Coventry Building Society’s Newton: ‘Tax can be pivotal in many business decisions’

Fair Tax Leaders features senior professionals from across the Fair Tax Mark accredited business community.

Here, Coventry Building Society Senior Manager Finance Ops and Controls Claire Newton discusses the evolving role of the tax function and the benefits of increased reporting requirements.

Coventry Building Society are the UK’s second largest building society and were first accredited in 2022. They were founded in 1884 and provide a range of savings products.

Tell us about your professional journey. What first drew you to work in this field and how did you come to work in your current role?  

I trained as a Chartered Accountant and as soon as I qualified decided to specialise in tax. I liked the fact there was an answer rather than the judgmental views of accounting and audit standards. I also enjoyed helping people completing their tax declarations and getting it right for them.

I moved out of practice about 15 years ago and became the UK Tax Manager for Carlsberg UK where I enjoyed the cut and thrust of an FMCG company as well as getting involved in a Europe-wide group restructure for a couple of years. 

However, something was missing and I wasn’t quite sure what it was. When I was approached about the role at Coventry Building Society I realised it was the people-orientated aspect I was missing – caring for our members and colleagues alike, and doing the right thing by them.

How has the role of the tax or finance team changed in this time, especially in relation to stakeholder expectations around fair tax and corporate transparency? 

When I first started in tax, it was very much a technical, number-crunching role. This has now evolved into being a trusted partner for the business – it’s almost taken as a given that the tax can be calculated and reported correctly. Tax can be pivotal in many business decisions and needs to be understood upfront by all those involved, that’s where the tax partnering can make the most difference, and where our stakeholders now expect our value to come from.

What drives your business to pursue responsible tax conduct and gain the Fair Tax Mark?  

Coventry Building Society’s priority has always been based on meeting the needs of its members, and doing the right thing. Part of this is to be fair, open, and honest in all that we do. Having the Fair Tax Mark accreditation demonstrates this and enhances our attraction to those customers who want a financial institution who is fair, caring, and transparent.

In addition to this, the financial services sector has been renowned in the past for its excess profits and the Fair Tax Mark demonstrates that the Society takes its social responsibilities seriously by paying the right amount of tax to the authorities, which is mutually beneficial to all. Because we care about making life better, not only for our members, but for everyone across society.

See also: – Sector special: Fair tax helps building societies meet ‘higher expectations’ of social responsibility

What would your advice be to other professionals who are thinking of applying for the Fair Tax Mark?  

Do it!  It shows to your customers and key stakeholders that you are taking your social responsibilities seriously by being open and honest. The Fair Tax Foundation team have been very easy to work with in getting us through the accreditation. During the process the Fair Tax Foundation helped us to enhance our reporting to provide even more transparency, as well as improving our tax strategy overall. I also believe that it shines a light with the tax authorities to show we are committed to doing the right thing.

What are your thoughts on the future of fair tax and corporate transparency? 

Corporate transparency is very quickly becoming part of the reporting requirements of a business, and fair tax is of course part of that. The larger businesses had already started on this journey with the requirement to publish their tax strategies a few years ago and I expect that the additional requirements, arising from BEPS and Pillar 2 in particular, has ramped up the activity towards tax transparency. It can only be a good thing for investors, stakeholders and members alike as their ability to scrutinise the reporting increases.

What one word or phrase would your team use to describe you?

I hope it is that I’m open and honest, and try to do the best for my team.