If you’re new to our Accountancy blog; welcome!
We do things a bit differently to other accountants – no one cares about tax updates or financial news until it affects them directly, and especially nobody wants to hear these updates from a second source. So, we try to keep accountancy lighthearted.
With that in mind, please read our feature called ‘Ask the Accountant’.
Every week we post a different question that we’ve had from people throughout the years.
This week it’s a controversial question (perhaps) – who are HMRC?
It’s a good one because they dictate who pays tax, when you pay tax and how much you need to pay.
Let’s dive in, shall we?
To begin HMRC stands for Her Majesty’s Revenue and Customs. HMRC essentially collect money from residents of the United Kingdom. This money pays for public services throughout the UK, and also provides welfare benefits for those who need them.
HMRC is a non-ministerial Department established by the Commissioners for Revenue and Customs Act (CRCA) 2005 – it replaced the Inland Revenue and Custom and Excise. HMRC must report to Parliament via a Treasury Minister.
HMRC are responsible for the following:
– Corporation Tax
– Income Tax
– Inheritance Tax
– Capital Gains Tax
– Environmental taxes climate change and aggregates levy and landfill tax
– Insurance Premium Tax
– Stamp, Land and Petroleum Revenue Taxes
– Value Added Tax (VAT), including import VAT
– Customs duty
– Excise duties
– Trade Statistics
– National Insurance
– Tax Credits
– Child Benefit
– Enforcement of the National Minimum Wage
– Recovery of Student Loan repayments
HMRC State that they have 3 objectives:
1. to collect revenue due and police avoidance and evasion
2. transform tax and payments for our customers
3.design and deliver a professional, efficient and engaged organisation
There is much, much more on the gov.uk website if you want to get even geekier. Or, if you can’t sleep at night…
Be sure to visit back next week for the lowdown on some other burning accounting question!