectives, ensuring that business activities are accurately reflected in tax filings and accounts.
  2. Maximizing Allowances:
    Where appropriate and lawful, Hyp Group claims all available tax allowances, deductions, reliefs, incentives, exemptions, and credits to optimize its tax position while adhering to its Tax Principles.
  3. Avoiding Aggressive Tax Planning:
    Hyp Group does not engage in artificial or contrived tax arrangements. All tax planning supports genuine commercial activities, and the Group maintains a low tolerance for tax risk.
  4. Transparency in Transactions:
    The tax team is involved in all significant business transactions, ensuring potential tax implications are assessed in advance. This approach minimizes risks and ensures consistency in compliance.

Relationship with HMRC

Hyp Group places a strong emphasis on maintaining a positive and transparent relationship with HMRC, fostering trust and collaboration:

  1. Proactive Engagement:
    Hyp Group keeps HMRC informed of significant business transactions and organizational changes. Early engagement ensures potential tax issues are addressed promptly and effectively.
  2. Commitment to Low-Risk Status:
    Hyp Group is committed to retaining its low-risk tax status by ensuring compliance and demonstrating openness in all interactions with HMRC.
  3. Error Disclosure:
    Any errors in tax filings are disclosed to HMRC as soon as they are identified, with corrective actions taken promptly.
  4. Comprehensive Reporting:
    Tax computations and filings include all relevant facts, with clear disclosure of any uncertainties or potential risks in tax treatment.

Tax Strategy Review and Publication

This Tax Strategy will remain effective until updated or superseded. It is reviewed annually and reassessed following any significant organisational changes or legislative developments to ensure continued relevance and appropriateness.

Hyp Group regards this publication as fulfilling its obligation under paragraph 16(2) of Schedule 19 Finance Act 2016 to publish its Tax Strategy for the current financial year.

This detailed approach underscores Hyp Group’s commitment to tax compliance, responsible governance, and sustainable business practices.