Poundworld is one of the UK’s leading value variety retail businesses with over 340 stores and 6,000 employees across the United Kingdom. Operating under the Poundworld and Bargain Buys brand names, we serve over two million customers and sell around 11 million products a week. Stocking over 7,000 lines, our business provides shoppers with savings on a range of top brands, across categories such as grocery, cleaning, health and beauty, pet care, toys and stationery.
This tax strategy applies to all UK entities within the Poundworld Group and references to ‘Poundworld’ are to all of those entities.
This document is produced in accordance with and considered to meet the requirements under Section 2, Schedule 19 of Finance Act 2016, which requires large companies to publish their UK tax strategy and has been approved by the Board of Poundworld Retail Ltd.
Based on an understanding of the needs of our stakeholders and in line with our corporate governance procedures, the Board of Directors has established these fundamental principles for the management of taxes within the Group. The tax strategy is ultimately owned by the Board, but accountability for the management of taxes is delegated to the Chief Financial Officer (‘CFO’) who ensures that appropriate people, processes and systems are in place to ensure compliance. The Board is consulted with and provides input on all material operational decisions involving taxation.
Given the scale of our business and volume of tax obligations, tax risks will inevitably arise from time to time in relation to the interpretation of tax law and nature of our compliance arrangements. In line with the Poundworld’s governance framework and risk management procedures, we proactively seek to identify, evaluate, manage and monitor tax risks to ensure they remain in line with our risk approach. We employ professionals with appropriate experience and qualifications. However, if there are any areas of significant complexity in relation to tax, external advice may be sought.
Our changing commercial strategies and the evolving regulatory environment in which we operate regularly gives rise to choices as to how we structure our commercial arrangements. In making these choices we consider tax as a factor along with others as we seek to maximise value on a sustainable basis for our shareholders.
To ensure Poundworld’s planning principles are followed, it is required that the CFO is involved in all key business planning activities. Any tax planning undertaken will have commercial and economic substance and will have regard to the potential impact on our reputation and broader goals. We will not undertake planning that we consider is contrived or artificial.
We are committed to compliance with tax law in the UK. Compliance for us means paying the right amount of tax at the right time and involves disclosing all relevant facts and circumstances to the tax authorities and claiming reliefs and incentives where available.
Poundworld adopts a balanced approach between risk mitigation and safeguarding shareholder value. Fundamentally, we aim to minimise uncertainty in relation to our tax affairs and we manage our affairs based on sound commercial principles. Where uncertainties arise, we proactively engage with external advisers and with HMRC to seek certainty.
We engage with tax authorities with honesty, integrity, respect and fairness and in good faith. Wherever possible, we do so on a real time basis to minimise risk and will regularly seek to meet with HMRC to enable them to understand our business as it changes and evolves.
Where we disagree with a ruling or decision of a tax authority, we reserve our right to take action in the event of legitimate disputes, but will first seek to swiftly resolve any disputed matters through pro-active and transparent discussion.