HMRC touches almost every adult in the United Kingdom, yet most people only think about it when a tax return is due or a letter lands on the doormat. This guide breaks down what Her Majesty's Revenue and Customs actually does, how it is governed, what digital tools are available to taxpayers, and how the department enforces compliance against everything from minor underpayments to large-scale criminal activity.
Key Takeaways
HM Revenue & Customs is the UK's tax, payments and customs authority, collecting hundreds of billions of pounds each tax year to fund the UK's public services including the NHS, schools and defence.
HMRC was formed on 18 April 2005 as a non ministerial department and oversees most of the UK's tax system, customs duties and national insurance contributions.
Taxpayers interact with HMRC through online services, the hmrc app, phone helplines and post, with improved online services rolling out via GOV.UK One Login.
The department's Fraud Investigation Service tackles serious tax evasion, smuggling and tax fraud, while a new whistleblower reward scheme launched in 2025 offers financial incentives for high-value intelligence.
Controversies including data loss incidents, discrimination cases and whistleblower handling have shaped reforms across data security, equality and the HMRC Charter.
What Is Her Majesty’s Revenue and Customs?
HMRC is the UK's official tax, payments, and customs authority. It is responsible for collecting money that funds the UK's public services and for administering targeted benefits such as Child Benefit and tax credits. Put simply, if the government collects or distributes money in the UK, HMRC is almost certainly involved.
The department was created on 18 April 2005 by merging two older bodies: the Inland Revenue (which handled direct taxes) and HM Customs and Excise (which managed VAT, excise duties and border controls). The merger was first announced on 17 March 2004 and was formalised when the Commissioners for Revenue and Customs Act 2005 received royal assent on 7 April 2005. David Varney served as the first executive chairman, overseeing the enormous task of combining two organisations with distinct cultures, systems and legal powers. HMRC's headquarters is located at 100 Parliament Street, Whitehall.
The formal name shifts between "His Majesty's Revenue and Customs" and "Her Majesty's Revenue and Customs" depending on the reigning monarch. In everyday use, most people simply say hm revenue customs or HMRC.
As a non ministerial department, HMRC operates at arm's length from ministers in its day-to-day work. Its broad remit covers the UK's tax system, customs checks at borders, national insurance, tax credits, Child Benefit and regulatory functions such as anti-money laundering registration. The sections below unpack each of these areas, from governance and digital access to enforcement powers and key controversies.
HMRC’s Core Responsibilities and the UK’s Tax System
Understanding what hm revenue customs actually collects and pays out puts the department's scale into perspective. Here is a breakdown of its main areas of responsibility.
Direct taxes:
Income Tax on earnings, savings and investments
Corporation Tax on company profits
Capital Gains Tax on asset disposals
Inheritance Tax on estates above the threshold
HMRC is responsible for collecting Income Tax and Corporation Tax, which together form the largest share of government revenue.
Indirect taxes:
VAT on goods and services
Excise duties on alcohol, tobacco and fuel
Environmental levies
Stamp Duty Land Tax on property transactions
Payments and benefits:
National insurance contributions, which fund state benefits including the State Pension
Child Benefit payments for families
Tax-Free Childcare and tax credits
Tax reliefs and credits for low-income individuals
HMRC distributes targeted financial support for families alongside collecting revenue, meaning it both takes in and pays out money on a massive scale.
Customs authority role:
HMRC manages the UK's customs system and oversees import and export duties for goods entering or leaving the UK. Working alongside Border Force, it tackles smuggling, counterfeit goods and sanctions evasion. Additional regulatory functions include anti-money laundering supervision for certain professions and enforcement of the National Minimum Wage.
To put the scale in context, HMRC collected £660 billion for the Treasury in 2018/19. Those receipts underpin NHS funding, schools, defence and the wider supply of the UK's public services.
Governance, Board Structure and Non-Executive Directors
HMRC is a large non ministerial department with a governance model that balances executive leadership and independent oversight. Its board combines senior executives with non executive director appointments who provide external challenge.
The HMRC board sets strategy, approves business plans and monitors performance. Day-to-day operations are led by the chief executive, who also serves as the permanent secretary and accounting officer responsible for propriety and value for money. The current structure places John-Paul Marks in that dual role.
Since 2012, when the separate chairman role was abolished, the board has been chaired by the lead non executive director. Non-executive directors bring private-sector and specialist perspectives, scrutinising risk, digital transformation and major compliance programmes.
HM Treasury sponsors the department, with a Treasury minister, the exchequer secretary, accountable to Parliament for HMRC's overall performance. The board typically meets around six times per year.
HMRC employs over 59,000 staff nationwide, spread across tax, compliance, digital, policy and operational roles. External bodies such as the National Audit Office, the Parliamentary and Health Service Ombudsman and select committees provide additional layers of scrutiny over hm revenue customs operations.
HMRC Online Services and Digital Access
This section is practical. If you need to interact with HMRC digitally, here is how access works and what you can do once you are logged in.
