Fair Tax Mark Statement of Co-Accounting South London Limited (April 2024)
This statement of Fair Tax compliance was compiled in partnership with the Fair Tax Foundation (“FTF”) and certifies that Co-Accounting South London Ltd (“the Company”) meets the standards and requirements of the FTF’s UK Small Business Standard for the Fair Tax Mark certification.
OUR Tax Policy
The Company is committed to paying all the taxes that we owe in accordance with the spirit of all tax laws that apply to our operations. We believe that paying our taxes in this way is the clearest indication we can give of being responsible participants in society. We will fulfil our commitment to paying the appropriate taxes that we owe by seeking to pay the right amount of tax, in the right place, and at the right time. We aim to do this by ensuring that we report our tax affairs in ways that reflect the economic reality of the transactions that we undertake during the course of our trade.
We will not seek to use those options made available in tax law, or the allowances and reliefs that it provides, in ways that are contrary to the spirit of the law. Nor will we undertake specific transactions with the sole or main aim of securing tax advantages that would otherwise not be available to us based on the reality of the trade that we undertake. The Company will never undertake transactions that would require notification to HM Revenue & Customs under the Disclosure of Tax Avoidance Schemes Regulations or participate in any arrangement to which it might be reasonably anticipated that the UK’s General Anti-Abuse Rule might apply.
We believe tax havens undermine the UK’s tax system. As a result, whilst we may trade with customers and suppliers genuinely located in places considered to be tax havens, we will not make use of those places to secure a tax advantage, and nor will we take advantage of the secrecy that many such jurisdictions provide for transactions recorded within them. Our accounts will be prepared in compliance with this policy and will seek to provide all the information that users, including HM Revenue & Customs, might need to properly appraise our tax position.
OUR Company Information
The Company is controlled by its sole director, Mr Damion Viney, who owns 50% of issued Ordinary shares and voting rights of the Company, another 50% is owned by Josephine Viney.
In 2021, the Company changed its share structure to allow for ‘Growth Shares’ to be offered to all employees and future employees who have been employed by the Company for at least three years. However, the Growth shares do not have any voting rights, but they may participate in dividends at a rate different from the Ordinary Shares.
The registered office address of the Company is Unit D228, Parkhall Business Centre, 62 Tritton Rd, London SE21 8DE – and this is also our trading address.
Tax Information
The average profit before tax over the three years to 30 June 2023 was £3,057. The average current tax charge over this period was £373 (12.2%). The average expected current tax charge over this period at 19% would be £581. The reason that our average current tax charge is less than what would be expected is explained below in the following current tax reconciliation with accompanying narratives:
Average profit before tax £3,057
Average expected current tax charge (19.0%) £581
Accelerated capital allowances (Note 1) (£260)
Expenses not deductible for tax purposes (Note 2) £158
Super-deduction capital allowances (Note 3) (£106)
Average current tax charge (12.2%) £373
As at 30 June 2023, the company had no deferred tax assets or liabilities on the balance sheet; and had no movements in deferred tax expensed or credited to the income statement.
Accelerated capital allowances – the accounting treatment of fixed assets differs from the tax treatment. For accounting purposes, fixed assets are depreciated over their useful economic lives. For tax purposes, there are specific rules to what can, or should, be claimed. The differences between these treatments creates a tax adjustment. This difference is only a timing difference that will balance out over time.
Expenses not deductible for tax purposes – some business expenses, although entirely appropriate for inclusion in the accounts, are not allowed as a deduction against taxable income when calculating the tax liability. Examples of such expenses could be: client entertaining; or fines and penalties.
Super-deduction capital allowances – from 1 April 2021 until 31 March 2023, UK companies investing in qualifying new plant and machinery assets were able to claim a 130% super-deduction capital allowance on qualifying plant assets. For qualifying new plant and machinery assets, the top 30% slice of the super-deduction allowance (i.e., the portion which exceeds the actual purchase cost of the qualifying asset) creates a permanent tax adjustment.