His Majesty's Revenue and Customs (commonly HM Revenue and Customs, or HMRC)[4][5] is a non-ministerial department of the UK government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers.

Other aspects of the department's responsibilities include National Insurance Contributions (NIC), the distribution of Child Benefit and some other forms of state support including the Child Trust Fund, payments of Tax Credits, enforcement of the National Minimum Wage,[7] administering anti-money laundering registrations for Money Service Businesses[8] and collection and publication of the trade-in-goods statistics.

Fraud Investigation Service are responsible for seizing (or preventing the loss of) billions of stolen pounds of HMG's revenue.

Their skills and resources include the full range of intrusive and covert surveillance and they are a senior partner in the Organised Crime Partnership Board.

The merger of the Inland Revenue and HM Customs & Excise was announced by then chancellor of the Exchequer Gordon Brown in the budget on 17 March 2004.

As part of the spending review on 12 July 2004, Gordon Brown estimated that 12,500 jobs would be lost as result of the merger by March 2008, around 14% of the combined headcount of Customs (then around 23,000) and Inland Revenue (then around 68,000).

Executive chair and permanent secretary Non-executive board members as of November 2019:[28] Source:[29] See civil service grading schemes for details.

[32] HMRC guidance notes that flexible arrangements can be made, where necessary, to assist individuals and businesses who have unpaid tax debts.

[34] On 20 November 2007, the Chancellor of the Exchequer, Alistair Darling, announced that two discs that held the personal details of all families in the United Kingdom claiming child benefit had gone missing.

[41] Dave Hartnett, permanent secretary for tax at HMRC, said the department operates a zero-tolerance policy on racial discrimination.

[citation needed] Following this HMRC used powers under the Regulation of Investigatory Powers Act (RIPA) "to examine the belongings, emails, internet search records and phone calls of their own solicitor, Osita Mba, and the phone records of his then wife" to find if he had spoken to the investigations editor of The Guardian, David Leigh.

[42] MPs in the House of Commons public accounts committee praised Osita Mba and called for scrutiny into HMRC's use of RIPA powers in a report.

[44] HMRC alleged that the "unscientific and out-of-date survey of tweets" did "not represent the real picture" but said that 3000 extra staff had been taken on to respond to calls.

[45] In November 2024, HM Revenue and Customs began refunding several major British companies, including firms listed on the London Stock Exchange and ITV, following a landmark ruling by the European Court of Justice (ECJ).

[46] The European Commission initially contended that this exemption provided undue benefits to British companies, constituting illegal state aid, and required the UK to collect back taxes.

This funding has led to an increase in staffing within the Customer Compliance Group (CCG) and the Fraud Investigation Service (FIS).

This investment underscores HMRC's ongoing dedication to protecting public revenue and ensuring tax compliance across the UK.

Yves Laffont, Sector Lead for Financial Crime Consulting Services at FDM Group, noted that HMRC's efforts serve as a model for businesses looking to strengthen their own fraud prevention teams.

Laffont highlighted that fraud accounts for over 40% of recorded crimes in England but receives only 2% of police resources, which disproportionately affects vulnerable populations.

He stresses the importance of establishing a risk management mindset and fostering adaptability to change as key components of successful fraud prevention strategies.

The organization is actively working to improve systems that prevent fraudulent access to charitable tax reliefs, recognizing growing vulnerabilities in the nonprofit sector.

Common issues include outdated financial records, incorrect documentation of authorized officials, and improper gift aid claim submissions.

HMRC is taking proactive steps to support organizations by developing more interactive guidance, utilizing social media platforms, and creating clearer communication channels to help charities understand complex tax regulations.

Trustees of charitable organizations are strongly advised to seek professional financial guidance, especially when dealing with complex monetary matters.

The broader context suggests that while tax fraud in charities is a growing concern, HMRC's approach is focused on education and prevention rather than purely punitive measures.