Taxation in the United Kingdom
This article is part of the series: Politics and government of the United Kingdom Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        Taxation in the United Kingdom may involve payments to at least two different levels of government: local government and central government (HM Revenue & Customs). ... Image File history File links UK_Royal_Coat_of_Arms. ... The Politics of the United Kingdom of Great Britain and Northern Ireland takes place in the framework of a constitutional monarchy in which the Monarch is head of state and the Prime Minister of the United Kingdom is the head of government. ...
Central government
HM Treasury HM Revenue and Customs Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        Taxation in the United Kingdom may involve payments to at least two different levels of government: local government and central government (HM Revenue & Customs). ... The new eastern entrance to HM Treasury HM Treasury, in full Her Majestys Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the UK Governments financial and economic policy. ... Income tax · PAYE VAT · National Insurance Corporation tax Inheritance tax · Stamp duty Capital gains tax · Excise tax Motoring taxes UK Income Tax and National Insurance (2005–2006) UK Income Tax and National Insurance as a % of Salary (2005–2006) Income tax forms the bulk of revenues collected by the government. ... PAYE (or pay-as-you-earn) is a payroll deduction system for collecting income tax in the United Kingdom. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Gold standard Fiscal policy Spending   Deficit   Debt Policy-mix Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Regulation Banking Fractional-reserve Full-reserve   Free banking Islamic... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        UK Income Tax and National Insurance (2005–2006) UK Income Tax and National Insurance as a % of Salary (2005–2006) National Insurance (NI) is a system of taxes and related social security benefits in the... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        Corporation tax is a tax levied in the United Kingdom on the profits made by companies and associations that are resident for tax purposes, and on the profits of permanent establishments of non-UK resident... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        In the United Kingdom, Inheritance Tax was first introduced as a tax on estates in England and Wales over a certain value from 1796, then called legacy, succession and estate duties. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        In the United Kingdom, stamp duty is a form of tax charged on instruments (that is, written documents), and requires a physical stamp to be attached to or impressed upon the instrument in question. ... For all other forms of taxation, see tax Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        A capital gains... Her Majestys Customs and Excise (HMCE) was, until April 2005, a department of the British Government in the UK. It was responsible for the collection of Value added tax (VAT), Customs Duties, Excise Duties, and other indirect taxes such as Air Passenger Duty, Climate Change Levy, Insurance Premium Tax... Motoring taxation in the United Kingdom comes in a variety of forms. ...
Local government
Council Tax Rates · Business rates Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        Taxation in the United Kingdom may involve payments to at least two different levels of government: local government and central government (HM Revenue & Customs). ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Gold standard Fiscal policy Spending   Deficit   Debt Policy-mix Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Regulation Banking Fractional-reserve Full-reserve   Free banking Islamic... Rates are a type of taxation system in the United Kingdom and elsewhere, such as New Zealand, historically used to fund local government. ... Business rates are a United Kingdom tax charged to businesses and other occupiers of non-domestic property. ...
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Her Majesty's Revenue and Customs (HMRC) is a non-ministerial department of the British Government primarily responsible for the collection of taxes, some forms of state support, some aspects of UK frontier protection and import controls. A non-ministerial government department is a department or ministry of a government that is not headed by a Government Minister or Government Secretary, and answers directly to a legislature. ... Her Majestys Government of the United Kingdom contains a number of Ministers and Secretaries of State. ... A logo of Her Majestys Government. ... “Taxes” redirects here. ...

HMRC was formed by a merger of the Inland Revenue and Her Majesty's Customs and Excise and came into formal existence on 18 April 2005. The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty. ... Her Majestys Customs and Excise (HMCE) was, until April 2005, a department of the British Government in the UK. It was responsible for the collection of Value added tax (VAT), Customs Duties, Excise Duties, and other indirect taxes such as Air Passenger Duty, Climate Change Levy, Insurance Premium Tax... is the 108th day of the year (109th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ...

