The treasury has more than doubled the amount of money available to charities and community organisations that help vulnerable taxpayers navigate the tax system, deal with debts and claim money they may be entitled to.
The new funding package, worth £11.18 million over three years, will begin in April 2027 and comes as more HMRC services move online.
Officials say the money will help organisations support people who find dealing with tax difficult, including those with complex needs, those who struggle to understand their tax obligations and people who are digitally excluded.
Treasury minister Dan Tomlinson said the extra funding would make a real difference to people facing financial difficulties.
“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,” he said.
“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.”
The announcement follows a year in which more than 43,000 people received help from organisations funded through the scheme.
HMRC says the support can include assistance with tax returns, understanding letters from the tax office, dealing with tax debts and ensuring people receive benefits and entitlements they may have missed.
Tax debt cut from £1,824 to £503
One case highlighted by HMRC involved “Elena”, a self-employed hairdresser who was struggling financially following a family bereavement and divorce.
The woman, who was receiving Universal Credit, had fallen behind on her rent, council tax and HMRC payments while also dealing with depression.
She had three years of outstanding tax returns and initially faced a tax bill of £1,824.
After receiving support from a grant-funded organisation, advisers helped her complete her tax returns and contacted HMRC on her behalf.
The tax authority agreed to remove late filing penalties and interest charges, reducing the amount she owed to around £503.
According to HMRC, the support made a significant difference to her financial situation.
HMRC Chief Customer Officer Myrtle Lloyd said the goal was to make the tax system easier to navigate.
“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.”
Applications for the funding programme are now open, with charities and community organisations able to apply until July 3.
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Who could get help?
The funding is aimed at organisations that support people who:
- Struggle to understand tax rules
- Have complex personal circumstances
- Need help completing tax returns
- Cannot easily access online HMRC services
- Need assistance claiming benefits or entitlements
- Require support dealing with tax debts
Successful organisations will be announced later this year and will receive funding between April 2027 and April 2030.
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