When it comes to taxes, HMRC is a name you’ll hear often but what exactly does it do, and why should you care?
Her Majesty’s Revenue and Customs (HMRC) is the UK government department responsible for collecting taxes. It was created in 2005 following the merger of the Inland Revenue and Customs and Excise. But beyond the formalities, HMRC plays a vital role in keeping the country running and making sure everyone pays their fair share to fund essential public services like healthcare, education, and transport.
So, what does HMRC actually do?
One of its key roles is collecting taxes from income tax and corporation tax to capital gains and VAT. If you’re self-employed, receive rental income, or have untaxed earnings, you’ll need to complete a Self-Assessment tax return each year. This means reporting your income to HMRC and paying what you owe. HMRC is also responsible for making sure the tax system is fair. They tackle fraud, conduct audits, and investigate tax evasion to ensure everyone follows the same rules.
Getting set up with HMRC
If you’re newly self-employed, you’ll need to register with HMRC and you’ll be given a Unique Taxpayer Reference (UTR) number. This is your reference for all dealings with HMRC. Limited companies must register for corporation tax, and if your business turnover hits £90,000 or more, you’ll need to register for VAT. If you run a payroll, you’ll also need to register for PAYE to manage employee tax and National Insurance.
It sounds like a lot but you’re not alone
Yes, HMRC processes can feel overwhelming at times. But with the right support, it becomes manageable. HMRC offers online help, webinars, and helplines but even better, a good accountant will take that weight off your shoulders and make sure everything is done properly and on time.
Need a hand? Let’s make it easier.
We help individuals and businesses navigate HMRC with confidence. Whether it’s Self-Assessment, VAT registration, or payroll setup, we’ve got your back. Get in touch today and let’s make tax simpler, together.
