Tax Strategy statement

Purpose

The purpose of this document is to set out the UOS Group’s Tax Strategy in accordance with HMRC’s guidance specifically covering:

• Risk Management
• Tax Planning, and
• Approach towards dealings with HMRC

The UOS Group is headed by the University of Sheffield (“the University"), a UK exempt charity, established by Royal Charter in 1905. It meets the definition of a charitable company for UK Corporation tax purposes.

The UOS Group is primarily engaged in teaching, research and innovation activities. 

The University also undertakes commercial activities through a number of subsidiary companies where considered appropriate, including one overseas entity. The University’s subsidiaries and associated companies are liable to Corporation Tax in the same way as any other commercial organisation.

This Tax Strategy statement covers all UK taxes, principally VAT, Corporation Tax and employment taxes. Any reference to “tax”, “taxes” or “taxation” are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which the University has any legal obligations. For the avoidance of doubt this includes custom duties and import VAT on the movement of goods across borders.

Aim

The UOS Group’s values encompass being ambitious and striving for excellence in all that we do. We are responsible for our people and the wider world, and are open and transparent about the decisions we make (Our vision and strategic plan). For tax this translates to ensuring that in all material ways we pay the right amount of tax at the right time in compliance with  our obligations, including disclosure to the tax authorities, whether in the UK or overseas. 

Risk management

The UOS Group has clearly defined lines of responsibility for its tax affairs with decisions being taken at an appropriate level. Ultimate responsibility for the tax affairs of the UOS Group lies with The Council of the University, advised by the Chief Financial Officer. Day to day responsibility for implementing the Tax strategy sits with the Head of Tax, who reports through the Commercial Director to the Chief Financial Officer. 

The University manages its overall financial risk to a low position and has a very low risk appetite for activities that could jeopardise our compliance. This translates to a low risk tax strategy both in the UK and internationally. 

We structure and conduct our activities in a manner which is based on achieving our charitable objectives in the most commercial and economic way. The operations of the University and its subsidiaries are varied and sometimes complex. This naturally drives some inherent level of complexity in its tax affairs. Managing the UOS Group’s tax affairs across all areas of the organisation and recognising the risk of error or omission within those processes is key to ensuring tax compliance.  

The UOS Group’s approach to implementing processes for the management of Tax Risks is based on an assessment of the likely occurrence and impact of each Tax Risk. 

The relevant tax law and HMRC guidance is applied, and external advice may be sought to support the UOS Group’s decision making process, where required.

When reviewing the Tax Risks associated with a specific decision or action, the UOS Group ensures that the following are considered:

• Compliance with UK and International tax and charitable legislation.
• The requirements of our related financial regulations or procedures.
• The tax benefits and impact on the University’s reported results compared to the resource and financial costs involved, including penalties and interest.
• The maintenance of the UOS Group’s reputation.
• The University will not enter into any transaction where the main purpose is to gain a tax advantage.

A key part of our tax risk management processes is ensuring our tax and finance team are sufficiently resourced and comprise suitably qualified and experienced personnel. Our tax  staff are all members of the British Universities Finance Directors Group (BUFDG) tax group, and are encouraged to actively attend and participate in relevant BUFDG training sessions and discussions, as well as wider CPD activities. 

The tax team provides regular formal and informal training to the wider university community to ensure compliance requirements are widely understood, and encourage the open sharing of issues and quick resolution of queries arising. 

External professional advice is sought where the tax treatment of specific transactions is material and uncertain, requires external consideration or confirmation, or requires specialist knowledge. 

Tax planning

The UOS Group’s tax planning aims to support the needs of the UOS Group by ensuring that its UK and International tax affairs are carried out in the most tax efficient manner whilst remaining materially compliant with all relevant tax laws. 

Our tax team is involved in decision making processes and provides appropriate input into significant business proposals to ensure a clear understanding of the tax consequences of such decisions. Where the amounts are material and the tax treatment of a specific transaction is uncertain or open to interpretation, external advice will be sought to support the UOS Group’s decision making process.

Approach towards dealings with HMRC

The UOS Group is committed to the principles of openness and transparency in its approach to dealing with HMRC and maintaining its Low Risk rating.  The UOS Group therefore commits to:

• Make fair, accurate and timely disclosure in correspondence with HMRC and on its returns, and respond to queries and information requests in a timely fashion.
• Seek to resolve issues with HMRC in a timely manner, and where differences arise, work with HMRC to resolve issues by agreement where possible.
• Be open and transparent about decision-making, governance and tax planning.
• Take reasonable care that transactions are structured to give a tax result which is compliant and not contrary to the intentions of the law.
• Interpret the relevant laws in a reasonable way, and ensure transactions are structured consistently.

This tax strategy relates to the Financial Year ending 31st July 2025, has been approved by the Director of Finance on 4 September 2025 and UEB on 7 October 2025 and will be reviewed annually.