Definition
HMRC (Her Majesty’s Revenue and Customs): HMRC is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, and the administration of other regulatory regimes including the minimum wage. It was formed by the merger of the Inland Revenue and Her Majesty’s Customs and Excise in 2005.
Examples
- Income Tax: HMRC is responsible for collecting income tax from individuals and businesses through various schemes such as PAYE (Pay As You Earn).
- VAT Collection: HMRC oversees the collection of Value Added Tax (VAT) from businesses on the increase in value of goods or services.
- National Insurance Contributions: HMRC manages national insurance contributions which are payments made by employees and employers to qualify for certain benefits and the state pension.
Frequently Asked Questions
1. What are the main functions of HMRC?
- Collecting direct and indirect taxes.
- Administering national insurance and state pension.
- Enforcing compliance with tax laws.
- Providing tax reliefs and benefits.
2. How can I contact HMRC?
- You can contact HMRC through their helpline, online services, or by visiting their offices. Their official website provides detailed contact information.
3. What should I do if I disagree with an HMRC decision?
- You can appeal against HMRC decisions. The appeal process involves reviewing the decision, requesting an internal review, and potentially appealing to a tax tribunal.
4. Can I access my HMRC records online?
- Yes, you can access your records through HMRC’s online services by registering for a Government Gateway account.
5. How do I submit my tax returns to HMRC?
- Tax returns can be submitted online through the HMRC website or by post using the relevant tax return forms.
Related Terms and Definitions
- PAYE (Pay As You Earn): A system where employers deduct income tax and national insurance from employees’ wages and pay it directly to HMRC.
- VAT (Value Added Tax): A consumption tax placed on a product whenever value is added at each stage of the supply chain.
- Self-Assessment: A system used by HMRC to collect income tax. Taxpayers report their income and capital gains, and pay tax due, by filing a tax return.
- National Insurance: Contributions made by workers and employers towards certain state benefits, including the state pension.
Online Resources
Suggested Books for Further Studies
- “Taxation: Policy and Practice” by Andy Lymer and Lynne Oats: This book provides an in-depth look at the UK tax system and its administration.
- “Bloomsbury Professional Tax Handbook”: An authoritative guide that covers a wide range of tax-related topics relevant to UK tax law.
- “Tolley’s Tax Guide”: A comprehensive resource on the UK’s tax system, ideal for both students and professionals.
Accounting Basics: “HMRC” Fundamentals Quiz
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