Fair Tax Mark Statement of Westmill Wind Farm Co-operative Limited (October 2020)
This statement of Fair Tax compliance was compiled in partnership with the Fair Tax Mark and certifies that Westmill Wind Farm Co-operative Limited meets the standards and requirements of the Fair Tax Mark’s UK Small Business Standard.
Westmill Wind Farm Co-operative Limited 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 is the clearest indication we can give of being responsible participants in society.
We fulfil our commitment by seeking to pay the right amount of tax at the right rate, 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 we actually undertake in the course of our trade.
We will never seek to use those options made available by 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. As a result Westmill Wind Farm Co-operative Limited 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 information that users, including HM Revenue & Customs, might need to properly appraise our tax position.
The Westmill Wind Farm Co-operative Limited Secretary shall be responsible for overseeing the application of this policy.
The Board will review this policy annually to ensure that it is complied with.
Westmill Wind Farm Co-operative Limited is a co-operative society, originally established in 2004, for the benefit of its now 2,100+ members, with the principle activity of the generation and sale of electricity from renewable and low carbon sources.
The Westmill Wind Farm – where the clean renewable energy is generated from – is located at B4508, Watchfield, Swindon, SN6 8TH. The Registered Office address is Unit 26, Trinity Enterprise Centre, Furness Business Park, Barrow-in-Furness, Cumbria, LA14 2PN.
Westmill Wind Farm Co-operative Limited, had an average deficit before tax of £12,100 over the three years 2017 to 2019. Therefore, the average current tax charge over the three years 2017 to 2019 was £NIL.00. A more detailed breakdown of how the tax losses were utilised is shown in the below current tax, and total tax, reconciliation:
|Average deficit before tax||(£12,100)|
|Average corporation tax at expected rate (19%)||(£ 2,299)|
|1 Depreciation in excess of capital allowances||£ 50,253|
|2 Tax losses utilised||(£47,954)|
|Average current tax charge||£ 0|
|Average deferred tax credit||(£ 1,840)|
|Average total tax credit||(£ 1,840)|
In 2019, directors’ remuneration amounted to £2,000.
As at 31 December 2019, Westmill Wind Farm Co-operative Limited had a net deferred tax liability of £5,957 in respect of tax losses and accelerated capital allowances.
1 Depreciation in excess of capital allowances – The accounting treatment of capital assets is that they are depreciated over the asset’s useful economic life. This depreciation is expensed in the accounts and usually does not agree with what the tax treatment on those assets should be. This is because each asset should be depreciated according to its useful economic life (which can vary between assets) whereas capital allowances are set rules in tax law applied to the type of asset rather than the economic life of the asset (generally speaking). However, these differences between depreciation and capital allowances are only timing differences, as eventually, the accumulative depreciation and the capital allowances claimed will equal one another.
2 Tax losses utilised – tax losses from earlier periods can be carried forward and relieved against future surplus, so that the correct amount of tax is applied to the overall historic surplus generated, and not just for that period. Even though the accounts show a deficit for the current period, the add back of depreciation in
excess of capital allowances (above), would result in a taxable surplus. Therefore, some of the prior year tax losses have been utilised, so that overall, Westmill Wind Farm Co-operative Limited, is still in a deficit position and isn’t yet subject to tax. Once the tax losses have all been used, tax will then become chargeable on the surplus generated thereafter.