What is the primary responsibility of HMRC in the UK tax system?

The primary responsibility of HMRC, which stands for Her Majesty’s Revenue and Customs, in the UK tax system is the administration and management of taxes. This encompasses a wide range of functions, including the collection of various taxes (such as income tax, corporation tax, and VAT), enforcement of tax regulations, and the implementation of tax policies set by the government.

In addition, HMRC is tasked with ensuring compliance; this means monitoring and conducting audits to make sure taxpayers fulfill their obligations. It also involves implementing and managing systems for tax return submissions and dealing with any tax disputes or inquiries.

While the collection of VAT is an important aspect of HMRC's responsibilities, it represents just one part of a much broader role. Similarly, safeguarding taxpayer information is a vital concern, but it is integrated within the overarching framework of tax administration rather than being the central focus. Monitoring the economy and inflation is typically within the purview of other governmental bodies, such as the Bank of England, rather than HMRC's direct responsibilities. Hence, the comprehensive nature of HMRC's duties makes administration and management of taxes the most fitting description of its primary responsibility.