Bright Horizons Family Solutions UK Tax Strategy

The publication of this tax strategy is regarded as satisfying the statutory obligation under Paragraph 16(2) and Schedule 19 of the Finance Act 2016.

This page sets out a summary of the Tax Strategy for Bright Horizons Family Solutions Ltd (a subsidiary of BHFS One Ltd) and applies to all entities within the Bright Horizons Family Solutions group. In this strategy, references to ‘Bright Horizons UK’ are to BHFS One Ltd and all its subsidiaries. The active UK subsidiaries are providers of childcare throughout the UK.

Our tax strategy is reviewed annually. The International Finance Director and Director of Tax are responsible for management of the tax affairs of the group and are supported by a team of qualified tax professionals based in the UK and United States.

This strategy applies from the date of publication, until it is superseded. References to ‘UK taxation’ are to the tax areas within the UK which include:

• Corporate income tax
• Indirect taxes (VAT)
• Employment taxes (PAYE / National Insurance)
• Other applicable tax matters

As part of a multinational group (Group), we are aligned with and consistent with Bright Horizons Family Solutions Inc. guiding principles, code of conduct and tax policy.

Tax risk management

The day to day management of Bright Horizons UK tax affairs is provided by the UK finance team in consultation with the Director of Tax when appropriate.  Processes relating to different areas of tax are allocated within the finance team.  There are quarterly/annual reviews of activities and processes to identify key risks and requirements for any updates to controls in place. These key risks are monitored for changes in business and legislation, processes and controls are updated accordingly.

The tax strategy is focused on ensuring that the taxes of Bright Horizons UK are compliant, accurate, timely and strategically aligned, within the parameters of the Group’s strategic objectives. The strategy also requires that all tax obligations comply with the UK and other relevant jurisdictions tax laws.

The Bright Horizons UK operations fall under the Company’s internal control framework, along with the Tax function, and are regularly reviewed by the Group’s Internal Audit department.

External tax advisers have provided guidance and advice when there has been a specific area of technical expertise required, such as during acquisitions.

Bright Horizons UK utilises tax reliefs and allowances available in the manner in which intended by HM Revenue & Customs and statute. We do not engage in artificial tax arrangements.

Working with HMRC

It is Bright Horizons UK’s general policy to be transparent and proactive in all interactions with HMRC and any other governmental agency.

We have previously engaged with HMRC concerning Advanced Thin Capitalisation Agreement, with respect, fairness and cooperation.  All dealings with HMRC, and other tax authorities, are conducted in a collaborative and courteous manner.