HM Revenue and Customs (HMRC) has significantly increased its financial commitment to organisations that help people who struggle with their tax affairs, announcing a new multi-year funding package worth more than £11 million.
The move is aimed at strengthening support for individuals who face barriers in understanding or accessing tax services, particularly as more services move online.
The funding boost more than doubles previous allocations, reflecting what HMRC describes as a rising need for targeted assistance among vulnerable and digitally excluded customers.
Voluntary Sector Opens Bidding for New Grant Programme
From 8 June, voluntary and community sector organisations can begin applying for the latest round of HMRC’s Grant Funding Scheme.
Applications will remain open until 3 July via GOV.UK, with successful applicants set to begin receiving support from April 2027.
The programme is designed to back specialist organisations that can provide independent, tailored help to people dealing with complex tax issues, difficulties navigating digital systems, or challenges claiming entitlements.
HMRC says the initiative will strengthen its ability to reach individuals who might otherwise struggle to interact effectively with its services.
Targeting Barriers in Tax and Digital Access
To qualify for funding, organisations must demonstrate that they can support people facing specific challenges, including those who:
- struggle to understand tax responsibilities
- have complex personal or financial circumstances
- are unable to access online HMRC services due to digital exclusion
The aim is to ensure that support goes beyond general advice, offering hands-on guidance for people most at risk of falling through the gaps.
Government Says Funding Will Improve Access and Fairness
Exchequer Secretary to the Treasury Dan Tomlinson welcomed the expanded scheme, describing it as a reinforcement of government efforts to ensure taxpayers receive the help they need.
He highlighted the importance of voluntary sector partners in assisting individuals who are struggling to manage their tax affairs, adding that the support could make a meaningful difference to people’s financial stability and wellbeing.
Thousands Already Reached Through Existing Support
HMRC reported that between April 2025 and April 2026, more than 43,000 customers received help through organisations funded under the current scheme.
These services, delivered in partnership with HMRC’s Extra Support Team, enabled individuals to engage with the tax system in more accessible and practical ways.
Officials say the collaboration has been key to helping customers not only resolve immediate issues but also better understand their ongoing obligations.
Stronger Partnership Between HMRC and Support Organisations
HMRC’s Chief Customer Officer Myrtle Lloyd said the agency is focused on simplifying tax processes and ensuring that those who need additional help can access it quickly.
She emphasised the role of voluntary and community organisations in bridging the gap between customers and HMRC, particularly as digital services continue to expand.
The new funding package will also allow these organisations to share insights that could shape future support strategies.
Case Study: How Targeted Help Changed One Taxpayer’s Situation
A real-life example highlights the impact of the programme. “Elena” (not her real name), a self-employed hairdresser from the South East of England, sought help in 2024 after facing severe personal and financial difficulties, including depression, bereavement, divorce, and mounting debts.
Struggling with tax returns and unable to manage her finances, she owed more than £1,000 in tax-related charges, including penalties and interest.
With support from a grant-funded advice organisation, she completed several outstanding tax returns, although her assessed liability increased to £1,824.34.
However, after intervention and communication with HMRC, penalties and interest were waived, reducing her payable amount to £503.
Elena later expressed gratitude for the assistance, saying it had made a significant difference to her future stability.
Funding Structure and Oversight Arrangements
The newly announced grants will total £3.73 million annually, distributed over a three-year period from April 2027 to April 2030.
Payments will be made in quarterly instalments, with successful organisations expected to meet defined performance outcomes.
HMRC confirmed that strict monitoring procedures will be in place, including the ability to withhold funding if conditions are not met.
All applicants will also undergo detailed due diligence in line with Cabinet Office standards.
Organisations receiving support will be required to report regularly on their progress and outcomes.
How Organisations and Customers Can Engage
HMRC has encouraged eligible voluntary groups to apply and participate in the scheme, noting that the funding is intended to strengthen long-term support for customers who need extra assistance.
Customers who feel they may benefit from help with tax or benefits issues are also being urged to contact grant-funded organisations to receive tailored advice and guidance.
