HMRC is a vital component of the UK government’s financial infrastructure, managing a significant range of responsibilities while raising funding for public services and government initiatives. As such, its activities and policies have a direct impact on the country’s fiscal health and economic stability but what exactly are these responsibilities and how did HMRC arise?
What does HMRC stand for?
The letters HMRC stand for His Majesty’s Revenue and Customs although you might also know the organisation by older titles like the Inland Revenue. Despite the scary-sounding name, dealing with HMRC really doesn’t have to be a stressful experience. In fact, as a “registered agent” with HMRC, the experts at Tax Refunds have been tackling the taxman for our customers since 1999. That means we have a great relationship with HMRC not to mention the many unions, industry bodies and other organisations whose work’s affected by it.
What does HM Revenue and Customers (HMRC) actually do?
If you’re a taxpayer in the UK, you’ll be running into HMRC at some point – although you won’t always know it’s happened. For example, if you’re working “on the books” for an employer, you’ll be taxed through the Pay As You Earn (PAYE) system. This means your employer will be taking the Income Tax and National Insurance Contributions you owe straight out of your pay before you get it and sending that money straight to HMRC. On the other hand, if you’re self-employed or have other untaxed income, you’ll be dealing with HMRC through the Self-Assessment tax return system. Either way, AccFirm tax experts will make sure you only ever pay the tax you owe, and always get the HM Revenue tax refunds you’re owed.
AccFirm tax expertise and decades of experience in handling our customers’ HMRC tax rebates mean we can help with much more than just your Income Tax worries. As well as running the PAYE system, HMRC is also responsible for things like:
- Value Added Tax (VAT), which we pay on most kinds of UK goods and services.
- Corporation Tax, paid on profits made by UK Limited Companies and certain other organisations.
- Inheritance Tax and Capital Gains Tax, which you might have to pay when you inherit a share of someone’s estate or dispose of valuable property.
- Excise duty, which is a kind of extra tax charged on specific goods like cigarettes, fuel and alcohol.
Whatever questions, problems or worries you have about HMRC, you can always rely on AccFirm expertise and experience to help.
How can I get in touch with HMRC?
You can contact HMRC through their online services system, as long as you have a user ID and password set up (AccFirm can help with that if needed). If you need to phone HMRC or visit specific sections of their website for more information, you can find them at:
- Income Tax: Phone 0300 200 3300 or visit here.
- National Insurance: Phone 0300 200 3500 or visit here.
- Self-Assessment: Phone or visit here.
- Tax credits: Phone 0345 300 3900 or visit here.
- Child Benefit: Phone 0300 200 3100 or visit here.
- VAT: Phone 0300 200 3700 or visit here.
- The Construction Industry Scheme (CIS): Phone 0300 200 3210 or visit here.
When you’ve got AccFirm on your team, of course, you’ll never have to go toe-to-toe with HMRC yourself. We’ll handle all of your communications with them for you at no extra charge as part of our service. In the meantime, if you have any questions or problems, our AccFirm tax experts are available all year round to help!
Duties of HMRC Tax and How to Pay HMRC
There are many types of taxes which works in UK. Some of the key taxes that HMRC collects are:
Income Tax
Income tax is the type of tax on working people above their personal allowance threshold. It is taken automatically through PAYE. If self-employed, you can calculate tax through a Self-assessment tax return.
Capital Gains Tax
Capital Gains Tax is paid when you sell an asset like property and make a profit. There are two rates;
- 18% for basic taxpayers
- 24% for higher rate taxpayers
You can report CGT online and pay directly through your HMRC account.
Value Added Tax (VAT)
Value added tax or VAT is a 20% tax which is added to most services and goods in UK. VAT is added to pricing by businesses, but customers pay it at checkout. After that, the businesses send this money to HMRC, usually on a quarterly basis.
Corporation Tax
Corporation Tax is a type of tax which is paid by some organisations and companies on the profit of their business. To pay corporation tax, you need to file the corporation tax return to HMRC and pay the liabilities to HMRC. Avoid penalties by making sure you file the corporation tax either online or through post by the deadline
Inheritance Tax
It is the tax on property, money, and possessions after the death of someone. Inheritance tax is only applied if the estate is worth over £325,000. It is usually paid before the distribution of the inheritance by the executor of the estate.
Stamp Duty Land Tax
Stamp Duty Land tax is a tax paid when you buy residential property in Northern Ireland or England worth over £300,000 (first-time buyers). It is usually handled by your conveyancer or solicitor when buying a home. Stamp Duty Land tax should be paid to HMRC within 14 days of the property purchase.
Does HMRC owe me a tax rebate?
It’s not always easy to know if you’re owed a HM Revenue tax refund, which is why so many people miss out on the money they’re due each year. HMRC will sometimes pay pack the tax you’re owed automatically but only if they already know you’ve paid too much. When you’ve got essential business travel or other work expenses you’re owed some tax back for, you’ll have to claim it back yourself. That means proving what you’re owed in an HMRC tax refund claim.
You may also be owed some tax back from HMRC if, for instance:
- You’ve been put on the wrong tax code.
- You’ve stopped work or lost your job part-way through a tax year.
- You’ve had to make a change to your Self-Assessment tax return after you filed it.
- You have more than one job and your tax-free Personal Allowance is attached to the wrong one.
- You haven’t been claiming the Marriage Allowance you’re entitled to.
With decades of experience in handling tax refund claims, AccFirm tax experts can take care of every step of your tax refund claim for you. We’ll make sure you get back everything you’re owed, cut out all the stress and guesswork and always make sure you stay in HMRC’s good books. We’ll handle any HMRC enquiries too. HMRC is also our registered anti-money laundering supervisor under the Money Laundering Regulations, so you’ll always know that you and your refund claim are in safe hands.