HMRC — HM Revenue & Customs (UK)

HM Revenue & Customs (HMRC) is the United Kingdom's central tax authority. It is responsible for collecting taxes and duties and administering tax-based welfare benefits (Child Benefit, Tax Credits). In the international context, HMRC acts as the central interface for automatic tax information exchange.

• Status: Non-ministerial department (reports to Parliament through the Exchequer Secretary to the Treasury)
• Headquarters: London / Newcastle upon Tyne (central office)
• Leadership: John-Paul Marks (First Permanent Secretary and Chief Executive)
• CRS: Central collection point for CRS reports from UK financial institutions; transmission to partner states
• FATCA: Receipt and forwarding of FATCA data from UK institutions to IRS
• Tax crime enforcement: Fraud Investigation Service (FIS)

HMRC was formed on 18 April 2005 by the merger of Inland Revenue (taxes) and HM Customs and Excise (customs and excise duties) under the Commissioners for Revenue and Customs Act 2005 (c. 11). Prior to this, both authorities had operated separately since the 17th and 18th centuries respectively. The merger followed recommendations of the O’Donnell Report on modernising UK tax administration.

Internationally, HMRC was an early protagonist of automatic information exchange. The UK concluded the world’s first FATCA IGA in September 2012. Under the OECD CRS regime, the UK was among the first group of countries to exchange reports in 2016/2017. After Brexit, the application of DAC6 in the UK ended on 31 December 2020. On 28 March 2023, the UK Mandatory Disclosure Rules (UK MDR) entered into force as an independent UK equivalent.

HMRC is responsible for:

• Direct taxes: Income tax, corporation tax, capital gains tax, inheritance tax
• Indirect taxes: Value Added Tax (VAT), excise duties, customs
• Social contributions: National Insurance Contributions (NICs)
• International information exchange: CRS, FATCA, Country-by-Country Reporting, UK MDR
• Customs and import: Border control post-Brexit, UK Global Tariff
• AML supervision: Supervisory authority for Money Service Businesses, Trust or Company Service Providers (TCSPs), estate agency businesses and high value dealers
• Welfare benefits: Child Benefit, Tax Credits, Universal Credit (partially)

Reporting obligations and requirements to HMRC:

• UK CRS reporting: UK financial institutions report annually by 31 May on account information for reportable account holders (International Tax Compliance Regulations)
• UK FATCA reporting: UK financial institutions report US account data via HMRC portal for forwarding to IRS
• UK MDR: Intermediaries report cross-border tax arrangements (UK Mandatory Disclosure Rules, in force since 28 March 2023)
• CbCR: Multinational groups submit Country-by-Country Reports to HMRC
• Self Assessment: All UK taxpayers with complex affairs submit annual tax return
• Making Tax Digital (MTD): Digital tax return obligation for VAT (since April 2022 for all VAT-registered businesses); from April 2026 for income tax (MTD ITSA) for sole traders and landlords with annual income exceeding GBP 50,000

2 corrections:
- HMRC is not a department of HM Treasury but a non-ministerial department
- UK MDR did not take effect on 1 January 2021
5 clarifications.
4 notes.