Alsco Linen Services Limited Group Tax Strategy
31 December 2019
Alsco Linen Service Limited is the parent company to the CLEAN group, with the primary trading operation within its subsidiary CLEAN Linen Services Limited. Alsco Linen Services Limited is owned by Alsco Inc, part of a Group headed by Steiner LLC based in Salt Lake City, Utah, USA and is a privately-owned textile services provider with over 100 years’ experience in the industry. We are one of the UK’s leading independent laundry companies providing linen and workwear rental services across England and Wales. We pride ourselves on offering a professional, high quality and customer focused service.
The CLEAN group’s business activities, wholly based in the UK, incur various business taxes including Income Tax, Corporation Tax, PAYE, NIC, VAT, Withholding Tax and Stamp Duty Land Tax. The taxes we collect and pay make a significant contribution in the community we serve.
We incorporate the CLEAN group’s strategy into our policies and procedures to ensure compliance with tax laws and regulations. This tax strategy, approved by the leadership team of Alsco Linen Services Limited, sets out the CLEAN group’s approach to conducting its tax affairs and dealing with tax risks for the year ending 31 December 2019.
The UK leadership team is responsible for the CLEAN group’s tax strategy and compliance with the laws, legislations and with shareholders’ best long-term interests. The tax risk management is regularly reviewed by our UK Finance team supported by external tax advisors. Our adherence to control procedures, laws and administrative rules is monitored by our Internal Audit Department and the Global Tax Director.
The CLEAN Group operates a system of tax risk assessment and controls as a component of the overall internal control framework applicable to the CLEAN group’s financial reporting system. As part of the internal controls, our policies and processes are reviewed annually by our external auditors and by our internal auditors from time to time. We seek guidance from our external tax advisors to ensure we are in compliance with the relevant tax laws and regulations. The tax authority is consulted in the event that we are uncertain how a particular tax law applies.
The corporation tax returns are prepared by the external tax professionals for review by our Finance staff on behalf of the UK leadership team. We have established policies and processes to govern the integrity of the financial data in the tax returns. This includes automated systems and on-going professional training and development for our internal staff. Our Finance staff are in regular dialogue with the wider management group to ensure that our tax obligations are properly considered in business decision making. The UK leadership team is ultimately responsible for ensuring the tax returns are filed on a timely basis and that all taxes are properly calculated and timely paid in accordance with the tax laws.
Tax Risks and Tax Planning
The CLEAN group adopts a low-risk approach to tax as far as is reasonably practicable and does not engage in artificial tax arrangements. Our tax contribution is aligned with the commercial activities of our operations.
Our processes and policies operate to ensure compliance with applicable laws and regulations and our employees are required to adhere to them and behave in accordance with the CLEAN group’s Code of Conduct. In relation to any specific issue or transaction, the UK leadership team is ultimately responsible for identifying and managing the risks having regard to the materiality of the amounts and obligations.
Tax is considered in all significant business decisions but we do not undertake any transactions where the primary purpose is realising tax savings. Our tax function provides appropriate input into business proposals to ensure a clear understanding of the tax consequences of any decisions made. When reviewing the tax risks associated with a specific decision we evaluate the impacts on our relationship with tax authorities, business reputation and the risk of penalties and interest.
We seek external tax advice on complex tax affairs including tax incentives, reliefs and processes in order to comply with the tax laws while achieving the best economic outcome.
Relationship with HM Revenue and Customs
We work in a collaborate, open and transparent manner with the tax authorities. Through use of the general helpline and external tax advisors, we seek to achieve early agreement of our tax position. We ensure that the tax authorities are provided with relevant information thereby confirming the integrity of our tax processes, returns and payments.
Our approach to tax has been published in accordance with paragraph 16(2), schedule 19 of the Finance Act 2016, and relate to our accounting period ended 31 December 2019.
List of entities covered by this Tax Strategy
- Alsco Linen Services Limited
- CLEAN Viking Holdings Limited
- CLEAN Viking Bidco Limited
- CLEAN Viking Acquisition Co Limited
- CLEAN Linen Services Limited
- The Brilliant Laundry Group Limited
- CLEAN Watford Limited
- Stevens Hatherley Holdings Limited
- Bcomp 497 Limited
- Paris Laundry Systems Limited