HMRC
His Majesty's Revenue and Customs, the UK government department responsible for collecting taxes, paying certain forms of state support, and enforcing tax law. HMRC administers income tax, National Insurance, VAT, Capital Gains Tax, Corporation Tax, and many other levies. It also handles Self Assessment returns, issues tax codes, and operates the PAYE system.
Related Terms
PAYE
Pay As You Earn — the system by which employers deduct income tax and National Insurance directly from employees' wages before paying them, and remit the deductions to HMRC on their behalf.
Self Assessment
The system by which individuals report their own income, gains, and reliefs to HMRC each year through an online or paper tax return, rather than having tax collected automatically under PAYE.
Tax Year
The 12-month period used for UK tax purposes, running from 6 April to the following 5 April.
Tax Code
A code issued by HMRC to your employer to tell them how much income tax to deduct from your pay each period.