Tax Strategy

Scope

Nottingham Trent University is a statutory Higher Education Corporation (HEC) established under the Education Reform Act 1988. The University's powers are specified in s124 of that Act. The University title and degree-awarding powers were granted under the Further and Higher Education Act 1992.

Nottingham Trent University has exempt charity status, which derives from the Charities Act 1993 (subsequently consolidated in the Charities Act 2011). Exempt charities benefit from charitable status but are not registered with the Charity Commission. The University is subject to regulations by the Office for Students, which since 1 April 2018, has been the principal regulator of those higher education institutions in England that are exempt charities.

This Tax Strategy applies to the Nottingham Trent University and all its related, subsidiary entities in accordance with paragraphs 19 and 25 of Schedule 19 to the Finance Act 2016. This Tax Strategy applies from the date of publication until it is superseded. This Tax Strategy has been published in accordance with paragraph 16(4) of Schedule 19 of the Finance Act 2016 by being made available on the University’s website. References to “UK Taxation” are to the taxes and duties set out in paragraph 15(1) of Schedule 19 of the Finance Act 2016, which include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax and Stamp Duty Land Tax. References to “tax”, “taxes”, “taxation” are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which the University has legal responsibility.

Aim

As a charitable organisation Nottingham Trent University benefits from exemptions from many taxes. However, where taxation obligations exist the University is committed to comply in full with those obligations and to disclose in full all relevant information to tax authorities, whilst also trying to optimise its tax position so that funds available to support its charitable objectives are maximised.

Governance in relation to UK taxation

The principal executive and policy-making body of the University is the Board of Governors. Accordingly, the Board of Governors has overall responsibility for the Tax Strategy of the University.

The Board of Governors has delegated certain aspects of financial control to its Strategy, Policy, Finance and Resources Committee.

The day-to-day responsibility for taxation for the University and its subsidiaries are delegated to the Director of Finance. The University has a Central Finance team which works finance business partners to ensure that tax obligations and risks are managed appropriately.

Risk management

The University seeks to minimise its exposure to taxation risks through involvement of the finance department in all major transactions, whether new or on-going, and for any material changes in business. Financial Regulations set out the requirement for finance staff and University departments to seek clearance or involvement of the finance department where appropriate. Finance business partners support and advise the business to ensure compliance. The Central Finance team communicates changes in legislation and tax issues and treatments unique to the Higher Education sector to other members of the finance department.

The University’s finance department is staffed with appropriately qualified individuals, who undertake internal and external training and participate in various taxation, charity and higher education focused associations to maintain and develop their knowledge of taxation and keep up-to-date with changes in legislation, interpretation and best practice.

If the tax treatment of specific transactions or other matters is uncertain or requires external consideration or confirmation or involves a specialist area of taxation for which the University finance team does not have the necessary knowledge then the University seeks professional advice from suitably qualified, external advisors.

Internal control procedures and processes exist within the University finance departments and systems with the aim of ensuring taxation returns and submissions are accurate and complete. Taxation returns and submissions are subject to appropriate levels of internal review prior to their submission.

Attitude towards tax planning and level of risk

At all times the University seeks to comply fully with its regulatory and other obligations and to act in a way that maintains its reputation as an educational institute and charity that contributes positively to society, whilst also optimising its tax position by taking advantage of all available and appropriate tax reliefs, exemptions and incentives so as to maximise the funds available to further the University’s core activities and strategic aims as per its charitable mission.

Relationship with HMRC

The University aims to have a constructive and transparent relationship with HMRC. If the University undertakes significant, new transactions or new, material operations for which the taxation treatment is uncertain or if a change in legislation, interpretation or practice could impact an existing or past taxation treatment, the University seeks to obtain confirmation of such treatment from HMRC.

Any inadvertent errors in returns and submissions made to HMRC are fully disclosed as soon as reasonably practicable after they are identified.