HM Revenue and Customs (HMRC) has more than doubled its funding for organisations that assist people in managing their tax affairs, tackling tax debts and accessing financial support to which they may be entitled.
Over £11 million is set to be made available through the tax authority’s Voluntary and Community Sector Grant Funding Scheme, which backs charities and community organisations providing free advice and assistance to customers who require additional help. The funding package, worth £11.18 million over three years from April 2027, is more than double the £5.5 million allocated under the previous scheme.
HMRC confirmed the money will enable organisations to support people who may struggle to understand their tax obligations, have complex needs or are digitally excluded from accessing HMRC services.
Successful applicants will work alongside HMRC’s Extra Support Team to help customers manage their tax affairs, navigate digital services and access benefits and entitlements for which they may be eligible.
Applications for the latest round of funding 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 that the scheme helps people engage with HMRC in a manner that suits them, while gaining access to 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 drew attention to the case of Elena, a self-employed hairdresser from south-east England who sought assistance after falling behind with her tax obligations while navigating personal hardships.
At the time, she was claiming Universal Credit and facing financial difficulties following a family bereavement and divorce. She had accumulated arrears on her rent and council tax, and owed HMRC £1,093, including penalties and interest.
Upon reaching out to a grant-funded organisation, a volunteer adviser stepped in to help her complete three years’ worth of outstanding tax returns.
While this initially raised her tax liability to £1,824.34, the organisation subsequently approached HMRC and successfully negotiated the removal of late filing penalties and the associated interest charges.
Consequently, the total amount she was required to repay was slashed 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.”
Organisations that secure funding will be revealed later this year, with financial support set to commence from April 2027.
