HMRC announces £11million funding boost for charities helping taxpayers in difficulty

HM Revenue and Customs (HMRC) has announced an £11.18million funding package for charities and community organisations that help people struggling with tax and financial difficulties.

The tax authority said the funding will be made available over three years from April 2027 through its Voluntary and Community Sector Grant Funding Scheme.

The latest package represents a significant increase from the £5.5million allocated under the previous scheme.

Funding will support organisations providing free advice and assistance to people who need extra help managing their tax affairs, dealing with debt and accessing financial support.

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HMRC said the scheme is designed to assist customers who may struggle to understand their tax obligations, have complex personal circumstances or are unable to access digital services.

Organisations receiving funding will work alongside HMRC’s Extra Support Team to help customers manage their tax affairs and navigate online systems.

HMRC said more than 43,000 customers received support from grant-funded organisations between April 2025 and April 2026.

The tax authority said the programme helps customers engage with HMRC in a way that suits their needs while improving access to financial guidance and support.

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."

Myrtle Lloyd, HMRC’s chief customer officer, said the organisation wanted to make it easier for people to manage their tax affairs correctly.

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Ms Lloyd 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."

HMRC also highlighted the case of Elena, a self-employed hairdresser from south-east England, who received support through one of the funded organisations.

Elena had fallen behind on her taxes while dealing with a family bereavement and divorce and was also claiming Universal Credit.

She owed HMRC £1,093 in unpaid tax, penalties and interest in addition to rent and council tax arrears.

A volunteer adviser helped her complete three years of overdue tax returns, increasing the total amount owed to £1,824.34.

However, the organisation later negotiated with HMRC to have late filing penalties and interest charges removed, reducing the outstanding amount to around £503.

Applications for the latest round of funding are open through GOV.UK until July 3, 2026.

Successful organisations are expected to be announced later this year.

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