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HMRC, HM Revenue & Customs, Inland Revenue Importance of Accounting

By Terry Cartwright

Republish: EasyPublish™
Published: 09Apr2009
Word count: 655
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You can visit HMRC Inland Revenue online where you can log in and sort out your tax related issues. The inland revenue website itself offers a huge amount of help and provides all manner of information regarding income tax, value added tax and any other financial issue including questions you may have relating to your business.

What is HMRC, HM Revenue & Customs? Inland Revenue Information Indicates Importance of Accounting Calculations

HM Revenue & Customs also known as Her majesty's revenue, HMRC, which is a part of British government's non-ministerial department and takes care of the payments and collections of corporation tax, value added tax, income tax and national insurance contributions to be paid by businesses in the UK. The HMRC also aims to control and standardise accounting calculations which helps to limit fraudulent transactions occurring in this country. The HMRC came together when the Inland Revenue and Her Majesty's customs and excise merged and united together on 18 April 2005. The HMRC depicts the importance of accounting and recording value added tax figures in all companies, not just larger corporations, and it is highly necessary for start ups to be fully aware of the implications should regulations concerning HMRC not be followed - getting it right at the start will make it easier to run your business, keep accurate records and expand your business in the future. All kinds of direct and indirect taxes and revenue are collected by HM Revenue & Customs such as income tax, capital tax, capital gains to indirect ones like excise duty, value added tax climate change levy etc fall under the HMRC umbrella. They work for the development of our economy and financial stability and your business needs to be aware of how to record the information required by the HM Revenue & Customs. The government treasury function has many departments including HMRC and the Department for Work and Pensions and each one is set up to oversee different areas of business such as income tax, value added tax and revenue - all of which you can get help from, or you can contact your accountant for advice.

HM Revenue & Customs can support your business by answering the majority of tax related questions and may even reduce the burden of revenue and income tax recording for smaller businesses while keeping UK tax business regulated. Some might argue HMRC make things seem very complicated which is why small businesses and start-ups need to gain knowledge, or at the very least a superb piece of software or indeed a good accountant! that can help with accounting calculations in each accounting year. You may already be aware of forms that Inland Revenue provide you with to declare your income if you have ever been expected to conduct the all too familiar self-assessment tax return form This highlights the importance of accounting and using good accounting services to record accounting calculations accurately.

The officers of HM Revenue & Customs have authority to carry out business information searches, on or off your business premises, and can take action based on suspect transactions so the importance of accounting here is scarily obvious. Good accurate accounts using accounting calculations recorded in an accounting ledger can save future problems with HMRC.

In 2007-08 HMRC introduced the new self employed tax return in 2 versions the full tax return and the short tax return replacing the old self assessment tax return form. The determing factor as to whether the full or short tax return was completed was set at a sales turnover of 64,000 which was also the vat threshold 2007-08 above which a business is legally responsible to be vat registered. The 2008-09 sef employed tax return shows a threshold for completing the full tax return of the new vat threshold of 67,000.

The important tax implication of this is when business turnover exceeds the vat registration threshold is liable to pay value added tax on those sales whether vat registered or not vat registered.

DIY Tax Accounting produce tax accounting software for company accounts and self employed business that incorporate tax software to automate the self employed tax returns for sole traders and the CT600 corporation tax return for a limited company. Small business accounting software designed to produce tax accounting solutions for non accountant business clients to complete their tax affairs.

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