What Is His Majesty's Revenue and Customs (HMRC)?

HM Revenue & Customs (HMRC) is the tax authority of the U.K. government. The agency is responsible for collecting taxes, paying child benefits, regulating tax and customs laws, and enforcing the payment of 澳洲幸运5官方开奖结果体彩网:minimum wage by employers.

HMRC was formed in 2005 following the merger of the 澳洲幸运5官方开奖结果体彩网:Inland Revenue and the Board of Customs and Excise, the agencies which formerly handled internal taxes and customs collection.

Role of the HMRC

HMRC collects all direct and indirect taxes in the U.K., including income tax, corporation tax, capital gains tax, inheritance tax, 澳洲幸运5官方开奖结果体彩网:value-added tax (VAT), excise duties, stamp duty land tax, air passenger duty, and the climate change levy.

The HMRC oversees the efficient collection of taxes and the transfer of funds to the Treasury so that revenue for public services is available. Employers will submit Full Payment Submission (FPS) and Employer Payment Summaries (EPS) statements with each payroll showing payrolled benefits and deductions from wages.

The🧜 HMRC also educates and💖 informs the public about their tax-paying duties.

HMRC Divisions

• Government Banking Service: Provides reports to the HM Treasury to ensure an accurate 澳洲幸运5官方开奖结果体彩网:cash management system.
• Benefits and Credits: Administers the payment of 澳洲幸运5官方开奖结果体彩网:tax credits, child benefits, statutory sick pay, and maternity pay.
• Enforcement and Compliance: Takes action for non-payment of taxes, recovers unpaid 澳洲幸运5官方开奖结果体彩网:student loans, implements systems to reduce tax avoidance (such as DOTAS), and enforces the minimum wage.
• Customs: Focuses on the enforcement of customs payments and regulations for 澳洲幸运5官方开奖结果体彩网:international trade to collect revenue and suppress smuggling and illicit trade in tobacco, alcohol, petroleum, and other goods.

History of HMRC

Established in 2005 under the Commissioners for Revenue and Customs Act, the HMRC is a non-ministerial department. The agency reports directly to Parliament through the Treasury, under the leadership of the Chancellor of the Exchequer. The HMRC represents the merger of Customs and Excise and the Inland Revenue, combining direct🌱 and indirect💃 revenue departments.

The merger was previously overturned in 1862. In 1909, the 澳洲幸运5官方开奖结果体彩网:excise duties were removed from the administration of the Inland Revenue and were combined with the Board of Customs to form the Board of Customs and Excise. Once again, a 1999 report by the Treasury Committee suggested a merger, citing the potential savings in public expenditure and 澳洲幸运5官方开奖结果体彩网:compliance costs.

The decision, announced in March 2004, to merge the 澳洲幸运5官方开奖结果体彩网:Inland Revenue and the Board of Customs and Excise was met with some skepticism as the two departments had such different historical and cultural foundations and legal structures.

The Bottom Line

In 2005, the HMRC was formed with the merger of Inland Revenue and the Board of Customs and Excise. His Majesty's Revenue & Customs (HMRC) is the national taxing authority of the United Kingdom that collects all direct and indirect taxes and administers benefits and tax credit payments to residents. The HMRC collects and records Full Payment Submission (FPS) and Form P45 from employers to document benefit amounts paid in by e🔜mploye🐼es.