Rightmove’s tax strategy

Rightmove | 2020

Rightmove’s tax strategy | 2020

1 rightmove.co.uk

Rightmove’s tax strategyOur tax strategy encapsulates the way Rightmove does business - we believe passionately in doing things the right way and we are therefore committed to paying our fair share of tax.

Our aim is to manage efficiently the tax and cash cost to the Group of doing business, within the ambit of all applicable laws, whilst ensuring our tax affairs are transparent and sustainable for the long-term.

Income tax expense

£213.6m

£198.3m 19.1%

19.0%£40.5m

£37.8m

Rightmove’s tax principles

Tax highlights 2018 to 2019

As a Group we are guided by the following tax principles:

Pay the right and proper amount of tax, in the right place at the right time.

To ensure the integrity of all reported tax numbers and timely compliance with all relevant statutory tax obligations.

Always consider Rightmove’s corporate and social responsibilities, reputation and brand.

Operate appropriate tax risk governance processes, including Audit Committee and Board oversight.

To be recognised as a vital business partner by our stakeholders and to facilitate the growth and development of the Group’s business activities in a tax efficient manner.

Consider the potential tax implications as part of every major business decision.

Not undertake transactions whose sole purpose is to create an abusive tax result or which are outside the Group’s risk appetite.

To build open and constructive relationships with tax authorities and to undertake all dealings with tax authorities, government bodies and other related third parties in a professional, courteous and timely manner.

To work to provide enhanced and balanced disclosure and communication of our tax affairs to investors and other stakeholders.

2 rightmove.co.uk

Rightmove’s tax strategy | 2020

Rightmove’s tax contributionIn 2019 our total tax contribution to the UK Exchequer was £106.8m (2018: £104.5m). This includes not just corporation tax but also employee taxes and VAT and other business taxes.Our total UK tax contribution by type of tax in both years is set out below:

£0.7m £0.4m

£18.0m £50.4m

£37.3m

£0.6m £0.6m

£45.6m£24.8m

£32.8m

Rightmove has a conservative appetite to taxation risk which is governed by its guiding tax principles set out on page 1.

We remain committed to paying our fair share of tax as part of how our business contributes to society and continue to be transparent in the way we manage our tax affairs with due consideration given to Rightmove’s corporate and social responsibilities, brand and reputation when considering tax initiatives, together with the legal and fiduciary duties of directors and employees of the Group

Rightmove has a strong track record of innovation and where activities qualify as research and development within the meaning of the Department of Business, Innovation and Skills R&D Guidelines, we claim R&D tax relief.

Rightmove currently operates “salary sacrifice” arrangements in relation to childcare vouchers, employer contributions to a registered pension scheme, payroll giving, flexible holiday benefit and cycle to work. All these arrangements are permitted by HMRC.

Total Tax Contribution

2018

Our taxation risk appetite and attitude to tax planning

Employment taxes Stamp duty Taxes on profitsBusiness rates VAT

2019

3 rightmove.co.uk

Rightmove’s tax strategy | 2020

Advisory and technical tax support is also provided by professional accounting and tax advisors and various legal firms with the required skills. The use of advisory firms is strictly controlled by and regularly reported to the Audit Committee.

Policies are kept under continuous review and are regularly revised in the light of factors such as material changes within the Group or tax legislation. In addition, the Audit Committee receives regular updates from the Finance Director on the Group’s tax position.

The Finance Director is required to ensure that:

2 The tax returns are complete and accurate with full and proper disclosure of any issues that could potentially be contentious.

1 All necessary tax returns are prepared and submitted on a timely basis.

4 Tax authority enquiries or audits are properly managed to maintain constructive relationships with HMRC, the UK tax authority.

3 The correct amount of tax is paid on a timely basis.

We are committed to responsible corporate behaviour. Rightmove recognises the need for processes and procedures to govern the way we undertake our business. This includes the reporting and payment of tax. The Group’s tax governance works through a set of documented standards and procedures which cover Rightmove’s tax strategy, tax policy and operational aspects of tax.

Our Board has ultimate responsibility for preparing the Annual Report and Financial Statements and for ensuring that tax risk is appropriately managed. Our Finance Director (who is our designated Senior Accounting Officer) has day to day responsibility for tax governance and strategy. In discharging this responsibility she is supported by the Group’s Head of Finance and her team who hold a combination of accounting qualifications and tax experience.

Our tax governance framework

4 rightmove.co.uk

Rightmove’s tax strategy | 2020

How we respond to changes in tax lawsMaking tax digital (MTD) – a new indirect tax development

Digital Services Tax (DST)

How we work with tax authorities

As part of Rightmove’s tax risk management framework, the finance team monitor changes in the tax environment to ensure we remain compliant with UK tax laws.

MTD is being introduced by HMRC with an aim to transform tax administration so that it is

In April 2020 a new Digital Services Tax will come into effect in the UK. DST is levied at a rate of 2% of revenues with an allowance for the first £25m of revenues. It applies to businesses that provide a social media platform, search engine or an online marketplace to UK users who have worldwide

We believe in open and constructive dialogue with tax authorities. We aim to have proactive and real time discussions with HMRC about our business with the aim of transparently managing our tax affairs and minimising the risk of

Our published UK tax strategy, which has been approved by the Board, satisfies Schedule 19 of the UK Finance Act 2016, in respect of our financial year ending 31 December 2020.

more effective, efficient and easier to get their tax right. MTD should also play an important role in helping to ensure that the appropriate level of tax is paid as tax authorities will now be able to see transaction level data. MTD is initially being introduced for VAT in the UK, but other taxes are expected to follow. MTD for

revenues from these digital activities of more than £500m and more than £25m of these revenues are derived from UK users.

This revenue threshold is significantly higher than our current total Group revenue of

challenge, dispute or damage to Rightmove’s credibility. We believe working collaboratively with HMRC helps to deliver benefits for both parties. For HMRC, early resolution of issues ensures the right amount of tax is paid at the

VAT went live in the UK on 1 April 2019 for most VAT registered businesses with Rightmove’s staging date being 31 December 2019.

In January 2020 Rightmove successfully submitted its first VAT return via the HMRC MTD portal.

£297.3m so we are currently outside the DST regime.

We continue to monitor developments around digital taxes both in the UK and globally.

right time, improving their cash flows and funding position and avoiding costly investigations. For Rightmove working with HMRC helps to reduce the risk of unexpected surprises and time consuming disputes down the line.