Signing in:
HMRC online services are accessed through either a government gateway account or the newer GOV.UK One Login. From February 2026, new customers without existing credentials can sign up via One Login using an email address and password. Existing Government Gateway users continue with their current login details for now, but the rollout toward a single system is underway.
If you already have HMRC credentials, use your existing government gateway user ID and password. If you are new to HMRC's digital services, follow the GOV.UK One Login registration process.
What you can do online:
File a self assessment tax return and view previous submissions
Check your tax code and personal tax details
Manage PAYE schemes as an employer
View VAT liabilities and submit Making Tax Digital returns
Update your address, phone number or bank details
Send and receive secure messages from HMRC
Separate portals:
Some services still require dedicated access, such as Making Tax Digital software for VAT, customs declarations systems and certain Corporation Tax filing tools.
Security basics:
Keep cookies enabled, use a strong password, and set up multi-factor authentication. If login problems arise, HMRC publishes helpdesk support guidance on GOV.UK. HMRC aims to improve customer interactions through digital services, and the shift toward improved online services is central to that goal.
The HMRC App and Mobile Access
The hmrc app is the quickest way for individuals to access personal UK's tax, national insurance and benefits information from a smartphone. It is free to download from the Apple App Store and Google Play, and requires HMRC online services or GOV.UK One Login credentials.
Core features include:
Viewing your tax code and income summary
Checking how much Income Tax you have paid in the current tax year
Tracking national insurance contributions
Seeing Child Benefit payment details
Receiving secure notifications about deadlines, refund updates or repayments
The app also allows some actions such as updating your address, checking your Unique Taxpayer Reference and viewing state pension forecasts. However, complex tasks like filing a full tax return or managing employer payroll still require full online services.
The app helps manage tax affairs on mobile devices and users can download the HMRC app from app stores at no cost. Security features include biometric login on compatible devices and encrypted connections, meaning your sensitive data stays protected.
The app is part of HMRC's digital transformation strategy, designed to simplify interactions, reduce call-centre pressure and modernise majesty's revenue and customs for mobile-first customers.
Compliance, Investigation and Enforcement Powers
HM Revenue & Customs is not only a service department. It is a powerful enforcement body focused on tackling tax evasion, customs offences and serious financial crime.
Investigation teams:
The Customer Compliance Group and the Fraud Investigation Service handle civil and criminal investigations. HMRC's Fraud Investigation Service investigates serious tax fraud cases, using both civil assessment powers and criminal prosecution where deliberate non-compliance is uncovered. HMRC investigates tax fraud and money laundering across domestic and international structures.
HMRC's criminal investigators have police-like powers. Officers such as a senior investigation officer or Criminal Investigator can conduct searches under warrant, make arrests and seize assets, all subject to rigorous external safeguards. These criminal investigations are coordinated with agencies including the National Crime Agency and the Crown Prosecution Service.
Customs enforcement at the border:
HMRC's customs work extends well beyond collecting duties. In recent years, enforcement has uncovered cases where arms brokers illegally arranged deals worth tens of millions of dollars, supplying assault rifles and even fighter jets to conflict zones. These operations relied on forged paperwork, shell companies acting as a shop front, and a complex network designed to evade uk licences. The investigation uncovered more names linked to dodgy high street traders using legitimate-looking businesses on high streets as cover for criminal activity.
Tax avoidance and the tax gap:
HMRC maintains a tax avoidance scheme list naming promoters and connected persons, and in 2023-24 published details of 40 avoidance schemes, issuing 15 stop notices. The tax gap in 2018/19 was estimated at £31 billion. By 2023-24, total theoretical liabilities had grown and the gap stood at £46.8 billion (5.3%). The government's strategy aims to close a further £7.5 billion through new measures.
HMRC enforces compliance with tax regulations through a mix of guidance for honest taxpayers, Time to Pay arrangements for those in genuine difficulty, and robust penalties and prosecutions for criminals who deliberately cheat the system. HMRC assesses compliance through audits and checks, targeting high-risk sectors, offshore structures and organised evasion.
Whistleblowing and the Strengthened Reward Scheme
Whistleblowers play a critical role in exposing serious tax non-compliance that might otherwise remain hidden. HMRC has long had discretionary power to pay rewards for useful intelligence, but the system was widely seen as opaque.
In late 2025, the government introduced the Strengthened Reward Scheme targeting large corporates, wealthy individuals and complex tax avoidance or evasion structures. Key parameters include:
Rewards typically between 15% and 30% of recovered unpaid tax
A minimum threshold of £1.5 million in additional tax recovered
The scheme took effect from 6 April 2026
Rewards are discretionary, usually exclude penalties and interest, and are not available to anonymous informants. Confidentiality protections and due-process checks are built in.
This scheme fits into the government's strategy for narrowing the UK tax gap, deterring serious non-compliance and signalling that HMRC will pay for information that leads to significant savings for the public purse. It draws on international models, particularly the US and Canadian whistleblower programmes.
