This document sets out the UK tax strategy of ADVANCE Group Holdings Limited (and it’s subsidiaries) (“the Company”) in accordance with paragraph 16(2), Schedule 19, Finance Act 2016.
The Company operates in the contractor supply and workforce solutions sector, providing skilled labour and managed staffing services to clients across the UK. With an annual turnover of approximately £200 million, the Company recognises the importance of maintaining a responsible approach to tax governance and compliance.
This strategy applies to all UK taxes, including Corporation Tax, PAYE and NIC, VAT, CIS (Construction Industry Scheme), and any employment-related taxes.
This tax strategy is approved by the Board of Directors and reviewed annually.
Governance and Risk Management
The Company’s approach to tax is underpinned by strong governance and a commitment to full compliance.
- Board Oversight: The Board retains ultimate responsibility for the Company’s tax affairs and overall risk appetite.
- Senior Accounting Officer (SAO): The Chief Financial Officer acts as the SAO, ensuring that appropriate systems and controls are in place to manage tax risk.
- Operational Responsibility: Day-to-day management of tax matters rests with the Head of Finance and Tax Manager, who report to the CFO.
- Controls and Review:
- All tax returns are reviewed internally before submission.
- External advisors are engaged for complex areas such as employment taxes, status (IR35/off-payroll working) and CIS compliance.
- Periodic internal reviews are conducted to assess the effectiveness of our tax controls and identify improvements.
The Company seeks to identify and mitigate tax risks before they materialise. Any significant issues are escalated to the Audit Committee.
Approach to Tax Planning
The Company’s tax planning approach is commercially driven and low-risk.
- We only undertake tax planning that supports genuine business activity and commercial objectives.
- We do not enter into artificial arrangements or schemes designed to avoid tax.
- We make full and proper use of available statutory reliefs and incentives (e.g., capital allowances, R&D credits) in line with legislation and HMRC guidance.
- Specialist tax advice is sought for non-routine transactions such as acquisitions, restructurings, or new contractual arrangements.
Our objective is to pay the right amount of tax at the right time.
Management of Key Tax Risks in the Contractor Sector
Operating in the contractor supply sector presents specific tax compliance challenges. The Company takes proactive steps to manage these, including:
a) PAYE and NIC Compliance
- Ensuring that all employees are taxed correctly under PAYE.
- Maintaining robust systems for real-time information (RTI) submissions.
- Ensuring that salary sacrifice and other payroll arrangements are compliant with UK employment tax law.
b) Off-Payroll Working (IR35)
- The Company maintains clear procedures for assessing employment status for tax purposes in line with Chapter 10, ITEPA 2003.
- Where applicable, tax and NIC are operated through payroll for deemed employees.
- The Company trains relevant managers and compliance teams to ensure consistent application of IR35 rules.
c) Construction Industry Scheme (CIS)
- For clients and contractors operating in construction-related roles, we ensure correct registration, verification, and deduction procedures under CIS.
- Regular reconciliations are performed between CIS records and accounting ledgers.
- CIS returns are reviewed and filed accurately and on time.
d) VAT and Reverse Charge
- The Company applies the correct VAT treatment to supplies of labour and managed services.
- We comply with the Domestic Reverse Charge for Construction Services where applicable.
- VAT returns are reconciled to management accounts monthly to ensure accuracy.
Tax Risk Appetite
The Company has a low tolerance for tax risk.
We aim to:
- Avoid uncertainty by seeking advice where the tax treatment is unclear.
- Disclose any errors to HMRC promptly and cooperate fully in their resolution.
- Ensure tax considerations do not drive commercial decisions.
Relationship with HMRC
The Company maintains an open, professional, and transparent relationship with HMRC.
- We aim for full, timely disclosure and to work collaboratively with HMRC to resolve any issues.
- We respond to HMRC enquiries promptly and provide clear, accurate information.
- Where uncertainty exists, we seek to discuss matters in ADVANCE or obtain clearance where appropriate.
The Company values a relationship with HMRC based on trust and integrity.
Publication and Review
This tax strategy was approved by the Board of Directors on 1 December 2025.
It applies to the financial year ending 31/03/2025 and will be reviewed annually.
In accordance with paragraph 19(2), Schedule 19, Finance Act 2016, this document is published on the Company’s website and available to the public.
Signature:
Director's name: Shaun Critchley
Job Title: Chairman