Dreams group tax strategy
This document sets out the tax strategy of the Dreams group which incorporates the following companies:
- Dreams Holdco Limited
- Dreams Topco Limited
- Dreams Limited
- Hyde & Sleep Limited
- The Bed People Limited
The company’s principal activity is the retail sale of beds along with associated products, services, and franchising activities; supported by a manufacturing capacity within the UK. Dreams are backed by Tempur Sealy International with the principal activity occurring in Dreams Limited. Dreams Holdco Limited and Topco Limited are holding companies, while Hyde and Sleep Limited and The Bed Peoples Limited are dormant.
Dreams’ activities generate a variety of taxes. The group pays corporate taxes, business rates, stamp duty and land tax, import duties and employment taxes. We collect employee taxes and VAT.
This strategy applies to the financial year ending 24th December 2021.
The Dreams group considers publication of this strategy as complying with the duty under Schedule 19 of the Finance Act 2016.
The tax strategy is approved by the Board each year and owned by the Board.
The Chief Financial Officer is responsible for ensuring that policies and procedures are in place to support the company approach.
The tax strategy is supported by the following key principles:
Take tax positions within the letter and spirit of applicable laws.
Recognise that their first responsibility is to the investors.
Take advantage of available incentives and reliefs in relation to tax where appropriate.
Recognise that they also have a responsibility to their employees and the communities in which they operate and manage their tax function to complement the company’s goal of building a sustainable business.
Payments are made accurately and on time.
Where they are uncertain of a particular tax position or require expertise and support in decision making, they use external advisers.
The group does not condone either personal or corporate tax evasion under any circumstances.
The Board is responsible for the management of tax risk with delegation to the Chief Financial Officer for the appropriate accounting processes and controls. They identify, manage and assess tax risks and account for them appropriately. Dreams seek to reduce the level or tax risk arising from their operations as far as possible by ensuring reasonable care is applied in relation to all processes which could affect their compliance with their tax obligations. This includes ensuring the correct training is provided for employees involved in tax processes. External auditors provide an opinion on the annual accounts which includes tax amounts and disclosures.
Dreams maintains an open and honest dialogue with the tax authorities such as HMRC disclosing all relevant facts and circumstances in a timely manner. There is regular engagement with the customer relationship manager at HMRC to discuss UK tax affairs and any ongoing matters.
Dreams will, where possible, obtain agreement in advance from the tax authorities before undertaking transactions or amending current applications of tax legislation.
Where they take a tax position which the company feels is defensible, they will work with the tax authorities to resolve any disagreements and potentially litigate if appropriate.