General Info About Tax And HMRC

HMRC stands for Her Majesty’s Revenue and Customs, often called HM Revenue and Customs or sometimes called HMRC, is one of the most popular non-ministerial departments of the United Kingdom. The government of UK is mainly responsible for collecting taxes; this is nothing but a payment of some types of state support, as well as the administration of other various kinds of regulatory regimes combining the national minimum wage. HMRC was totally formed by the connection as well as the merger of the Inland Revenue and Her Majesty’s Revenue and Customs and Excise, which was taken place and effect for the month of April 2005.

Agreement Of HMRC

Generally, HMRC has two main overarching Public Service Agreement that targets for a certain period of 2008 to 2011. Let us see that two agreement.

  • It improves the extent with which the individuals, as well as businesses, pay the tax that was due and receives a number of credits as well as payments to that they are entitled.
  • It improves the experiences of the customers’ of HMRC as well as improves the business environment of United Kingdom.

HMRC inland and its detection officers have a wide range of powers of arrest, various kinds of entry, search as well as detention. The main power of this kind of detention by which anybody who has committed, or anybody whom the authority or the officer has mainly reasonable to the grounds to suspect has been committed, or such kind of offense under the Customs and Excise Acts.

HMRC And Its Authority In The UK

HMRC is also one of the listed ones that are in the parts of the UK Government, which completely contribute to intelligence and the collection, analysis as well as assessment. Their main prosecution cases might be coordinated with their Police or the Crown and Prosecution Services. The department has mainly organized a total of four operational groups, as well as each led by the director general. The four mainly operational groups consist of:

  • Personal tax
  • Benefits as well as credits
  • Business tax
  • Enforcement as well as compliance

Additionally the four operational groups and also five supporting groups are there, these groups are:

  • Permanent Secretary for the purpose of Tax group
  • Chief Finance Officer and its group
  • Chief information Officer and its group
  • General Counsel as well as Solicitor group
  • Chief People Officer and its group

If you are a UK taxpayer, then you must know the rules and regulations of the government. Because the UK’s tax, payments as well as customs authority, and the important purpose they collect are fully authorized by the government of United Kingdom and the money that collected by the people for the purpose of the United Kingdom public services as well as help families and the entire individuals with fully or partially targeted financial support.

They also safeguard the flow of money and the income, which is tight regulation by the tax, customs, and excise department of the government of United Kingdom. If you have more question, you can dial HMRC contact number to know in detail about the tax.

Checklist For Keeping On The Right Side Of HMRC

The HMRC is also known as the ‘Her Majesty’s Revenue and Customs’ is one of the most important departments of UK. This is the department which is responsible for the collection of the taxes and also the maintenance of the same.

It deals with the tax collection and makes sure that no one who should be contributing, has by any means cheated on the same. If somehow people manages to cross that line and cheat on the taxes then there are consequences that one needs to go through.

The HRMC should be dealt with seriousness, and one should make sure that if they do want to be safe from the negative impact of the HMRC, then they should have a checklist made which they will follow seriously.

The Checklist To Check With:

The following checklist is for anyone who owns a business and does not want the HMRC thirsting for their heads:

Checking With The Employment Tax:

  • The deduction of the National Insurance Contributions from the salary of the employees, once they manage to earn a certain amount of money is extremely necessary. If one is not much sure, they can find out about this from the website and then do it but on time.
  • Always make sure that the regular form returns are done on the exact time. Each year by the 19th of May all should be cleared. Also, make sure that the P60s are very much issued to the employees by June 1st and that too to the employees who deserves them. Also keeping a check on the tax of the cars of the company is very important.

There are various responsibilities which depend on the factors like sickness or the maternity and also not to forget the other special benefits. These should be kept in mind.

Checklist For The Business Tax:

  • Registration for the tax should be done on starting up only with no possible delays at all. If not done within the time period of three months from the starting up then the penalty is totally unavoidable.
  • Deciding on the factors before registering for the VAT is an extremely smart option. One needs to decide on when to register for it exactly. They have to decide to whether to quit charging the VAT from the consumers to get a good fame for the business or otherwise. Whatever the situation is maybe, once the apparent threshold is reached by the turnover then that is that. One has to pay the taxes.
  • The VAT rules are better by heartening. One should remember that the payment of timely tax can be more than profitable to them.
  • Also, the tax depends on the kind of establishment one has. They may get charged for the corporate tax, judging from it. One needs to complete the process of their return and then pay it too. And this should be done without delay.

Checklist For The Personal Tax:

The following is the checklist one should follow:

  • Filing the tax returns and paying them should always be done on time without delay.

One must always remember that there can be an error made by anyone. They should necessarily make sure to check on the tax bills thoroughly.

A Brief History Of HMRC In The UK

If you are a business runner in the United Kingdom, then you have to deal with HMRC. Whether it is a large or small, new or old business! It is considered to be a fact of life that we are supposed to pay tax; as without it our society will grind to a halt in a very quick manner.

Dealing With The Tax Man – A Wealthy Idea

To be broad and precise, maximum businesses shy away at the thought of dealing with the Tax Man and spending more time which is perhaps wealthy in comparison to getting things on the spot. This enables them to stay on his right side.

Whenever an average businessman considers HMRC as an adversary, it implies probable understating a lot of things along with standard reactions. They may range from mild contempt to outright terror. But holding a good knowledge about this particular government department plays a vital part in our lives.

Handling Of Collections By The Inland Revenue Department

But many business owners think that it is probably not a great deal to allow accountants for stepping in and standing as a buffer between them and the Tax Man. Until April 2005, The Inland Revenue was a department in the UK Government that was solely responsible for the collection of taxes.

It used to handle the collection of the following:

  • Income tax
  • Corporation Tax
  • National Department
  • Stamp Duty
  • Capital Gains Tax
  • Inheritance Tax

It was also responsible for paying Child Benefit. In April 2005, the Inland Revenue joined its forces with Her Majesty’s Customs and Excise to become HMRC, an abbreviated form of Her Majesty’s Revenue and Customs.

Collection And Administration Of HMRC

It was a merger that used to lend the old Inland Revenue a few clouts that were enjoyed traditionally by Customs. Half of the Revenue of this new department continues to be responsible for the collection and administration of direct tax.

But their associated new powers allow more access to tax evaders along with better teeth to deal with! HMRC is now responsible for the collection of taxes paid by the owner as well as business along with:

  • Capital Gains Tax
  • Corporation Tax
  • Income Tax
  • National Insurance Contributions
  • Inheritance Tax


They also collect as well as administer all sorts of taxes that are gathered in an automatic manner from the money spent by us including:

  • Excise duties
  • Insurance premium tax
  • Petroleum revenue tax
  • Stamp duty
  • Stamp duty land tax
  • Stamp duty reserves tax
  • VAT

Looking After By HMRC

They continue to pay Child Benefit along with Child Trust Fund and Tax Credits. On top of this, HMRC at present look after the following:

  • Environmental taxes
  • Recovery of student loans
  • Border and frontier protection
  • National minimum wage enforcement

Hence, whichever way you look it can be easily inferred that it is really impossible to escape from carrying on business with HMRC throughout. The remit associated with them is simply too large, and their job is also too important.

Therefore, rather than running towards the unknown, it is better to take out a little time to learn about what the Tax Man can easily do for you. He is preferred as he has been all around for a very long time. Also, it seems that he will not fly away leaving us behind!