Legals
Welspun UK Ltd Tax Strategy
Background
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.
Risk Management
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 is made by Welspun UK Limited (“Welspun UK”) pursuant to section 54(1) of the UK Modern Slavery Act 2015 and constitutes Welspun UK’s modern slavery and human trafficking statement for the fiscal year ending 31 March 2024.
Welspun UK Limited is a company registered in England and Wales, with registration number 03902741, trading under the brand name Christy.
Opening statement from the Directors
Welspun UK is a leading multinational importer, manufacturer and distributor of textiles, specifically bed linens, flooring and towels, to the UK and European Markets. Welspun UK’s head office is in Stockport, Cheshire and Welspun UK has operations in and sources goods and services from China, Denmark, India, Pakistan, Portugal, Spain, Turkey and the United Kingdom. Welspun UK is governed by directors and various sub committees.
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 preventing modern slavery and human trafficking in our supply chain and within our UK operations.
Risk assessment and management
As an importer of textile goods, we have assessed the risks within Welspun UK’s operations and supply chain and have identified that our choice of manufacturers is key to preventing modern slavery. We have policies and procedures in place to assist us in preventing and detecting modern slavery risks within our business.
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 them thereafter. In instances where we are unable to influence our supply chain to meet the required standards, we will terminate our relationship with them.
Our policies and procedures
- 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
- Welspun Code of Conduct – the Code of Conduct contains a section on Human Rights, setting out Welspun UK’s zero tolerance of child labour and forced labour and promoting economic inclusion of women. All suppliers are required to sign up to the Welspun Code of Conduct
- Welspun Whistle Blower Policy – this communicates the procedure for employees to make a whistle-blowing disclosure, sets out the procedure for dealing with such reports and protecting the whistle-blower. This information is also provided in the Employee Handbook.
- Supplier due diligence - our supplier agreement requires that
- a) our suppliers must be subject to an annual independent Ethical Audit such as SA8000 or SMETA
- b) on site visits must be carried out on a two-yearly basis
In both processes, whether conducted by an independent social auditor or a Welspun UK auditor, the auditor will check for the presence of forced and child labour.
If we discover evidence of modern slavery or human trafficking at one of our suppliers, we will refrain from doing business with this supplier and will report such conduct to the relevant authorities, as appropriate.
- SEDEX membership – our SEDEX membership allows us to monitor our suppliers’ audit results and risk findings and to review any Corrective Action Plans they have in place.
Looking ahead
Welspun UK will continue its practices in respect of combatting modern slavery or human trafficking by targeting the areas of its business where there is a potential risk of modern slavery. We shall continue to measure our effectiveness by:
- Requiring there is an Independent Ethical Audit or Social Certification for every supplier and every factory
- Overseeing that Corrective Action Plans identified in audits are addressed by the suppliers
- Assessing feedback from factory visits by employees or agents of Welspun UK and taking appropriate actions where required
- Engaging in initiatives such as the Better Cotton Initiative
This statement has been reviewed and approved by the directors of the company.
For and on behalf of Welspun UK Limited,
Director and Chief Executive Officer
To request a copy of one of our previous Modern Slavery Statements, please email dpco@christy.co.uk
