Who we are and what we do
Most people have heard of HMRC. You may have seen our name on a letter, or on your payslip. But you may be less clear on what we actually do.
We’re HMRC, or His Majesty’s Revenue and Customs, and it’s our job to collect tax in the UK and to help make it work for everyone. We give vital financial support to people who need it most through our benefits. And we manage how the UK trades with other countries, and the extra tax rules involved.
We’ll go into all of this in more detail later.
Collecting money for the things we all use
Tax pays for the infrastructure we all rely on – like the roads we drive on, and the police who keep us safe, as well as lots of other important public services like libraries, parks, and nurses.
Our main job is to collect tax so the government can pay for these things.
So, when you pay tax, you’re helping to pay for the things that make the UK work.
One of our other main jobs is to collect National Insurance. This helps pay for the NHS and things called ‘state benefits’, including your State Pension.
Helping people in need get financial support
Our job isn’t just about collecting money. It’s about making sure that people get the extra financial support they need too. This includes things like Child Benefit for families with children.
Working with employers to make tax simple
If you work for someone else, your tax is probably sorted out automatically. That’s because we work with employers and businesses to make things easier.
Most people who earn wages have their tax taken from them before they even reach their bank account, through something called ‘Pay As You Earn’ (PAYE). And if you get money from a pension, we work with your pension provider behind the scenes to collect tax too. You can find more about how this works on our PAYE page.
We also help businesses understand the taxes they have to pay, like Value Added Tax (VAT), which is the tax added to most things you buy.
Protecting the UK’s borders and helping trade
You may be wondering what the ‘customs’ means in His Majesty’s Revenue and Customs. It refers to what goods come in (are ‘imported’) and go out (are ‘exported’) from the UK. When goods arrive at UK ports and airports, it’s our job to work with the Home Office to check they’re safe and that the right ‘customs’ taxes have been paid.
This keeps us all safe from dangerous or illegal items, while making sure that businesses play by the rules when trading with other countries. This, in turn, supports both the UK and global economy.
Helping you get things right
With so many types of tax, each with different rules, things can feel confusing. But most people just want to do the right thing, and we want to help them do that.
So we’ve created Tax Confident to explain tax, and answer your questions, simply. You don’t need to be an expert, but the information you find here will help fill any gaps in your knowledge.
If you’re retired, running your own business, starting a new job, or trying to understand your tax code, we’re here to help you understand it, step by step.