What Is H.M. Revenue & Customs HMRC?
The U.K. tax authority is HM Revenue & Customs (HMRC). The agency collects taxes, pays child benefits, regulates taxes and customs, and enforces minimum wage standards for companies. HMRC was established in 2005 by merging the Inland Revenue with the Board of Customs and Excise, which formerly handled domestic taxes and customs collection.
HM Revenue & Customs (HMRC) role
In the U.K., HM Revenue & Customs (HMRC) collects various taxes, including income tax, corporate tax, capital gains tax, inheritance tax, VAT, excise charges, stamp duty, air passenger duty, and climate change levy.
The HMRC is the British equivalent of the IRS in the U.S.
The HMRC manages tax collection and cash transmission to the Treasury, ensuring public service funding. HMRC informs the public about tax-paying requirements.
Divisions of HM Revenue & Customs (HMRC)
The Government Banking Service reports to the H.M. Treasury to guarantee proper cash management.
Manages benefits and credits, including tax credits, child benefits, sick pay, and maternity pay.
The Enforcement and Compliance Department enforces taxes, recovers student loans, reduces tax evasion through DOTAS, and enforces the minimum wage.
The Customs Department collects money and prevents the smuggling of items such as tobacco, alcohol, petroleum, etc., by enforcing customs payments and laws for international commerce.
HM Revenue & Customs (HMRC) history
The Commissioners for Revenue and Customs Act established HMRC as a non-ministerial department in 2005.
Parliament receives direct briefings from the agency through the Treasury under the Chancellor. HMRC comes from the merger of Customs and Excise and the Inland Tax, uniting direct and indirect tax divisions.
In 1862, the merger was reversed. The excise taxes were separated from the Inland Revenue in 1909 and merged with the Board of Customs to establish the Board of Customs and Excise. The Treasury Committee recommended a merger in 1999 to save on public expenditures and compliance expenses.
In March 2004, people viewed the merger of the Inland Revenue and the Board of Customs and Excise suspiciously due to their histories and legal frameworks.
HM Revenue & Customs (HMRC) overseer?
HMRC, a non-ministerial department, reports directly to Parliament through the Treasury under the Chancellor of the Exchequer. The Treasury monitors HMRC expenditures.
HMRC’s founding date
The 2005 Parliament statute created the HMRC.
HMRC Headquarters: Where?
London’s Westminster houses the HMRC.
Bottom Line
The Board of Customs and Excise and Inland Revenue merged to establish the HMRC in 2005. The U.K.’s national taxation body, HMRC, collects all direct and indirect taxes and administers benefits and tax credit payments to people.
Conclusion
- The U.K.’s tax authority is HMRC.
- HMRC handles U.K. resident benefits and tax credits.
- Combining Inland Revenue and the Board of Customs and Excise became HMRC in 2005.
