HM Revenue and Customs (HMRC)
Candlefocus EditorHMRC is responsible for the collection of all direct and indirect taxes in the UK, including income tax, national insurance, capital gains tax, corporation tax, council tax, stamp duty, inheritance tax, and Value Added Tax (VAT). The agency also administers the Charities Act (2006), which regulates the behaviour and operations of charitable organisations in the UK. In addition, it is responsible for enforcing new specific taxes imposed by the government, such as those on petrol and diesel, and tobacco products.
The HMRC deals with individual taxpayers, as well as companies, charities, and government organisations. It utilises a variety of tools and methods to ensure that taxpayers pay their proper share of taxes each year. It operates a Pay As You Earn (PAYE) system to deduct taxes from employees' salaries and pensions, and sends self-assessment tax returns to citizens and companies. In addition, HMRC publishes a variety of tax guides and manuals to help individuals and businesses to understand the tax system and their respective obligations.
HMRC is also the main provider of certain social and tax benefit payments in Britain, such as family allowance, child tax credits, working tax credits and jobseeker’s allowance. The agency collects tax revenue and then distributes it to other government organisations or to individuals and businesses, typically through the use of cheques or other payment methods. HMRC also helps to prevent non-compliance with the tax laws, ensuring that all parties pay their fair share of taxes.
Finally, HMRC also monitors the activities of corporations and charitable organisations to ensure they are compliant with the tax laws and regulations. The agency carries out investigations and audits to detect instances of non-compliance, and works to minimise the gap between the taxes due and the taxes collected. Through its various activities, HMRC plays an important role in the management of the UK's taxation system and in providing services to taxpayers and businesses.