Fair Tax Mark Statement for Westmill Wind Farm Co-operative Limited (May 2025)

This statement of Fair Tax compliance was compiled in partnership with the Fair Tax Foundation (“FTF”) and certifies that Westmill Wind Farm Co-operative Limited (“Westmill”) meets the standards and requirements of the FTF’s Solely UK-based Business Standard for the Fair Tax Mark certification.

Tax Policy

Westmill is committed to paying all the taxes it owes in accordance with the spirit of all tax laws that apply to its operations. We believe 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 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. Westmill 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, while 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 and tax filings will be prepared in compliance with this policy and we will seek to provide all the information that users, including HM Revenue & Customs, might need to properly appraise our tax position.

Tax Information

Our surplus before tax for the year ended 31 December 2023 was £25,977. The expected tax charge on this surplus at the UK headline rate of 23.52% would be £6,110. Our actual current tax charge for the year ended 31 December 2023 was £Nil; and the reasons for this being lower than expected are explained below in the following tax reconciliation and accompanying footnotes:

Westmill Wind Farm Co-operative Limited (2023-24)

1) Depreciation in excess of capital allowances - The accounting treatment of fixed assets differs from the tax treatment. For accounting purposes, fixed assets are depreciated over their useful economic lives. For tax purposes, there are specific rules to what can be claimed and when, depending on the type of asset (capital allowances). The differences between these treatments can often create a tax adjustment, which is only a timing difference, as eventually, the total capital allowances claimed on our tax returns will equal the total corresponding depreciation charged in our accounts on eligible assets.

We have made a provision for these temporary timing differences in our accounts (deferred tax). As at 31 December 2023, Westmill had a deferred tax liability of £39,898 on its Statement of Financial Position. This liability will unwind in annual  instalments over the economic lives of the assets that it relates to. During the current period, a charge of £22,517 was released to our Income Statement– creating a total tax charge of £22,517 (£Nil current tax, plus £22,517 deferred tax
charge) in our accounts.

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