Her Majesty’s Revenue and Customs or HMRC is the United Kingdom’s authority overseeing tax, payments, and customs. HM Revenue and Customs is an impartial body that was established in 2005 by the Commissioners for Revenue and Customs Act (CRCA). It replaced the Inland Revenue and Customs and Excise.

As described by HMRC itself, the body’s purpose is to collect the money that pays for the UK’s public services and help families and individuals with targeted financial support.

HMRC plays a vital role in the UK and businesses are required to follow relevant regulations when making payments or filing tax returns. Since compliance and meeting submission deadlines are vital when dealing with HM Revenue and Customs, businesses often work with accounting firms in London, which have a better understanding of HMRC requirements.

While HMRC provides comprehensive and clear instructions on processes to follow and documentation to submit, a business advisor in London may have important information and valuable advice on how to proceed with the body.
According to HMRC, the body has three strategic objectives. The first is to collect revenue due and bear down on avoidance and evasion. Secondly, HM Revenue and Customs aims at transforming tax and payment for its customers. The final objective is to design and deliver a profession, efficient and engaged organization.

Responsibilities Of HMRC

1. Considering the areas HMRC overseas, it comes as no surprise that HM Revenue and Customs has several responsibilities. One of the main responsibilities of the body is to safeguard the flow of money to the Exchequer through their collection, compliance, and enforcement activities. As mentioned previously, HMRC must also ensure money is available to fund public services.
2. HR Revenue and Customs also facilitates legitimate international trade, collects UK trade statistics, and protects the United Kingdom’s fiscal, economic, social, and physical security before and at the border.
3. In terms of tax, HMRC administers the UK’s tax system in a simple, efficient and customer-focused manner. This makes it easier for individuals and businesses to file their tax returns without a hassle, although a tax consultancy further simplifies the process for businesses.
4. HMRC also helps families and individuals with targeted financial support through the payment of tax credits and also administers Child Benefit and Statutory Payments like maternity and sick pay. The body also administers the Government Banking Service.
5. Considering the vast array of responsibilities held by HM Revenue and Customs, it comes as no surprise that the body plays an important role in the United Kingdom. HMRC says they are a high volume business because “almost every UK individual and business is a direct customer of HMRC” and there is no doubt about this.
6. A tax consultancy, for instance, may maintain constant dealings with HMRC given that it is responsible for different types of taxes, including income tax, corporate tax, environmental taxes, and Value Added Tax (VAT). Businesses required to pay any customs or excise duties will find that their accounting firms in London make the necessary payments and submit the required documents to HM Revenue and Customs.

Importance Of HMRC

1. HMRC’s responsibilities make it clear that a business will find itself making various payments to the body over time. A business advisor London may give valuable advice on how to best adhere to HMRC’s requirements and accounting firms in London are constantly updating themselves on any changes in regulations or deadlines.
2. In addition to the role it plays in terms of payments, tax, and customs, HMRC has also played a vital role in efforts made to minimize anti-money laundering in the United Kingdom. These efforts require certain businesses in the financial sector to register with an anti-money laundering scheme through a supervisor regulating the industry sector.
3. However, if you are an estate agent, do not have a listed supervising body, or handle cash payments of €10,000 or more in exchange for goods, you may be required to register with HMRC. While the body provides simple instructions on how to register, a business advisor London will be able to provide information on the documents and records you are required to submit to HMRC.
4. While anti-money laundering efforts are important in modern times, the importance of HMRC extends to other areas as well. Whether you are making a payment to HM Revenue Customs as an individual or a business, it is best to work with a tax consultancy or business advisor London in order to avoid running the risk of non-compliance or late submissions, for which there may be penalties.