Departmental responsibilities

The department is responsible for the administration and collection of direct taxes including income tax and corporation tax, capital taxes such as capital gains tax and inheritance tax, indirect taxes (including value added tax), excise duties and stamp duty land tax, and environmental taxes such as air passenger duty and the climate change levy. HMRC is also the primary agency responsible for import and export controls for goods and services and for protection of the UK's borders against import or export of illicit materials such as drugs or counterfeit goods. Other aspects of the department's responsibilities include National Insurance contributions, the distribution of child benefit and some other forms of state support including the Child Trust Fund, payments of Tax Credits, enforcement of the national minimum wage and collection and publication of the trade-in-goods statistics [1]. Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        The term direct tax has more than one meaning: a colloquial... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        An income tax is a tax levied on the financial income... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        Corporation tax is a tax levied in the United Kingdom on the profits made by companies and associations that are resident for tax purposes, and on the profits of permanent establishments of non-UK resident... For all other forms of taxation, see tax Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        A capital gains... The examples and perspective in this article or section may not represent a worldwide view. ... The term indirect tax has more than one meaning. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Gold standard Fiscal policy Spending   Deficit   Debt Policy-mix Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Regulation Banking Fractional-reserve Full-reserve   Free banking Islamic... An excise is an indirect tax or duty levied on items within a country. ... Stamp duty is a form of tax that is levied on documents. ... Air Passenger Duty (APD) is an excise duty which is charged on the carriage of passengers flying from a United Kingdom airport on an aircraft that has an authorised take off weight of more than ten tonnes or more than twenty seats for passengers. ... The Climate Change Levy (CCL) is a tax on energy delivered to non-domestic users in the United Kingdom. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        UK Income Tax and National Insurance (2005–2006) UK Income Tax and National Insurance as a % of Salary (2005–2006) National Insurance (NI) is a system of taxes and related social security benefits in the... Child benefit (or family allowance, childrens allowance) is a social security payment disbursed to the parents or guardians of children. ... A Child Trust Fund (CTF) is a long-term savings and investment account for children in the United Kingdom. ... This article or section should be merged with tax credit Tax credits are credits on tax payable given by the government for specific reasons. ... The minimum wage is the minimum rate a worker can legally be paid (usually per hour) as opposed to wages that are determined by the forces of supply and demand in a free market. ...

HMRC has three targets for the period 2005-2008:

• to improve the extent to which individuals and businesses pay the amount of tax due and receive the credits and payments to which they are entitled
• to improve customer experience, support business and reduce the compliance burden
• to strengthen frontier protection against threats to the security, social and economic integrity and environment of the United Kingdom in a way that balances the need to maintain the UK as a competitive location in which to do business

HMRC collected £404 billion for The Treasury in 2005/06.^[1] The new eastern entrance to HM Treasury HM Treasury, in full Her Majestys Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the UK Governments financial and economic policy. ...

Governance structure

Part of the HMRC complex in Nottingham.

HMRC is governed by a board comprising an executive chairman and eight other executive members drawn from the former Inland Revenue, HM Customs & Excise and from external organisations. The board also contains five non-executive directors. Image File history File links Size of this preview: 800 × 289 pixelsFull resolution (923 × 334 pixel, file size: 59 KB, MIME type: image/jpeg) File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... Image File history File links Size of this preview: 800 × 289 pixelsFull resolution (923 × 334 pixel, file size: 59 KB, MIME type: image/jpeg) File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... For other uses, see Nottingham (disambiguation). ... A Chairman is the presiding officer of a meeting, organization, committee, or other deliberative body. ... A non-executive director is a member of the board of directors of a company who does not form part of the executive management team. ...

The Treasury Minister with oversight of HMRC is the Financial Secretary to the Treasury, Jane Kennedy MP. Until 28 June 2007 it was the responsibility of the Paymaster General. The new eastern entrance to HM Treasury HM Treasury, in full Her Majestys Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the UK Governments financial and economic policy. ... Financial Secretary to the Treasury is a junior Ministerial post in the UK Treasury. ... Jane Elizabeth Kennedy (born 4 May 1958, as Jane Elizabeth Hodgson) is a Labour Party politician in the United Kingdom. ... Paymaster-General is a ministerial position in the UK. The portfolio consists of the workings of HM Revenue and Customs, formerly HM Inland Revenue and HM Customs and Excise, and reports to the Chancellor of the Exchequer. ...

Chairmen of HMRC

• Sir David Varney 2005-2007
• Paul Gray 2007-2007
• David Hartnett (acting) 2007-

Sir David Varney is the current Chairman of HM Revenue and Customs replacing the interim Chairman Dave Hartnett in October 2004. ... Paul Gray was the Chairman of Her Majestys Revenue and Customs (HMRC), the British Government Department primarily responsible for taxation and border protection. ...

