UK Tax Strategy

Emma Sleep UK Limited

Registered Office Address:30 OLD BAILEY, LONDON, UNITED KINGDOM, EC4M 7AU

Company Number: 13080848

Director: Manuel Müller

This UK tax strategy has been published in accordance with Schedule 19 of Finance Act 2016 and is effective for the year ended 31 December 2023. This tax strategy applies to Emma Sleep UK Limited (“Emma Sleep”, “the Company”) and was approved by the Board of Directors on 19th July 2024.

The ultimate parent company of Emma Sleep is Emma Sleep GmbH, a company incorporated in Germany.

Emma Sleep GmbH was founded in Frankfurt in 2015 and quickly established itself as an award-winning developer of the “Emma Mattress”.  Since then, the wider Group has expanded to 33 countries over 4 continents. 

The Company is involved in the sale and distribution of mattresses (and other bedding accessories) to retail business partners within the UK and, as of early 2024, directly to customers through its flagship store in London.

How we manage our tax risks

The Group has established and maintains robust policies and compliance processes.  The Global Head of Tax has overall responsibility for the management of UK tax risks. The Global Head of Tax is supported by a group in-house tax team and external advisers.  The UK tax compliance affairs of the Company (including corporate tax, VAT and payroll) are managed on a day-to-day basis by external tax advisors who report to a dedicated and appropriately qualified Tax Manager in the group’s in-house tax team.

Tax risk management, at group level, is subject to the same level of internal control and review as the rest of the Group’s business. The Global Head of Tax, the relevant member of the group tax team and the external advisors communicate with each other regularly on matters related to UK tax legislation, UK tax compliance and business activity which may give rise to tax risks or impact.  Where UK tax risks are identified, these will be escalated to an appropriate level for review and input. Any significant risks will be raised and discussed with the Director of the Company. 

Emma Sleep strives to be fully tax compliant, paying the correct amount of tax in a timely manner.  Emma Sleep is subject to various UK taxes, including corporation tax, employment taxes and VAT.

Attitude to tax planning and risk

Emma Sleep does not participate in aggressive tax planning or tax avoidance schemes and does not engage in arrangements that have no commercial or economic substance. 

Emma Sleep’s appetite for risk, including tax risk, is low. Planning or structuring is undertaken for commercial reasons only.

Where Emma Sleep does not have the appropriate internal expertise, or where there is uncertainty in relation to the interpretation or application of tax legislation, the Company seeks advice from external advisors to support the Company’s decision making and to ensure all relevant tax implications are understood and all necessary tax compliance, reporting and disclosure requirements are met.

It operates with transparency and is committed to observing all applicable tax laws.

Emma Sleep will only claim tax reliefs and incentives which are appropriate to its business operations and which are generally available to businesses.

Level of risk the business is prepared to accept for UK tax

Emma Sleep seeks to be fully compliant in its tax affairs and takes a conservative approach to tax risk.

The Company works closely with its external advisors to ensure that it is kept up to date with developments in UK tax compliance and how these impact on Emma Sleep’s UK tax profile and obligations.

The assessment of tax risk is integrated within the group’s broader risk management framework.  Our policies and governance structure are signed off and reviewed by the Board and operate to ensure compliance with UK tax laws and regulations and are designed to identify and mitigate material tax risks.

How we work with HMRC

Emma Sleep is committed to being professional and transparent in all of its dealings with HMRC. The Company is committed to making accurate and timely disclosures and filings to the UK tax authorities, and endeavours to rectify any errors or mistakes as soon as they arise.