15 Jun What is the HMRC?
HM Revenue and Customs (HMRC) is the UK government agency responsible for collecting taxes and enforcing tax laws. The department was formed in 2005 following the merger of Inland Revenue and HM Customs and Excise.
HMRC’s primary duty is to make sure that individuals, businesses, and other organisations pay the right amount of tax. They also have a responsibility to ensure that tax evasion and avoidance are prevented by enforcing tax laws. HMRC also manages tax credits, child benefit, and national insurance contributions.
The department is responsible for collecting income tax, corporation tax, capital gains tax, inheritance tax, value-added tax (VAT), and stamp duty. They are also in charge of administering tax relief schemes, including Research and Development (R&D) tax relief, Enterprise Investment Scheme (EIS), and Seed Enterprise Investment Scheme (SEIS).
HMRC manages self-assessment, which means that taxpayers are responsible for calculating their taxes and filing their tax returns accurately and on time. HMRC also works with employers to ensure they are complying with payroll taxes and National Insurance contributions.
HMRC is also responsible for preventing tax fraud and evasion. The department has a range of powers that enable them to investigate taxpayers, gather evidence, and impose penalties or legal action for non-compliance. They also work with other agencies to clamp down on tax evasion and fraud both domestically and internationally.
Another important function of HMRC is to manage Customs and Excise duties. This involves working with businesses that import and export goods, ensuring that duty taxes are paid and that customs and excise procedures are followed correctly.
HMRC has a number of online services to help taxpayers manage their tax affairs. These include online tax calculators, online VAT registration, self-assessment registration, and online payment services. The department also offers various helplines and support services to help taxpayers resolve any issues or queries they may have.
In conclusion, HM Revenue and Customs is a crucial government department that plays a vital role in collecting taxes and enforcing tax laws. Their responsibilities include collecting a range of taxes, administering tax relief schemes, managing self-assessment, preventing tax evasion and fraud, and managing Customs and Excise duties. Through their online services, helplines, and support services, HMRC ensures that individuals and businesses can fulfil their tax obligations easily and efficiently.