Merger

The merger of the Inland Revenue and HM Customs & Excise was announced by Chancellor of the Exchequer Gordon Brown in the Budget on 17 March 2004. The name for the new department and its first executive chairman, David Varney, were announced on 9 May 2004. Varney joined the nascent department in September 2004, and staff started moving from Somerset House and New Kings Beam House into HMRC's new headquarters building at 100 Parliament Street in Whitehall on 21 November 2004. The Chancellor of the Exchequer is the title held by the British Cabinet minister responsible for all economic and financial matters. ... For others with the same or similar names, see Gordon Brown (disambiguation). ... For the rental car company, see Budget Rent a Car. ... is the 76th day of the year (77th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... Sir David Varney is the current Chairman of HM Revenue and Customs replacing the interim Chairman Dave Hartnett in October 2004. ... is the 129th day of the year (130th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... The central courtyard of Somerset House in London. ... Whitehall, London, looking south towards the Houses of Parliament. ... is the 325th day of the year (326th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ...

The planned new department was announced formally in the Queen's Speech of 2004 and a bill, the Commissioners for Revenue and Customs Bill, was introduced into the House of Commons on 24 September 2004, and received Royal Assent as the Commissioners for Revenue and Customs Act 2005 on 7 April 2005. The Act also creates a Revenue and Customs Prosecutions Office (RCPO) responsible for the prosecution of all Revenue and Customs cases. Queen Beatrix of The Netherlands reads her countrys Speech from the Throne Queen Elizabeth II reads Canadas Speech from the Throne in 1977 The Speech from the Throne, sometimes referred to by the shorter term Throne Speech, is an event in certain monarchies in which the monarch (or... A bill is a proposed new law introduced within a legislature that has not been ratified, adopted, or received assent. ... Type Lower House Speaker Michael Martin, (Non-affiliated) since October 23, 2000 Leader Harriet Harman, (Labour) since June 28, 2007 Shadow Leader Theresa May, (Conservative) since May 5, 2005 Members 659 Political groups Labour Party Conservative Party Liberal Democrats Scottish National Party Plaid Cymru Democratic Unionist Party Sinn Féin... is the 267th day of the year (268th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... // The granting of Royal Assent is the formal method by which a constitutional monarch completes the legislative process of lawmaking by formally assenting to an Act of Parliament. ... This Act of the United Kingdom Parliament combines the Inland Revenue and HM Customs and Excise into a single government department HM Revenue and Customs. ... April 7 is the 97th day of the year in the Gregorian calendar (98th in leap years). ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... The Revenue and Customs Prosecution Office (RCPO) was created under the Commissioners for Revenue and Customs Act 2005 as an independent prosecution body to take responsibility in the United Kingdom for the prosecution of criminal offences in cases previously within the purview of the Inland Revenue and HM Customs and... Criminal law (also known as penal law) is the body of law that regulates governmental sanctions (such as imprisonment and/or fines) as retaliation for crimes against the social order. ...

The old Inland Revenue and Customs & Excise departments had very different historical bases, internal cultures and legal powers. The merger was described by the Financial Times on 9 July 2004, as "mating the C&E terrier with the IR retriever".^[2] For an interim period officers of HMRC are empowered to use existing Inland Revenue powers in relation to matters within the remit of the old Inland Revenue (such as income tax, stamp duty and tax credits) and existing Customs powers in relation to matters within the remit of the old Customs & Excise (such as value added tax and excise duties). However, a major review of the powers required by HMRC was announced at the time of the 2004 Pre-Budget Report on 9 December 2004, covering the suitability of existing powers, new powers that might be required, and consolidating the existing compliance regimes for surcharges, interest, penalties and appeal, which may lead to a single, consolidated enforcement regime for all UK taxes, and a consultation document was published after the 2005 Budget on 24 March 2005. The Financial Times (FT) is a British international business newspaper. ... is the 190th day of the year (191st in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        An income tax is a tax levied on the financial income... Stamp duty is a form of tax that is levied on documents. ... This article or section should be merged with tax credit Tax credits are credits on tax payable given by the government for specific reasons. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Gold standard Fiscal policy Spending   Deficit   Debt Policy-mix Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Regulation Banking Fractional-reserve Full-reserve   Free banking Islamic... An excise is an indirect tax or duty levied on items within a country. ... In the United Kingdom, the Pre-Budget Report (PBR) is one of the two economic forecasts that HM Treasury is required to deliver to Parliament each year, the other being the annual Budget. ... is the 343rd day of the year (344th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... is the 83rd day of the year (84th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ...

