16th May 2016 08:15
LONDON (Alliance News) - Marketing company Cello Group PLC on Monday said it has reached an agreement in principle with HM Revenue & Customs regarding a retrospective value-added tax and related penalties.
The agreement relates to historical fundraising activities delivered to Cello charity clients by a division of its Cello Signal business, the company said.
Cello said the agreement reached with the UK tax authority will mean it books a further GBP2.1 million headline charge in 2016 in addition to the GBP3.2 million provision made previously. The total charge, therefore, will be GBP5.3 million.
Cello said following consultation with HMRC, it is confident the charity business of Cello Signal will be compliant in the future with revised guidance issued by the UK taxman.
Shares in Cello were down 1.6% to 95.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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