Clece Care Services Limited – UK Tax Strategy
This UK tax strategy for Clece Care Services Limited (‘the Company’ or ‘Clece’) is published in accordance with the requirements set out in Schedule 19 of Finance Act 2016. This tax strategy, which has been approved by the Board of Directors, is effective for the year ending 31 December 2021.
The list of entities which this tax strategy applies to can be found at Appendix 1.
Clece’s ultimate parent entity is ACS Actividades de Construcción y Servicios S.A (‘ACS’), incorporated in Spain. Whilst ACS has been in existence for over two decades, Clece commenced its operations in the UK in 2013 and today is a group of 16 companies with over 4,000 employees.
Clece is a group of regional care companies providing domiciliary care services across the UK, with Clece’s contracts predominantly being with Local Authorities and the National Health Service.
Approach to Tax Risk Management
Clece strives to be fully tax compliant in the UK, paying the correct amount of tax in a timely manner. As Clece’s approach to tax risk management is cascaded down from group level, Clece has adopted and developed the tax policy implemented by ACS.
The Board of Directors is comprised of the UK CEO and Clece Group Head of Legal and the ultimate responsibility for compliance with the UK tax strategy rests with the UK CEO.
The UK CEO delegates the day-to-day management of tax affairs to the Head of Finance for each UK group company. Each company has its own Head of Finance in addition to its own Operations Director, who the Head of Finance ultimately reports to. The Head of Finance is responsible for ensuring their company’s tax submissions are prepared in accordance with company policies and tax legislation. To ensure the organisation is effective and responsive, all Heads of Finance and Operations Directors are authorised and responsible for making decisions as each company strives to be fully compliant with UK tax legislation. Should any risk or concern be identified by the Head of Finance or Operations Director, it is escalated to Clece´s UK Corporate Controller who will ultimately report the concern to the UK CEO.
Clece’s UK Corporate Controller is a qualified professional who undertakes the initial preparation of the Company’s corporation tax returns. The UK Corporate Controller is supported by externally appointed advisers who undertake a review of the tax filings prepared and ensure they are accurate and submitted in a timely manner.
Clece is generally liable to corporation taxes, employment taxes, VAT and occasionally stamp duty taxes.
Clece seeks guidance from externally appointed advisers to advise on any changes to tax legislation which may be relevant to the Company as it strives to remain fully compliant with UK tax legislation at any given time. Clece engages with external advisers to ensure its VAT and stamp duty tax obligations are met.
Attitude to Tax Planning
Clece’s primary objective is to grow in an organic and sustainable way with the aim to become the leader of care services in the UK and tax mitigation is not the driving factor.
The Company’s approach to tax follows that of its business strategy and Clece does not look to tax planning arrangements to aid its growth. On the contrary, the Company’s tax management, as endorsed by ACS, is based on a reasonable interpretation of the tax legislation, taking into account the literal terms, the spirit and purposes intended by Parliament.
Where Clece identifies that acquisitions are required to support the organic growth, the Company is exceptionally selective of any acquisition opportunities. The Company undertakes its own due diligence on target companies to ensure it is satisfied that the target is conducting its business in a manner which is acceptable to Clece before appointing external advisers for further due diligence.
Further to this, Clece is committed to not acquiring any entities which have registered offices in territories which are considered to be tax havens, and nor will it enter into transactions (within the group) where the economic purpose could be deemed to be base erosion or artificial profit shifting to low or no-tax locations.
Clece’s attitude to claiming capital allowances and corporation tax reductions is to err on the side of caution and if in doubt the Company takes a prudent approach to disallow any reliefs, in Her Majesty’s Revenue and Custom’s (‘HMRC’) favour.
Regarding the transfer pricing of intercompany transactions, Clece is compliant with the OECD Transfer Pricing Guidelines and engages with an external adviser to assist with its compliance.
The Company encourages employees to make use of the voluntary internal training available. Training provided to the Head Office is mandatory and includes Fraud Prevention Awareness, Anti-bribery Awareness, Anti-money Laundering Awareness and Whistleblowing. The completion of these training courses is monitored on a regular basis.
Level of Tax Risk for UK Taxation
ACS is heavily involved in ensuring each company is compliant with local legislation.
As Clece’s client base is predominantly local authorities, Clece’s services are regulated by the Care Quality Commission and Care Inspectorate. Clece considers its reputation to be of paramount importance to its operations. It seeks to ensure, via its prudent approach to tax risk, not to cause any damage to its reputation.
Approach to Working with Tax Authorities
When dealing with HMRC, the Company seeks to maintain an open, courteous and professional relationship. As endorsed by ACS, Clece seeks to ensure it maintains a cooperative relationship with HMRC based on mutual confidence and transparency.
The Company aims to satisfy the necessary filing and payment requirements in accordance with the deadlines set by HMRC, and ensure all statutory records are maintained.
Where the Company seeks to obtain clarity on a tax technical matter, Clece will contact its advisers who will approach HMRC on their behalf where required.
Mario Abajo Ménguez CEO
Appendix 1 – List of entities
All Care (GB) Limited
Call-In Homecare Limited
Care Relief Team Limited
Clece Care Services Limited
Dale Care Limited
Diamond Quality Care Services Limited
Hartwig Care Limited
Heath Lodge Care Services Limited
Homecarers (Liverpool) Limited
Ideal Complex Care Limited
Lauriem Complete Care Limited
NV Care Limited
R & L Healthcare Limited
Universal Care Services (UK) Limited