- More than £11 million in funding available for organisations to help customers with their tax affairs.
- Voluntary and Community sector organisations invited to bid for funding from today.
- Successful organisations will receive three-year funding grants from April 2027.
HM Revenue and Customs (HMRC) has pledged more than £11 million to support customers who need extra help, as it launches the latest round of its Voluntary and Community Sector Grant Funding Scheme.
Bids can be submitted from today (8 June) for the funding, which is available for voluntary and community sector organisations to provide specialist advice and support to HMRC customers who may need extra help with their tax affairs, interacting with its digital services, which continue to expand, or claiming entitlements.
HMRC has more than doubled the three-year grant funding allocation to £11.18 million starting April 2027. Applications can be submitted on GOV.UK until 3 July.
Organisations applying for the funding must show they can provide independent tailored support to customers who may experience barriers including those who
- may face difficulties in understanding their tax obligations
- may have complex needs
- are digitally excluded from accessing HMRC services
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.
Successful organisations will work alongside HMRC’s Extra Support Team to ensure customers get straightforward advice and support in dealing with their tax affairs and ensuring they get the benefits they are entitled to receive.
Between April 2025 and April 2026, more than 43,000 customers, helped by grant-funded organisations working closely with HMRC’s Extra Support Team, were able to engage with HMRC in a way that works for them and access the information they need.
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.
The grants, worth £3.73 million a year, will be awarded quarterly over the 3 years between April 2027 and April 2030. Successful organisations will be announced later this year.
For more information on the Voluntary and Community Sector Grant Funding Scheme, eligibility and to apply, go to GOV.UK.
Case Study
Elena*, who is from the South East of England, works as a self-employed hairdresser, partly at home and partly in a salon where she rents a chair. When she contacted a Voluntary and Community Sector grant-funded organisation in September 2024, she was struggling with depression following the loss of a family member and divorce. In her mid-forties, she had no sustainable income, was receiving Universal Credit, and struggling just to afford the basics. She was behind with her rent and Council Tax as well as a tax debt of £1,093, including Late Filing Penalties and interest.
Elena got in touch about her tax debt and three years of outstanding tax returns. As someone who had always struggled with maths, she found it difficult to manage her tax. One of the volunteer advisers worked with Elena to help her complete her outstanding tax returns which resulted in an increase in her tax liability to £1,824.34.
After the grant-funded organisation contacted HMRC, they waived the Late Filing Penalties and associated interest leaving only the tax balancing payments and a small amount of interest, totalling £503 to pay. Elena emailed the volunteer who had supported her to express the real difference our support had made to her future.
*Not her real name
Further Information
Previous funding was awarded from April 2024 to April 2027, totalling £5.5 million.
A current list of funded organisations can be found on GOV.UK.
Successful organisations are monitored during the financial year. Payment is made in stages and HMRC has mechanisms in place to stop or withhold funding during the period if the terms of the grant are not being met.
Before funding is agreed and any money paid out, HMRC undertakes a stringent due diligence process to ensure the organisations comply with the standards set out in the Cabinet Office guidance.
Successful organisations are expected to deliver agreed outcomes and to report on progress on a regular basis.
Successful organisations will also provide HMRC with valuable insight that will help us to support our hardest to reach customers in the future, as well as help them build a relationship with HMRC so they can deal directly with us in the future.
HMRC encourages any customer who feel they need extra help on tax or benefits matters to get in touch, through a Voluntary and Community Sector grant-funded organisation, to discuss their situation.