Efficiency gains and job cuts

HMRC offices, 100 Parliament Street

As part of the Spending Review on 12 July 2004, Gordon Brown estimated that 12,500 jobs will be lost as result of the merger by March 2008 around 14% of the combined headcount of Customs (around 23,000) and Inland Revenue (around 68,000). In addition, 2,500 staff will be redeployed to "front-line" activities. Estimates suggest this may save around £300 million in staff costs, out of a total annual budget of £4 billion. There are indications that, after March 2008, a further 12,500 jobs may also be cut. Image File history File linksMetadata Download high resolution version (1800x1309, 616 KB) The Treasury seen from Parliament Square (Whitehall, London, England). ... Image File history File linksMetadata Download high resolution version (1800x1309, 616 KB) The Treasury seen from Parliament Square (Whitehall, London, England). ... A Spending Review is a governmental process in the United Kingdom carried out by HM Treasury to set firm and fixed three-year departmental expenditure limits and, through public service agreements, define the key improvements that the public can expect from these resources. ... is the 193rd day of the year (194th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ...

The total number of job losses includes policy functions within the Inland Revenue and Customs which have moved into the Treasury, so that the Treasury becomes responsible for "strategy and tax policy development" and HMRC handles "policy maintenance". In addition, certain investigatory functions have moved to the new Serious Organised Crime Agency, as well as prosecutions moving to the new Revenue and Customs Prosecution Office. The new eastern entrance to HM Treasury HM Treasury, in full Her Majestys Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the UK Governments financial and economic policy. ... The Serious Organised Crime Agency (SOCA) is a policing agency in the United Kingdom that acts against organised crime, including the illegal drugs trade, money laundering, and people smuggling. ...

A further programme of job cuts and office closures was announced on 16 November 2006.[2][3] Whilst some of the offices closed will be in bigger cities where other offices already exist, many will be in local, rural areas, where there is no other HMRC presence. The numbers of job reductions and office closures has not been officially announced, but the proposals imply that up to 200 offices will close and a further 12,500 jobs will be lost from 2008 to 2011.[4] [5] is the 320th day of the year (321st in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...

HMRC maintains that the level of service to its customers will increase by implementation of "lean" processes designed to improve efficiency, introducing better technology, better use of its offices and a much stronger focus on the needs of the customer - taxpayers, benefit claimants and other members of the public who use HMRC's services. Lean manufacturing is the production of goods using less of everything compared to mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. ...

Child benefit records scandal

Main article: 2007 UK Child Benefit data scandal

On the 20 November 2007 the Chancellor of the Exchequer announced that two discs that held the personal details of all families in the United Kingdom claiming child benefit had gone missing.^[3]. This is thought to affect approximately 25 million individuals and 7.5 million families in the UK. The missing discs include such personal details as: The 2007 UK child benefit data misplacement occurred in October 2007, when two computer discs owned by Her Majestys Revenue and Customs containing data relating to child benefit went missing. ... is the 324th day of the year (325th in leap years) in the Gregorian calendar. ... The Chancellor of the Exchequer is the title held by the British Cabinet minister responsible for all economic and financial matters. ... Child benefit (or family allowance, childrens allowance) is a social security payment disbursed to the parents or guardians of children. ...

• Name
• Date of birth
• National insurance number
• Bank details, where relevant

The chancellor, Alistair Darling has stated that there is no indication that the details have fallen into criminal hands; however, he has urged people to monitor their bank accounts.^[3] Alistair Maclean Darling (born November 28, 1953) is a British politician and Chancellor of the Exchequer since June 28, 2007. ...

See also

• Tax
• Economy of the United Kingdom
• Inland Revenue
• Her Majesty's Customs and Excise

“Taxes” redirects here. ... The United Kingdom has the fifth largest gross domestic product in the world in terms of market exchange rates and the sixth largest by purchasing power parity (PPP). ... The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty. ... Her Majestys Customs and Excise (HMCE) was, until April 2005, a department of the British Government in the UK. It was responsible for the collection of Value added tax (VAT), Customs Duties, Excise Duties, and other indirect taxes such as Air Passenger Duty, Climate Change Levy, Insurance Premium Tax...

References

The Financial Times (FT) is a British international business newspaper. ... is the 190th day of the year (191st in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 324th day of the year (325th in leap years) in the Gregorian calendar. ...

External links

• HMRC website
• Attorney Generals Office - National Fraud Review
• Commissioners for Revenue and Customs Act 2005
• Treasury Press Release (13 May 2004)
• Treasury Press Release (12 July 2004)
• Treasury Press Release (25 November 2004)
• HM Revenue and Customs and the Taxpayer: Modernising Powers, Deterrents and Safeguards (Consultation document, 24 March 2005)
• The Customs Reviews and Appeals (Tariff and Origin) Regulations 1997
• The Distress for Customs and Excise Duties and Other Indirect Taxes Regulations 1997
• The Public & Commercial Services Union (PCS) Revenue & Customs Web Pages
• Tax Credits Forum

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