HMRC Tax Approach Disclosure

Updated for the financial year-ending 31 December 2025

About Epic
Epic Systems Corporation is a US based healthcare software company. Almost all of our 12,700 US based employees work at our headquarters in Verona, Wisconsin, which is just outside of Madison—the home of the University of Wisconsin.

Virtually all of our US based employees work at our Verona campus. We develop software to help people get well, help people stay well, and help future generations be healthier. We license our software to NHS Trusts, hospitals, clinics, and other organizations involved in healthcare. Epic’s customers include 16 healthcare organizations in the UK. Support is provided through our wholly-owned subsidiary, Epic Bristol Limited. Epic Bristol was organized in the UK on 5 April 2016.

Management of Tax Risks
Epic and Epic Bristol have 3 main areas of tax compliance in the UK:

  • Collection and remittance of VAT to HMRC.
  • Compliance with all employee payroll tax requirements.
  • Timely filing of annual corporate income tax returns and remittance of tax for Epic Bristol.

Epic works with local accounting firms and other advisors for assistance with the above matters. There are three individuals with primary responsibility for Epic Bristol, one each in Financial Reporting (Accounting/General Ledger), Tax, and Payroll. These individuals review tax and financial reporting filings and are responsible for the initial evaluation of tax issues as they arise. Non-routine and significant tax issues are reviewed by the Chief Tax Officer and the Chief Financial Officer. Highly material tax issues are reviewed by the CTO, CFO, and more senior management at Epic, as needed.

Attitude towards Tax Planning
Epic generally seeks outside tax advice to help ensure we understand and comply with applicable local-country tax requirements. In the UK and other non-US jurisdictions our primary activity is licensing and support of our software.

Epic has a straightforward business structure. Our software is developed in-house and licensed to customers either directly or through local-country subsidiaries. Most of the business activity and assets reside in the US parent. We generally organize a local country entity to serve our customers when we enter a new country. We have several subsidiaries for different business lines such as data hosting services or wind generation turbines. Epic does not use an intermediary licensing entity or intercompany debt arrangements. We are a research-and-development-centric company.

Epic and Epic Bristol’s Tax Risk
Epic Bristol is a wholly-owned subsidiary of Epic. We are proud to be a privately-held employee-owned company. This allows us to make decisions and prioritize development based on what is right for our customers rather than the goals of outside investors. We evaluate tax issues using the same approach we do for software development and service decisions—we consider the relevant factors and reach a reasoned resolution.

Working with HMRC and Other Tax Authorities
We cooperate with inquiries and notices in a timely fashion and on a professional basis. When HMRC publishes guidance on tax matters impacting Epic Bristol or related entities, we review and evaluate, seek outside advice as necessary, and comply appropriately.

Our statement is intended to satisfy the UK tax strategy publication requirement under paragraph 16(2) of Schedule 19 to the Finance Act 2016.

 

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