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

HMRC

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!

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