Lendology CIC

Fair Tax Mark Statement (February 2025)

This statement of Fair Tax compliance was compiled in partnership with the Fair Tax Foundation (“FTF”) and certifies that Lendology CIC (“the Company”) meets the standards and requirements of the FTF’s UK Small Business Standard for the Fair Tax Mark certification.

Our Tax Policy

The Company 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.  The Company 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.

Our Company Information

The Company is limited by guarantee, incorporated in England & Wales, and consequently does not have share capital.  There are no beneficial owners as the Company is not established or conducted for private gain: any surplus or assets are used principally for the benefit of the community.

The Company’s eight directors are also currently its members, and they make decisions either unanimously or by majority of votes.

For the year ended 31 March 2024, total directors’ remuneration amounted to £186,070, with the highest paid director’s remuneration being £72,097.

The registered office address of the Company is Heatherton Park Studios, Heatherton Park, Bradford On Tone, Taunton, Somerset TA4 1EU, which is also its trading and head office address.

Our Tax Disclosures

The average surplus before tax over the last three accounting periods ending on 31 March 2024 was £31,972. The expected tax on these average surpluses would be £6,075 (19.0%). However, our actual average current tax charge over this period was £6,645 (20.8%); and the reason for this being more than what would be expected, is explained below in the following current tax reconciliation with accompanying footnotes:

¹ Trading losses utilised – Tax losses from earlier periods can be carried forward and relieved against future surpluses, so that the correct amount of tax is applied to the overall historic surpluses generated, and not just for that period.  Once the tax losses have all been used, tax will then become chargeable on the surpluses generated thereafter.

² Expenses not deductible for tax purposes – 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.  Examples of such expenses are non-staff entertaining. 

³ Depreciation in excess of capital allowances – The accounting and tax treatments of fixed assets are different. For accounting, fixed assets are depreciated over their useful economic lives. For tax, there are specific rules on what can be claimed and when. These differences create a tax adjustment, which is only a timing difference, and we have accounted for these timing differences in our accounts (deferred tax). As at 31 March 2024, the Company had a deferred tax liability of £388 (2023: asset of £905) in relation to these fixed asset timing differences; and these should unwind in annual instalments over the useful economic lives of the assets that they relate to. As this is only a timing difference, the total depreciation charged in the accounts will eventually match the total capital allowances claimed in the tax returns.

⁴ Super-deduction capital allowances – From 1 April 2021 to 31 March 2023, UK companies investing in qualifying new plant and machinery assets can claim a 130% super-deduction capital allowance. This extra 30% allowance creates a permanent difference above the asset’s actual cost, which won’t be resolved by depreciation and capital allowances equalling each other over the asset’s life. As this 30% tax saving is a permanent difference, not a timing difference, it has been presented separately.