We set out to build the world’s most trusted advisory business, creating positive change for our people, our clients, the community around us and our environment. Paying the right amount of tax, in the right place, at the right time, is core to our purpose.
This policy sets out how we do that. It applies to Baringa Partners LLP (“Baringa”) and all UK entities in our group, as UK taxation relates to them.
Compliance and reporting principles
We meet all of our statutory obligations everywhere we do business. Compliance for us means paying the right amount of tax in the right place at the right time.
We take appropriate professional advice and apply diligent professional care and judgment in making decisions relating to the tax treatment and compliance of our business activities.
We also expect our Partners personally to comply with applicable UK and international tax laws and not engage in any inappropriate or aggressive tax planning.
Governance and risk management principles
Accountability for our tax operations ultimately lies with the Finance and Audit Executive. This includes providing guidance and oversight over how tax risk is managed across Baringa.
The Finance Director, with the support of their team, is responsible for the day-to-day management of our tax operations and ensures there are appropriate internal controls to underpin operational tax compliance. This includes segregation of duties, initial and second levels of review and, where appropriate, reconciliation checks to underlying systems to provide additional control over accuracy of tax numbers.
Tax planning principles
We ensure that we meet all our statutory obligations in each location in which we operate.
We seek only to engage in tax planning that is aligned to business and commercial activities. We may seek to claim appropriate reliefs and incentives (such as capital allowances), and to avoid double taxation so that the same income is not taxed twice in different places. We will not put in place any arrangements which are contrived, inconsistent with the intention of any applicable legislation or contrary to anti-avoidance legislation.
Relationship with HMRC
We seek to maintain an open and transparent relationship with HMRC. The relationship is built on full, honest disclosure and in line with UK statutory filing obligations.
Whenever possible, we will work with HMRC to agree on issues, or gain certainty as early as possible.
Our total UK tax contribution
For the financial year ended 31st March 2023, we contributed £153m (2022: £120m) in UK taxes to the UK public finances, made up of £80m (2022: £65m) in taxes borne and £73m (2022: £55m) in taxes collected.
People are essential to our business and our total tax contribution reflects this. Taxes borne of £80m include Partner income tax and national insurance contributions payable on distributable profits together with employer national insurance contributions and business rates. Taxes collected of £73m include national insurance contributions collected from employees and net VAT collected from our customers.
Conclusion and approval
This policy meets the requirement for Baringa to publish its Tax Strategy as required by Schedule 19 of the UK Finance Act 2016. It is effective for the financial year ended 31st March 2023 and for all subsequent years until superseded.
The Tax Strategy was approved by the Finance and Audit Executive on 20th February 2024.