HMRC payout of £2m to charities results in an extra £26m tax being paid.
HM Revenue and Customs last year paid £2 million in grants to voluntary and community organisations that help people with tax affairs, benefits and tax credits. This investment by HMRC proved more successful than ever last year as the support provided by the organisations the grants went to is thought to have led to an extra £26 million in tax being declared and paid. This is an increase of 55 per cent on the amount of tax that was declared because of this scheme in the previous year.
The funding is used by organisations to train around 4,500 volunteers to answer people’s questions on tax credits, benefits and tax issues. As a result, an additional 225,000 people each year will get help and advice on HMRC-related issues who would fail to access it otherwise.
HMRC’s funding is directed at social enterprises, co-operatives and large and small mutuals, as well as voluntary and community organisations. HMRC have operated a multi-year funding commitment since 2007-08. Currently seventeen projects by nine different organisations are being supported through HMRC grants.