The UK government is trying to make it easier for people to pay their taxes and HMRC has put together an easy-to-use infographic that outlines how taxes are calculated in the UK. The infographic includes the basics, such as how tax is calculated through income and what you should know about inheritance tax.
Emer O’Neill, HMRC’s head of communications, said: “Tax is a crucial part of our society and it’s only right that we help people understand the basic principles behind it.”
What is HMRC?
HMRC is the UK’s most important tax authority. It collects taxes and administers tax law, helping to keep finances in the country running smoothly. HMRC has a number of different functions, including:
- Collecting taxes and administering tax law
- Supporting businesses and individuals with their tax affairs
- Keeping track of financial irregularities
- Supporting voluntary organisations with their tax affairs
- HMRC is a huge organisation with a lot of different areas of work.
This article provides an overview of HMRC, highlighting some of its key functions. Introduction to HMRC’s Functions
HM Revenue and Customs is the UK’s most important tax authority. It collects taxes, administers tax law and serves as a government department. HMRC is responsible for collecting taxes and administering tax law, helping to keep finances in the country running smoothly.
The organisation provides support to limited companies and individuals with their tax affairs, while also monitoring financial irregularities and supporting voluntary organisations in their tax affairs too. HMRC has a number of different functions. This article takes a broad look at some of these different areas of work. This article focuses on HMRC’s Tax Collection function – its core purpose is to collect taxes on behalf of the British government.
What do HMRC Do?
HMRC is responsible for collecting income tax and corporation tax from individuals and businesses in the UK. They also administer a range of benefits and support services, including tax refunds, pensions, and social security.
If you need to pay HMRC, there are a few different ways to go about it. This overview provides an overview of the most common methods used to pay HMRC.
The first step is to figure out your tax liabilities. This can be done using a simple online calculator or by contacting HMRC directly. Once you have determined your tax liabilities, you will need to set up a payment plan with HMRC.
This will allow you to pay off your tax debts over a period of time without having to worry about falling behind on payments. There are several different payment plans available, so it is important to choose the one that best suits your situation.
The next step is to gather all of the paperwork needed to make a payment plan with HMRC. This includes information such as bank statements, payslips, and proof of residence (such as a utility bill). It is important to keep all of this paperwork handy when making payments.
How to Pay HMRC?
If you are an individual taxpayer, or a business with a taxable income of less than £40,000 a year, you can pay your tax online using the online service. If your taxable income is between £40,000 and £60,000, you can pay using the online service or by post.
If your taxable income is more than £60,000, you must pay by post or in person at a Taxation Office. How to Pay a Council Tax Bill. You can pay a Council Tax bill online, or by post or in person at a Council Tax Office.
How to Pay a Student Loan. If you are an individual taxpayer with annual taxable income under £21,000, you can make monthly payments of your student loan online using the online service. If your taxable income is more than £21,000 and you wish to pay by cheque using the Post Office rather than by direct debit through the Student Loans Company’s (SLC) system, you should contact SLC to arrange this on their behalf.
Forming a company and paying yourself
If you’re setting up a PLC company then there are a few things you need to do. The first is to fill in a company registration form which you can find on the HMRC website. You’ll need to provide some basic information such as your company name, registered address and contact details.
Once you’ve registered your company with HMRC you’ll need to pay some tax. The main way to pay tax is through PAYE (pay as you earn) – this means you deduct tax from your salary and send it directly to HMRC.
Alternatively, you can use Self Employed Taxation which is a more flexible option and allows you to pay less tax if your income falls within certain limits. Finally, if you’re starting a business from scratch then you’ll need to set up a bank account and get a business number.
Tax Planning
If you’re looking to pay your taxes, you have a few different options. This overview of HMRC will help you choose the right one for you. When you’re making an income tested claim, it’s important to choose the right type of tax code for your circumstances. This video from Money Saving Expert will tell you how to do this.
HMRC released its draft Personal Tax Code in March 2018 – take a look at our guide to see what it means for you. To help you get the best value for your money, we’ve put together a guide to the different types of tax code offered by HMRC.
Conclusion
As a small or micro business owner, it’s important that you’re aware of your obligations and what HMRC expects from you. This overview will help you to understand the basics of how HMRC works, as well as providing some tips on how to avoid any potential tax problems. So be sure to read it carefully, and then get in touch with us if you have any questions or need our help implementing the correct procedures.