Westmill Wind Farm Co-operative Limited
Fair Tax Mark Statement (March 2024)

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 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. 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, 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.

Tax Information

The deficit before tax for the year ended 31 December 2022 for Westmill was £123,924. At UK headline tax rate of 19.0%, this would result in an expected tax credit of £23,546. Westmill’s current tax position for 2022 was achieving £NIL – and the reasons for this are explained below in the following tax reconciliation with accompanying narratives:

Westmill Wind Farm Co-operative Limited (2022-23)

1. 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, or should, be claimed. The differences between these treatments creates a tax adjustment.
2. 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.

Deferred Taxes

The difference between the accounting and tax treatments of fixed assets has created a deferred tax liability of £17,381 as at 31 December 2022.

This is a temporary difference which will unwind over the useful economic lives of the assets that it relates to. During 2022, a credit of £20,386 was released to our Income Statement – creating a negative tax charge of £20,386.

Directors' Remuneration

Each director is entitled to claim a fee of £500; therefore, all directors – including the Chair – are paid the same amount. In the past, some directors have chosen not to claim the fee that they are entitled to.