Her Majesty’s Revenue and Customs is the tax authority of the United Kingdom government. The agency is responsible for tax collection, child benefits, tax and customs enforcement and companies’ compliance with the minimum wage. The agency was established in 2005 by the merger of the former Inland Revenue and Customs and Excise Departments.

What is the History Behind HM Revenue and Customs?

The HMRC was set up under the Revenue&Customs Commisioners Act 2005, when the queen appointed Commisioners to manage the country’s tax system. It’s not a department, instead the agency is accountable directly to the Parliament via the Treasury which is headed by the Secretary of State for Business, Energy, and Industrial Strategy. The Treasury oversees HMRC expenditure. A commitee was set up in 1862 to consider combining the Internal Revenue’s duties with those Customs & Monopoly Board (SCT). In 1909 SCT was wound up by the IRS and joined forces with the CB to create the Customs& Monopolies Board. The announcement of the merger of Internal Revenue and CB in March 2004 was greeted with some scepticism, given the two departments disparate historical and cultural backgrounds and legal structures.

What are HM Revenue and Customs’ Duties and Concerns?

HMRC carries out a wide range of duties significant to the UK’s economic and financial well-being. First duty of the HMRC is to collect taxes to fund public services, ensuring the flow of cash to the treasury. After that, HMRC supports legitimate international trade and protects the nation’s financial, social, and economic well-being, both at home and abroad. Thirdly, HMRC oversees statutory payments, manages child benefit, and offers targeted financial supports via tax credits. HMRC also juggles a vast number of transactions involving almost every UK person or institution. Lastly, HM revenue and customs aims to achieve operational efficiency and provide services that are consumer-focused, with the aim of maintaining a tax regime that is accessible, open, and responsive to grand variety of needs.

Financial Conduct Authority vs Her Majesty’s Revenue & Customs (HMRC)

The Financial Conduct Authority and Her Majesty’s Revenue and Customs are two separate agencies. But they both play significant roles in the UK’s financial system. The FCA’s main remit is to regulate financial markets, ensure their integrity and protect consumers’ interests. On the other hand, HMRC’s primary remit is to collect taxes, enforce compliance and fund public services. While the FCA is mainly concerned with market conduct and protecting consumers, HMRC is focused on maintaining an effective tax system, fighting tax evasion, and supporting eligible individuals and families with tax credits.

Both agencies play an important role in the financial health of the UK, but the FCA is more concerned with market integrity and protecting consumers’ interests, while HMRC is more focused on tax compliance and consumer-friendly financial services.