HMRC has launched the latest round of its Voluntary and Community Sector Grant Funding Scheme, pledging more than £11 million for organisations that support people who struggle to deal with the tax authority directly. The three‑year allocation has been increased to £11.18 million from April 2027, more than double the £5.5 million awarded over the previous 2024–2027 funding cycle.
The grants, worth £3.73 million a year, will be awarded quarterly between April 2027 and April 2030, with successful organisations due to be announced later this year. HMRC says the programme is designed to ensure no one is left behind as it continues to expand digital services and encourage more customers to self‑serve online.
Who the scheme is designed to help
The funding is aimed at voluntary and community sector organisations that can offer free, independent and tailored advice to customers facing barriers in dealing with HMRC. This includes people who find it difficult to understand their tax obligations, those with complex needs, and individuals who are digitally excluded from accessing HMRC’s online services.
Successful organisations will work alongside HMRC’s Extra Support Team, helping customers to manage their tax affairs and claim the benefits and entitlements they are due. Between April 2025 and April 2026, more than 43,000 customers were supported by grant‑funded organisations working with the Extra Support Team to engage with HMRC “in a way that works for them.”
Exchequer Secretary to the Treasury Dan Tomlinson said the new funding round underlined the government’s commitment to people who need the most help. He commented: “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.”
Tomlinson added that the grants are intended to make a practical difference for people who are struggling with their tax position. “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,” he said.
Myrtle Lloyd, HMRC’s Chief Customer Officer, stressed the importance of partnerships with frontline advice providers. She 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 highlighted a case study to illustrate how funded advice can turn around a difficult situation. “Elena”, a self‑employed hairdresser in the South East, was facing depression following bereavement and divorce, with no sustainable income, mounting rent and council tax arrears, and a tax debt of £1,093 including late filing penalties and interest.
Struggling with maths and three years of outstanding tax returns, she sought help from a grant‑funded organisation, which worked with her to complete her returns, increasing her basic tax liability to £1,824.34. After the organisation contacted HMRC, late filing penalties and associated interest were waived, reducing the amount she owed to £503 and prompting Elena to email the adviser to describe “the real difference” the support had made to her future.
Application process and oversight
In Case You Missed it:
Applications from voluntary and community sector organisations opened on 8 June and can be submitted via GOV.UK until 3 July. Bidders must demonstrate a clear ability to provide independent, tailored support and to reach customers who are particularly hard to engage.
HMRC says successful organisations will be subject to monitoring throughout the financial year, with payments made in stages and mechanisms in place to stop or withhold funding if grant conditions are not met. Before any money is paid out, HMRC undertakes a “stringent” due diligence process to ensure recipients comply with Cabinet Office standards, and funded bodies must report regularly on outcomes and progress.
Beyond immediate advice roles, HMRC expects funded organisations to provide insight into the experiences of the hardest‑to‑reach customers, helping the department to refine support and build long‑term relationships with taxpayers who may eventually be able to deal directly with HMRC. The department is also encouraging any customers who feel they need extra help with tax or benefits to contact a grant‑funded organisation to discuss their situation.