Controversies, Data Incidents and Equality Issues
Majesty's Revenue & Customs has faced significant criticism over data handling, customer service and fairness in the last two decades.
2007 Child Benefit data loss:
Two unencrypted discs containing personal details for around 25 million claimants went missing in transit to the National Audit Office. The data included names, addresses, dates of birth, national insurance numbers and bank account details. The incident destroyed public trust, led to the resignation of HMRC Chairman Paul Gray and triggered sweeping reforms to internal data security.
System and coding errors:
In the late 2000s, IT changes led to incorrect tax code notices being sent to millions of taxpayers, resulting in unexpected bills or overpayments. These errors prompted reforms to HMRC's PAYE systems and greater investment in digital accuracy.
Discrimination and equality:
Reports emerged that a high proportion of parents, around 60-70%, had their Child Benefit wrongly suspended during fraud crackdowns. These findings raised serious questions about systemic bias. HMRC leadership issued statements committing to zero tolerance for discrimination and rebuilding confidence among affected communities.
Goldman Sachs and whistleblower handling:
Parliamentary committees criticised HMRC's transparency after a major tax settlement with Goldman Sachs, and the treatment of whistleblower Osita Mba drew attention to the department's use of surveillance powers under RIPA. These episodes underlined the need for better internal governance and external accountability.
HM Revenue Customs has since taken steps to strengthen data security, publish clearer report standards and embed equality considerations. The HMRC Charter, discussed below, is part of that response.
The HMRC Charter and Standards of Service
The HMRC Charter is the public document setting out what people can expect from hm revenue customs and what HMRC expects in return.
Your rights as a taxpayer include three things at a minimum:
To be treated fairly and with respect
To receive clear, accessible information and guidance
To have personal data protected and to challenge or appeal HMRC decisions
Your responsibilities include:
Being honest and accurate in tax returns and correspondence
Keeping good records of income, expenses and transactions
Paying UK's tax on time
Engaging with HMRC when asked for information or details
The Charter informs complaint handling, staff training and external scrutiny. It applies across all channels, whether you contact HMRC by phone, through online services, by post or in person. It is periodically reviewed to reflect changes in service delivery and customer expectations, and it underpins HMRC's effort to balance firm enforcement with a fair, supportive customer experience.
Careers, Roles and Non Executive Director Opportunities
HM Revenue & Customs is one of the UK's largest civil service employers, with over 59,000 staff in jobs spanning frontline compliance, digital engineering, policy and legal work.
Typical roles include:
Tax professionals and caseworkers
Fraud investigators and compliance officers
Data analysts and software engineers
Customer service advisers
Policy specialists and legal advisers
HMRC's investment in AI and digital technology is creating new opportunities for engineers, UX designers and transformation specialists, particularly as the department modernises the hmrc app and online services.
Non executive director positions on the HMRC board offer experienced professionals the chance to provide independent scrutiny on risk, digital change, customer service and major compliance programmes. These roles are publicly advertised and appointed on merit.
Current vacancies across all levels are published on the Civil Service Jobs platform. HMRC recruits through open competition in line with Civil Service principles, and roles are spread across offices throughout the UK.
Frequently Asked Questions
Is HMRC the same as Inland Revenue and Customs & Excise?
Not anymore. HM Revenue & Customs was formed in April 2005 by merging the Inland Revenue (which handled direct taxes like Income Tax) and HM Customs and Excise (which managed indirect taxes, VAT and customs enforcement). HMRC now carries out both sets of functions as a single department. The older names still appear in historical documents and legislation but no longer refer to active organisations.
Do I need to use HMRC online services if I already file through an accountant?
Many agents file returns and manage UK's tax on behalf of clients using their own HMRC agent accounts. However, having a personal HMRC online account or using the hmrc app gives you direct access to check tax codes, track payments, view correspondence and request a refund if one is due. It is worth setting up even if your accountant handles the bulk of your self assessment filing.
How do I know if a call, text or email claiming to be from HMRC is genuine?
HMRC will never threaten arrest by text, ask for bank details via an email link, or demand payment by gift card. If something feels wrong, do not click any link or share personal details. Check official GOV.UK guidance on recognising scams and use known HMRC phone numbers from GOV.UK rather than any number provided in a suspicious message.
Can I complain if I think HMRC has treated me unfairly?
Yes. Start by raising the issue with the relevant HMRC helpline. If that does not resolve things, you can make a formal complaint. If you remain unhappy, escalate to the Adjudicator's Office and, in some cases, the Parliamentary and Health Service Ombudsman. The HMRC Charter sets out your right to fair treatment and gives you clear grounds for challenging decisions you believe are wrong.
Does HMRC operate in Scotland, Wales and Northern Ireland in the same way?
HMRC administers most UK-wide taxes across all four nations. However, some taxes are devolved. Scotland has its own Land and Buildings Transaction Tax and Scottish Income Tax rates, while Wales operates Land Transaction Tax. Taxpayers in those nations may interact with both hm revenue customs and their national revenue body depending on the specific tax in question.
