Tax Strategy

Publication & Approval Date: June 2020

Foootasylum Limited

Footasylum Limited (‘the Group”) is a UK-based lifestyle fashion retailer, focused on bringing to market footwear and apparel collections predominantly aimed at 16 to 24 year old fashion-conscious customers.

The Company operates a multi-channel model which combines a strong store estate (in a variety of high street, mall and retail park locations in cities and towns throughout the UK) with a fast growing eCommerce platform (facilitating UK and international sales) and a recently launched wholesale arm (for distributing its own brand ranges via a network of partners).

Tax Planning

The Group does not engage in any artificial tax arrangements where a tax impact assessment is performed, the Group will adopt a low risk approach to minimise the risk of uncertainty or disputes.

We use tax planning to support the business strategy and as such all decisions will have a sound commercial rationale, within the confines of the law, and will take into account any impact that such actions will have on its external reputation. The Group adheres to the spirit of Base Erosion and Profit Shifting (“BEPS”), which is designed to prevent aggressive tax avoidance. Intercompany transactions are conducted on arm’s length principles, in accordance with OECD guidelines.

Tax Risk Management and Governance

We are committed to paying our fair share of tax to build a successful and sustainable business. Our approach to responsible tax management is to pay the correct amount of tax in the right jurisdictions and on time.

The board has approved this tax strategy. The Finance Director has overall responsibility for tax and meets regularly with the Group’s Board and Audit Committee to review tax risks and controls. The company's central finance function develops the company's tax policies and processes and ensures that appropriate knowledge is in place. Our policies and governance framework operate to ensure we identify, comply and mitigate tax risks within all jurisdictions and their laws and regulations, including the UK which is our main place of business. Where there is significant uncertainty or complexity in relation to a risk, external advice may be sought from our professional advisors and also discussed with HMRC to ensure transparency and compliance in our approach.

Where tax incentives and exemptions are implemented by the UK Government or by HMRC to encourage investment, employment and economic development we aim to apply these in the manner intended to minimise the tax cost of conducting our business

Risk is managed by implementing the processes and controls which ensure that correct tax treatments are adopted and can be substantiated and that compliance requirements are dealt with on a complete, correct and timely basis. While the Group does not have a prescribed level of acceptable tax risk, tax risks are managed on a case by case basis to ensure risk is minimal. These processes are amended and developed in response to changes in the business and regulatory environment.

Relationship with HMRC

The Group value having a positive and transparent relationship with HMRC and comparable international tax authorities. We ensure that all information is clearly presented to HMRC as required.

We seek to anticipate any tax risks at an early stage, including clarifying areas of uncertainty within HMRC as they become evident. We consider this collaborative approach to our relationship with HMRC to be fundamental to delivering our Board led tax strategy.

This tax strategy relates to Financial Year End 30th January 2021 and will be reviewed annually. For further details please contact finance @ finance@footasylum.com

The purpose of this document is to satisfy the requirements of paragraph 16(2) Schedule 19 Finance Act 2016 in relation to the publications of our UK tax strategy