Why HMRC Has Decided Not To Show Mercy.

What is HMRC?

The HMRC is also known to be named as the ‘Her Majesty’s Revenue and Customs.’ It is basically the tax collection department of the UK. They generally focus on the tax returns and their maintenance.

They make sure that all the taxes are very much collected and returned within their stipulated time. People who do not do that have to face their equal share of wrath from the department.

What Are The Penalties That One May Have To Face?

There are various penalties that one may have to face for the skipping of the tax. The penalties basically are segregated according to the amount of crime. There at times have been cases that the person had a sudden downfall or has somehow forgotten to pay the tax, and that should be considered as the unintentional one, and the HMRC will still charge a penalty of anywhere near £1300 to the higher amounts.

But in cases where there has been an intentional delay accompanied with fake documents and lies during the investigation, the penalties have increased to the limitation of being put in the jail and named and shamed for the same. The penalties also depend on the various time limits. For example 3 months from the due date and then the 6 months from the due date, etc.

How Has The Penalty Changed Over These Many Years?

The system of the penalty has actually changed over the years and so has the rates. Where people are now getting charged a minimum of £1300 as a penalty, there was a time they used to get charged only an addition of £200 maybe.


And then they would continue doing the same without any remorse. The change in charging the penalties have increased over the years, and it will remain that way according to the HMRC.

So Why Does HMRC Believe In Penalty?

It is a basic human nature that people at times hardly understands stuff until handles with punishment. That is exactly what they used to do being kids. Our parents used to handle us the same very way.

They used to use strict actions for things that we shouldn’t be doing. HMRC has taken up the same concept. According to them, the people who pay tax are not kids anymore, which in fact is true, and they should, therefore, be much more responsible. Thus punishing them is the only way.

Why Doesn’t HMRC Believe In Showing Mercy?

They believe that even if a person is in trouble, some amount should be deducted from them as a penalty so that the people do not get influenced by them. Many may start faking stories and reports for the mercy.

Showing mercy with one intentional skipper can be thus more dangerous. People generally learns and gets influenced from the very same. Thus, if they learn mercy on any one of the culprits then definitely the others will start the same.

The HMRC has definitely made their point but doing all that is necessary. People needs to change and start with paying the taxes, as they are really helpful to the crowd.

Calculating Your HMRC Tax

HMRC is known as Her Majesty’s Revenue and Customs and sometimes called the HM Revenue and Customs or often HMRC is a UK’s non-ministerial government department, which is out and out responsible for collecting taxes and other duties from the citizens of the country. These types of collection and taxes, the payment of such kinds of forms done with the help of state support, as well as the administration of other government regulatory regimes combining the UK national minimum wage.

Things To Know About  HMRC

If you need, you can use HMRC language service, also the contact, which is related to the HM revenue and customs, which is shortly called HMRC. You can dial the helpline whether you are not happy with the service you got. Generally, HMRC has complete guidance about the complaint as well as the things happen next. There is a separate process for the purpose of complaints and reporting:

  • Complaints about the HMRC online service.
  • Reporting serious misconduct by the HMRC employees.

Whether HMRC needs to contact you anytime about anything that is completely confidential in their sense, then they will surely reply you by phone or by post. Call HMRC for the purpose of advice on Self Assessment.

Strategic Tax Policy & Other Policy

Whether you have an NI, which is called National Insurance number as well as Self Assessment Unique Taxpayer Reference, which is shortly called UTR then must have them with you at the time you phone them. So you can contact them for Self Assessment online services for the purpose issues filling your tax return online or whether you have lost the online service user id, name and/or password.Generally, the Treasury leads on its strategic tax policy as well as policy development.


Responsibility Of HMRC

HMRC is one of the authoritative government tax wings, which leads to policy maintenance as well as tax implementation. This policy and tax arrangement for the purpose of policy making is well-known as the ‘policy partnership’ in the entire United Kingdom. Let us see their responsibility.

  • They are mainly responsible for the purpose of safeguarding the flow of money to the Exchequer by way of collection, compliance as well as enforcement activities.
  • With their rules, they make sure that monetary transaction is available to fund in the United Kingdom’s public services.
  • They always facilitate the entire legitimacy in international trade. They protect the United Kingdom’s fiscal, economic, social as well as physical security prior to collection of the trade statistics.
  • They administer the Statutory Payments, like statutory sick pay as well as statutory maternity payment.

They also have lots of other responsibilities that help them to manage and control the tax flow in the country and if you find any issue you can get in touch with them by HMRC phone number. They are out and out responsible for income tax and corporation tax, most of the time collect capital gains tax, various kinds of inheritance tax, insurance premium tax, and another land as well as petroleum revenue taxes as well.

Tips On How To Handle HMRC Winding Up Orders

When creditors fail every single attempt of recovering a debt that they had lent to a business company, often, as a last resort, they use the HMRC “Winding up Order” or petition. This is an order that they petition the court to ensure that the intended company is liquidated. This way, the court aids the creditor company to recover the amount of money that they lent.

How Serious Is It?

It takes quite a great deal of money on the creditor’s part to place the petition to the court about the intended company for liquidation. No doubt, this is a serious issue that the creditor company agrees to go to this extent. Once the petition is formed, there is technically no other option left for the company to repay the amount that it owes to the creditor. The business is liquidated, and hence, there is no other resort that it can take.

What The Petition Does To You?

The creditor, which in most cases is Her Majesty’s Revenue and Customs (HMRC), can petition to the court about your company’s inability to pay back the due credits and payments and the inability to meet the liabilities. In this case, the court will announce a “hearing date,” on which the petition will be read out to the company. It is by this time that the debtor company will have to take all the necessary legal actions to prevent this petition or at least handle it skilfully.

Can You Avoid It?

Not appearing for the hearing and not mounting up any defense will end up with the announcement of the “Winding up Order” against the company, by the court. The creditor company can even go to advertise the petition and thus, alert all the creditors in the market about the company’s inability to meet liabilities.

How Does The Petition Work?

From the announcement or receiving of the petition, there is 7 days’ time for the company to repay the debt. If the creditor goes to the extent of advertising the petition, it will alert the banks and the banks will freeze the company account. In that case, you need to follow strict legal procedures to re-open the frozen bank account, with this guarantee that the account will help in the business transactions and dealings so that the debt can be repaid.

If within 7 days’ time, the debt amount cannot be raised, the court will assign a Licensed Insolvency Practitioner. He will value and sell the assets of the company to recover the amount. The amount will now include the cost of the petitioner, along with the debt amount.

Things To Do:

  • Ask for CVA:

A legal adviser of the company will request to adjourn the petition and ask for a Company Voluntary Arrangement or CVA. With this, the company will come to terms with the creditor to ask for a longer period of time to pay the debt.

  • Postpone Advertisement:

You can take out an injunction to postpone the advertisement of the petition so that the other creditors do not become alerted, and the bank doesn’t freeze the account.

  • Dispute The Petition:

If the petition is false, you can dispute the petition. This is a very serious step as the creditor company will then be charged for the ‘abuse of court process.’ This should be backed up with heavy and serious evidence.


Whatever is the case with you, it is a must that you take professional help of skilled and experienced legal practitioners to prevent this condition. It is never without prior indication that the creditor company can file a petition. Make use of the information and take proper action.