This is our tax strategy for the financial year to 28 February 2024. 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 are committed to meeting all our legal requirements and behave responsibly
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 are also committed to being consistent with the spirit of the law by:
Giving due consideration to the intentions of the government;
Only entering into transactions which support genuine economic and 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 (the Code of Practice) in full. If a proposal does not fall within the Code of Practice, we will not adopt or proceed with that proposal.
We provide sustainable value for our stakeholders
We take advantage of available tax reliefs and incentives where we can and it’s appropriate to do so. This allows us to provide sustainable value to our shareholders, as well as invest in developing innovative products. This all helps us to provide great service to our customers.
We apply these principles not only to our own tax position, but also to what we offer 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 spirit of or the letter of the law.
We manage our tax risks responsibly
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.
We’re open and transparent with tax authorities
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 zero tolerance for tax evasion
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.
We take our tax strategy seriously
Our tax strategy is owned and overseen by our Executive Committee, and it's reviewed and approved annually by our Board. Our tax strategy is integral to the way we operate and is embedded into our daily operations via our Tax Policy, processes and controls.
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.