Welspun UK Ltd Tax Strategy
The Finance Bill 2016 introduced the requirement for certain businesses in the UK to publish their tax strategy as it relates to or affects UK taxation.
This document sets out the strategic tax objectives of Welspun UK Ltd and its UK subsidiaries. Welspun UK Ltd, being a subsidiary of Welspun India Ltd and ultimately a part of the Welspun Group is within the scope of the requirement.
The strategy is publicly available on Welspun UK Ltd.’s website in order to allow external stakeholders to understand the company’s approach to tax. The strategy is compliant with the UK tax strategy publication requirement set out in Part 2 of Schedule 19 FA 2016. Welspun UK Ltd is a responsible taxpayer and strives to maintain this responsible attitude towards tax. This is recognised in its tax strategy, which establishes an approach based on openness and transparency in all aspects of tax reporting and compliance, for both Welspun UK Ltd and its subsidiaries.
Our overall tax strategy is to:
- Meet all legislative requirements and make appropriate tax returns and tax payments
- Maintain a good relationship with HMRC by adhering to all HMRC rules and compliances
- Conduct a tax risk assessment and look to mitigate those risks with senior management buy-in
- Consider the tax impact in major or complex business decisions
- Seek to utilise tax reliefs and incentives where available in compliance with government legislation
- Obtain professional advice where necessary to ensure appropriate tax treatment
- Operate in an environment where we consider tax in the context of our reputation and brand
- Inform and educate employees on basic tax rules and the importance of compliance
Welspun UK Ltd incorporates tax planning as part of its overall business strategy and will consider undertaking a transaction in a way that leads to UK tax efficiencies providing it is aligned with the company’s business strategy and complies with UK tax legislation. The company will not engage in tax efficiencies if the underlying commercial objectives do not support the position, or if the arrangements impact upon the company’s reputation, brand, corporate and social responsibilities, or future working relationships with HMRC.
The company’s risk management is led and directed at board level. There is a code of conduct for all staff and there also is an induction session for all staff at the beginning of employment. The board of directors are responsible for the company’s risk management approach and the board coordinates risk management from a strategic viewpoint. However, the day to day risk management is coordinated and driven by members of the finance team; specifically, the Finance Director and Finance Controller.
Attitude towards risk
Welspun UK Ltd currently has a low tax risk as measured by the HMRC’s Business Risk Review process, and it aims to maintain this low level of risk through the following methods:
- Prompt submission of all UK tax returns with detailed accuracy so that it’s easy for the tax authorities to gain an accurate view of the company’s affairs, aided by a clear signing off process and audit trail
- Paying the appropriate amount of tax in a timely manner
- Ensure all tax filing positions are supported with appropriate documentary evidence
The Board is conscious of the external perception of a group’s attitude towards tax, and sees strong internal processes and a good relationship with our professional advisors as the best way to manage this reputational risk.
Approach towards dealings with the HMRC
Welspun UK Ltd aims to have a strong relationship with HMRC, and plans to build on this already strong relationship by ensuring tax compliances are timely and deadlines for tax filings and payments are met. We will continually seek the advice of our tax consultants to ensure that all legislation is adhered to and nothing is missed out. This way, we can forge a strong relationship with HMRC and ultimately reduce our tax risk.
Modern Slavery Act Transparency Statement
This statement made by Welspun UK Ltd., is for the year ending 31st March 2023
Opening Statement from Senior Management
Welspun UK is committed to ensuring that our business and supply chain reflects our values and respect for human rights. We are committed to combating and the prevention modern slavery and human trafficking in all our supply chains and within our UK operations.
All employees involved in the engagement of suppliers must communicate our approach to all prospective parties at the outset of our business relationship and monitor thereafter. We terminate our relationship with third parties engaged with us if they do not comply.
Welspun UK Ltd
Welspun UK Ltd is an importer, manufacturer, and distributor of textiles, specifically Bed Linens, flooring and Towels to the UK and European Markets Welspun UK has operations in and sources goods and services from the United Kingdom, India, China, Pakistan, Turkey, Portugal, Spain, and Denmark.
Our organisational structure and our business
Welspun UK Ltd is a leading multinational company whose core business is of sale and distribution of home textiles and furnishing goods, with the head office located in, Stockport, SK4 1BS. Welspun UK is governed by directors and various sub committees.
Our supply chains.
Our key supply chains include procuring goods from the United Kingdom, India, China, Pakistan, Turkey, Portugal, Spain, and Denmark.
Risk Assessment and management
We have continued to improve our understanding of the modern slavery related risks faced by our business and implemented further improvements to secure reduction of those risks.
Our policies in relation to slavery and human trafficking
Welspun UK is committed to combatting modern slavery and human trafficking, we have implemented the following policies:
1. Ethics and Compliance Policy
It is the policy of Welspun UK to comply with all applicable laws and regulations in the countries where Welspun UK conducts business.
2. Code of conduct
3. Whistle Blower Policy
4. SEDEX membership
Our due diligence processes
In addition to SEDEX membership, which ensures transparency, Welspun UK Ltd has an established processes to vet potential and current suppliers for their involvement in modern slavery and human trafficking by: -
1. Requiring an independent Ethical Audit such as SA8000, SMETA to be conducted on an annual basis. Welspun UK insists on reviewing the Corrective Action Reports for each of its suppliers.
2. On site visits on a two-yearly basis.
In both these processes, either our independent social auditor or Welspun UK Auditors, screening of suppliers for the presence of forced and child labour is conducted.
If we discover evidence of slavery or human trafficking with one of our suppliers through these processes, we will refrain from doing business with this supplier and will report such conduct to the relevant authorities, as appropriate. Indeed, we will not deal with any company that does not have a current independent social audit report and corrective action plan.
The Company will continue its practices in respect of combatting slavery or human trafficking to target areas of its business where there is a potential risk of modern slavery.
We shall continue to measure our effectiveness by: -
1. Ensuring there are Independent Ethical Audits or Social certification for every factory / supplier otherwise, we will not engage the business relationship.
2. Ensuring corrective actions identified in audits are addressed by the suppliers.
3. Assessing feedback from factory visits by Welspun UK Ltd Staff or agents and taking appropriate actions were required.
This statement is pursuant to section 54(1) of the UK Modern Slavery Act 2015 and constitutes Welspun UK Ltd slavery and human trafficking statement for the fiscal year ending 31st March 2022.
This statement is regularly reviewed and approved by Board of directors.
For and On Behalf of Welspun UK Ltd.
Director and CEO