HM Revenue and Customs (HMRC)

Definition

HM Revenue and Customs is a tax authority responsible for the administration and collection of taxes, duties, and other revenue streams. 

What is HM Revenue and Customs?

HMRC collects taxes from individuals, businesses, and other organisations in the UK. This includes income tax, corporation tax, value-added tax (VAT), capital gains tax, inheritance tax, and other taxes charged by the government. Furthermore, HMRC is responsible for customs and excise duties, including the regulation of imports and exports, the collection of customs duties, and the enforcement of trade laws and regulations.

HMRC also ensures compliance with tax laws and regulations by conducting audits, investigations, and enforcement actions against individuals and businesses suspected of tax evasion, fraud, or non-compliance.

Additionally, HMRC provides guidance, information, and support to taxpayers to help them understand their tax obligations, file tax returns, and access tax credits, allowances, and reliefs. This includes providing online resources, helplines, and customer service channels.

HMRC develops tax policy proposals and provides advice and recommendations to the government on tax-related matters. It works closely with other government departments, stakeholders, and international organisations to shape tax policy and legislation.

Lastly, HMRC combats tax avoidance and evasion through the implementation of anti-avoidance measures, the enforcement of tax laws, and international cooperation with other tax authorities. This includes identifying and closing tax loopholes and challenging abusive tax schemes.