HM Revenue and Customs has made £11.18 million available
HM Revenue and Customs (HMRC) has more than doubled its financial support for organisations that assist people in managing their tax affairs, addressing tax debts and claiming financial support to which they may be entitled.
Over £11 million will be distributed through the tax authority’s Voluntary and Community Sector Grant Funding Scheme, which backs charities and community organisations offering free advice and assistance to customers requiring additional help. The funding package, totalling £11.18 million across three years from April 2027, represents more than twice the £5.5 million provided under the previous scheme.
HMRC stated the funds will enable organisations to support people who may find it difficult to comprehend their tax responsibilities, have complicated circumstances or lack digital access to HMRC services.
Successful organisations will collaborate with HMRC’s Extra Support Team to assist customers in managing their tax affairs, navigating digital services and claiming benefits and entitlements for which they may qualify. Applications for the latest funding round can be submitted via GOV.UK and will remain open until July 3, 2026, reports the Daily Record.
According to HMRC, more than 43,000 customers received support from grant-funded organisations between April 2025 and April 2026. The tax authority stated the scheme enables people to engage with HMRC in a manner that suits them and obtain vital information regarding their finances and entitlements.
Dan Tomlinson, Exchequer Secretary to the Treasury, said: “I’m delighted to build on our commitment to customers who need the most support and make this latest round of funding available for our partners in the voluntary sector who provide invaluable assistance to them.
“This funding means customers, who may be struggling with their tax affairs, are able to get the help they need to make a real difference to their situation.”
HMRC shared the experience of Elena, a self-employed hairdresser from south-east England who turned to support services after falling behind with her tax obligations while navigating significant personal challenges.
At that time, she was claiming Universal Credit and facing financial hardship in the wake of a family bereavement and divorce. She had accumulated arrears on her rent and council tax, and owed HMRC £1,093, which included penalties and interest charges.
Following contact with a grant-funded organisation, a volunteer adviser assisted her in completing three years’ worth of overdue tax returns.
While this initially pushed her tax liability up to £1,824.34, the organisation then approached HMRC on her behalf and managed to have the late filing penalties and related interest charges waived. Consequently, the sum she was required to repay dropped to approximately £503.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “We are all about making it easier for people to get their tax right and by working closely with our Voluntary and Community sector partners we can ensure our customers who need extra support have access to help when they need it most.”
Successful organisations will be announced later this year, with the funding due to commence from April 2027.
