This is our tax strategy for the financial year to 28 February 2023. We intend its publication to fulfil our obligations under Paragraph 16(2) Sch 19 FA 2016. This tax strategy applies to all Monzo corporate entities.
At Monzo our mission is to make money work for everyone. The tax we pay helps to fund the public services that we all rely on. As a responsible business, we’re committed to doing the right thing for society, and this approach is reflected in our tax strategy. We file our tax returns and pay our taxes in line with both the spirit and the letter of the law, and we don’t engage in artificial tax planning just to cut our tax bill. We don't offer our customers products that have a known tax benefit which is not consistent with the intentions of the government, and we have a zero tolerance policy on tax evasion.
We meet all our legal requirements and behave responsibly
We adhere to the letter of the law. We’re committed to ensuring full compliance with all statutory obligations and tax laws, and paying the right amount of tax in the right place at the right time. This applies to all taxes, in all jurisdictions.
We pay tax not only in line with the letter of all relevant laws and regulations, but also the spirit of them by:
- Making sure we're taking into account the intentions of the government;
- Only entering into transactions which support genuine commercial activities; and
- Making sure that transactions have a tax result that is consistent with the underlying economic consequences.
Put another way, we won’t engage in any artificial tax planning just to cut our tax bill.
We adopt HMRC’s Code of Practice on Taxation for Banks in full.
We take advantage of available tax reliefs and incentives where we can. This allows us to maximise long term shareholder value, as well as invest in developing innovative products. This all helps us to provide great service to our customers.
We will offer our customers tax efficient products sometimes, like ISAs. However, we won't offer our customers products that have a known tax benefit which is not consistent with the intentions of the government.
We have a low appetite for tax risk, and strive to ensure we have certainty in our tax obligations.
We make sure we have the right people, processes, controls, policies and systems in place to manage the tax risks that come with running a bank. We have clear reporting lines, and all significant new products, transactions or business proposals require sign-off from our Head of Tax.
Where we feel there is significant uncertainty or complexity in relation to a particular tax risk, we seek advice from external experts.
We are aware of our obligations under the Senior Accounting Officer (SAO) regime and have implemented a robust framework to ensure compliance with these rules, including appointing our Chief Financial Officer (CFO) as the SAO.
Transparency is one of our core values, and this extends to our interactions with tax authorities:
- We're open and transparent in our dealings with tax authorities
- We aim to provide prompt, accurate, complete and helpful answers in response to any tax authority queries or requests for information
- We maintain a standard of full disclosure in relation to all of the above, as well as in our filings
We have no tolerance for any activity relating to the criminal offence of tax evasion, and we're committed to preventing the facilitation of tax evasion.
Our tax strategy is owned and overseen by our Executive Committee, and it's reviewed and approved annually by our Board Risk Committee.
The Tax Squad share monthly tax compliance Key Risk Indicators (KRIs) with the Finance Governance Group. Any breaches may be escalated through various committees, ultimately to the Board.