What is HMRC?
HMRC stands for His Majesty’s Revenue and Customs. It is the national tax authority of the UK government and operates as the department responsible for administering all national direct and indirect taxes.
What does HMRC do?
HMRC is responsible for a range of duties including:
- Collecting tax
- Enforcing tax and customs law
- Issuing national insurance numbers
- Enforcing the payment of minimum wage by employers
- Paying child benefits
HMRC oversees the efficient collection of taxes and ensures that revenue is available to fund public services. One of the ways in which HMRC ensures the taxation system is implemented and adhered to is by providing clear guidance to taxpayers. HMRC provides a number of tools and resources that taxpayers can use to help them understand the tax system. These include online calculators, guides, and fact sheets. These tools and resources can help taxpayers to calculate their tax liability, and to ensure they are paying the correct amount of tax.
How does HMRC affect my business?
To learn how HMRC affects your business, you must firstly understand the PAYE (Pay As You Earn) system. The PAYE system is the process by which income tax is deducted from an individual’s wages and paid to HMRC.
Under the PAYE system, employers are responsible for deducting income tax from their employees’ wages and paying it to HMRC. This ensures that the correct amount of income tax is collected and paid to the government, without any hassle or inconvenience for the taxpayer.
If you’re running your own payroll, calculating PAYE deductions can be confusing. With Employment Hero’s HMRC compliant payroll software, this process is streamlined and automated with each pay run.
Our easy payroll software takes the hassle out of calculating and paying your HMRC taxes for your team.
Need help with your tax or payroll matters?
We understand that payroll or tax matters can be confusing for business owners in the UK. That is why Employment Hero’s HMRC compliant payroll is here to help you streamline tax calculations and deductions, so you can feel confident each payroll run.
Book a demo with us to learn more about automating payroll with Employment Hero.
