This statement of Fair Tax compliance was compiled in partnership with the Fair Tax Foundation (“FTF”) and certifies that Ethical and Environmental Screening Services Limited (“Ethical Screening”) meets the standards and requirements of the FTF’s UK Small Business Standard.
Ethical Screening 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. Ethical Screening 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.
Ethical Screening is a private limited company, originally established in 1998, with the principle activity of the provision of ethical and environmental screening services.
Ethical Screening undertakes research and analysis into those non-financial aspects of corporate activity that concern the ethical investor and enables them to invest according to their principles.
The company is run by a dedicated team of responsible investment specialists with experience ranging from financial planning to environmental and social research. We are independent of influence from organisations and agendas, which aim to achieve particular social, environmental, or political goals. The range of issues we look at is determined entirely by the requirements of our clients. Our research and analysis determine whether a company is involved in a particular activity, and the magnitude and significance of that involvement. We are not a campaigning organisation, and we do not endorse or promote a particular opinion on any ethical issue.
The registered office address of Ethical Screening is: Formal House, 60 St. George’s Place, Cheltenham, Gloucestershire, GL50 3PN, which is also the trading address.
The beneficial owners of Ethical Screening, with more than 10% shareholding, are as follows:
- Michael Head - 41.5% with 81 ‘A’ Ordinary shares and 2 ‘J’ Ordinary shares;
- Lee Coates - 40.0% with 80 Ordinary shares; and
- Gerard Llewellyn - 10.0% with 20 B Ordinary shares
The average profit before tax for Ethical Screening over the three years 2018 to 2020 was £114,195; and the expected tax charge on these profits would be £21,697 (19.0%). The actual average current tax charge over the period was £21,376 (18.7%) – and the reason for the slight difference is explained in the following current tax reconciliation:
- Average profit before tax: £114,195
- Average expected corporation tax (19%): £21,697
- Disallowable expenses: £4631
- Capital allowances in excess of depreciation: (£784)2
- Average current tax charge (18.7%): £21,376
1 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. Common examples of such expenses are: client entertaining; and fines and penalties.
2 The accounting treatment of capital assets is usually different than the tax treatment allowable. This is because, in the accounts, an asset is depreciated over its useful economic life; whereas capital allowances are set rules in tax law applied to the types of assets. The differences, however, between the depreciation rate charged in the accounts and capital allowances claimed in the corporation tax return - are only timing differences - as eventually, the accumulative depreciation and the capital allowances claimed will equal one another.
As at 30 September 2020, Ethical Screening had no deferred tax assets or liabilities on its balance sheet, and therefore had no movements in deferred tax expensed or credited to the income statement.
Transactions with Directors
For the year ended 30 September 2020, directors remuneration (consisting of salary, pension contribution, and employment benefits) amounted to £44,180.