Automatic Data Processing, Inc. (“ADP” or “the Group”) – Tax Strategy for the year ended 30 June 2027

This UK tax strategy, approved by the Board of Directors of the relevant UK subsidiaries of Automatic Data Processing, Inc. (as listed in Appendix A) (“UK Companies”) effective for the financial year ending on 30 June 2027 sets out ADP’s UK policy and approach to conducting its tax affairs and dealing with tax risk, and is made available to all ADP stakeholders, in accordance with paragraph 19(2) and (22)2 Schedule 19 to the Finance Act 2016.

Overview of the Group’s operations

ADP is a provider of human resources management software and services, employing 67,000 people worldwide. We provide cloud-based human capital management solutions that integrate HR, payroll, talent, time, tax and benefits administration as well as a leader in business outsourcing services, analytics and compliance expertise. Further information about us can be found on our website www.adp.com.

 Our tax strategy is built on the foundation of one of our core values, ‘Integrity is everything’ where we conduct our business with the highest level of integrity. Accordingly, we are a responsible taxpayer and comply with all applicable tax laws.

a. The approach of the Group to risk management and governance arrangements in relation to UK taxation

The ultimate responsibility for the Group’s tax strategy lies with the Board of Directors of the UK Companies.

The Board of Directors of each legal entity has a duty to ensure that risk is managed and that appropriate procedures and controls are in place. The Directors are also responsible for the day to day management of local tax obligations.

The Group and its entities are supported by a global team of appropriately qualified finance and tax in-house tax experts led by the SVP, Corporate Tax, who reports to the Chief Financial Officer. ADP is also supported by external tax advisors when required for local tax expertise.

With respect to the UK companies and UK taxes, ADP is committed to meeting its legal and regulatory requirements, including filing applicable tax returns and making required tax payments when legally and properly due. The Directors, who have oversight of the UK companies, communicate any significant tax-related matters to the global tax team as needed.

The UK Companies are supported by in-house tax experts based in Paris and the US who cover the EMEA region. The support provided includes transfer pricing, major projects which may have tax implications, records maintenance and completion of tax returns. All returns and other submissions are checked by the Head of Accounting (or another appropriate individual) before filing.

The UK Tax Strategy should be read alongside the group’s global Code of Business Conduct and Ethics, financial controls framework and enterprise risk management processes. UK tax matters are managed consistently with the Group’s global governance standards whilst taking account of UK legal requirements.

b. The attitude of the Group towards tax planning (so far as affecting UK taxation)

The Group adopts a prudent approach to tax planning whilst at the same time, supporting the strategy and operations of the business.

In doing so, we are committed to fulfilling our legal obligations therefore adhering to tax laws in the territories in which we operate.

In the event of complexity and uncertainty we seek advice from our external tax advisors to ensure we remain compliant.

c. The level of risk in relation to UK taxation that the Group is prepared to accept

We consider that we have a low tolerance for tax risk and we seek to minimise the risk of uncertainty and tax disputes.

We aim to minimise risk and actively seek to comply with all applicable laws and regulations. Our management and approach is designed to help maintain a low level of risk and support our core values. The Group’s tax department actively and continuously identifies and monitors tax risks so they remain aligned to the operational and strategic objectives. If any risks are identified, the Group is supported by the in-house tax experts and/or external advisors to manage these appropriately.

d. The approach of the Group towards its dealings with HMRC

ADP adopts an open and transparent approach in working with HMRC. We work collaboratively and respond to information requests in a timely manner. We are committed to making accurate disclosures in all our tax related filings, submissions and correspondence with HMRC. Where needed, we look to discuss and disclose any matters that arise directly with HMRC and seek resolution with HMRC in as efficient a manner as possible.

This UK Tax Strategy has been approved by the Board of Directors of each of the UK Companies in September 2026 and applies for the financial year ending 30 June 2027.

Appendix A – List of UK Subsidiaries of Automatic Data Processing, Inc.

  • ADP Chessington Pension Trustees Limited
  • ADP Network Services Limited
  • Automatic Data Processing Limited
  • S.I. (U.K.) Limited
  • OneClickHR Limited
  • Whistler Acquisitions Limited
  • Workforce Software Ltd
  • WASP Management Software Limited
  • Workplace Systems International Limited