People struggling with tax bills are set for extra help under an £11 million HMRC scheme. HM Revenue and Customs (HMRC) has more than doubled funding for organisations that provide free support to people struggling with tax affairs, debt and financial hardship.
Funding boost for voluntary sector
More than £11 million will be made available through the tax authority's Voluntary and Community Sector Grant Funding Scheme, which supports charities and community organisations that provide free advice and assistance to customers who need extra 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 said the money will help organisations provide support to people who may struggle to understand their tax obligations, have complex needs or are digitally excluded from accessing HMRC services.
How the scheme works
Successful organisations will work alongside HMRC's Extra Support Team to help customers deal with their tax affairs, use digital services and access benefits and entitlements they may be eligible for. Applications for the latest round of funding can be made on GOV.UK and will remain open until July 3, 2026.
According to HMRC, more than 43,000 customers received support from grant-funded organisations between April 2025 and April 2026. The tax authority said the scheme helps people engage with HMRC in a way that works for them and access important information about their finances and entitlements.
Government and HMRC comments
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: "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."
Case study: Elena's story
HMRC highlighted the case of Elena, a self-employed hairdresser from south-east England who sought help after falling behind with her tax affairs while dealing with personal difficulties. At the time, she was receiving Universal Credit and struggling financially following a family bereavement and divorce. She had fallen behind with her rent and council tax and owed HMRC £1,093, including penalties and interest.
After contacting a grant-funded organisation, a volunteer adviser helped her complete three years of outstanding tax returns. Although this initially increased her tax liability to £1,824.34, the organisation subsequently contacted HMRC and successfully secured the removal of late filing penalties and associated interest. As a result, the amount she needed to repay was reduced to around £503.
Successful organisations will be announced later this year, with funding set to begin from April 2027.
