Who isW HMRC?
They are the UK’S tax, payments and customs authority, and have a vital purpose. They collect money that pays for the UK’S public services and helps families and individuals with targeted financial support. They do this by being impartial and increasingly effective and efficient in their administration. They help the honest majority to get their tax right and make it hard for the dishonest minority to cheat the system.
What are HMRC responsibilities?
They are responsible for:
- Income Tax, Corporation Tax, Capital Gains Tax, Inheritance Tax, Insurance Premium Tax, Stamp, Land and Petroleum Revenue Taxes
- environmental taxes
- climate change and aggregates levy and landfill tax
- Value Added Tax (VAT), including import VAT
- customs duty
- excise duties
- trade statistics
- National Insurance
- tax credits
- Child Benefit
- enforcement of the National Minimum Wage
- recovery of Student Loan repayments
- anti-money laundering supervision
What are HMRC objectives?
They have 5 strategic objectives:
- collect the right tax and pay out the right financial support
- make it easy to get tax right and hard to bend or break the rules
- maintain taxpayers’ consent through fair treatment and protect society from harm
- make HMRCa great place to work
- support wider government economic aims through a resilient, agile tax administration system
What is HMRC MTD?
MTD for income tax is a service that enables businesses and landlords to keep their records digitally and submit information about their business income to HMRC using MTD-compatible software.
HMRC Plans for MTD (Making Tax Digital) Income Tax
Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.
Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital service for Income Tax. If you are a self-employed business or landlord you can voluntarily use software to keep business records digitally and send income tax updates to HMRC instead of filing a Self-Assessment tax return.