How HMRC collects tax revenue to support Government policy
A HMRC case study

Page 1: Introduction

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The UK Government provides a range of public goods and services. The main ones include: education benefits law and order defence roads National Health Service. Within the UK, public expenditure is largely financed through taxation and Her Majesty's Revenue and Customs (HMRC) collects most taxes. This case study focuses upon the role of HMRC in collecting taxes and how these help the...
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Page 2: Control of the economy

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The UK economy changes year after year. The UK government seeks to achieve many policies including economic growth, improving the standard of living of people within the country, controlling inflation and reducing unemployment. Its policies will determine the nature and type of decisions that it makes. The government controls the economy in a number of different ways. One way is through legal...
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Page 3: Monetary and fiscal policy

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The main objectives of the Government are to: maintain full employment control inflation achieve a balance of payments equilibrium stabilise exchange rates steady economic growth improve the standard of living of people within the country. Successive governments have used two broad types of strategy to achieve these objectives. These are through the use of: a) monetary policy b...
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Page 4: Collecting income taxes and administering benefits

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One of the most important principles of taxation is that of convenience. Taxes must be collected in a convenient form and at a convenient time. Income tax is a tax that is paid on income. It is paid by: a) employees b) people who are self employed (partners and sole traders) c) individuals who may not be working but have an income. Paying income tax When people are employed they are liable...
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Page 5: Communication systems and taxation

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A good communication system involves effectively transferring information between a sender and a receiver. HMRC has developed effective communication systems to ensure the collection of tax revenues is efficient. HMRC has developed effective communication systems to ensure the collection of tax revenues is efficient. They are quick, secure and convenient. They use the latest technology to simplify...
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Page 6: Conclusion

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HMRC's role is vital for the government's control of the economy. Its innovation in using online technology has made tax collection easier and made it harder for income taxes to be evaded. It uses tax revenue to finance its plans for the economy. Society has benefited from all the projects and services that are provided through public expenditure. HMRC's role is vital for the government's...
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