HMRC voluntary sector funding is working, so let’s increase it! - LITRG Press Release

Published on 19 December 2013

The LITRG are calling on HM Revenue and Customs (HMRC) to increase their funding for voluntary and community sector organisations that help people with taxes, benefits and tax credits, after figures published yesterday showed how effectively the money has been used.

HMRC announced that a modest investment of £2 million across nine voluntary and community sector (VCS) organisations to provide support to HMRC ‘customers’ who need extra help with understanding their entitlements and tax responsibilities, has led to additional tax of £30.6 million being declared and additional take-up of £29.9 million of credits and benefits.

Part of the grant was paid to LITRG to generate new websites, printed materials, training programmes for advisers and helplines designed to assist low-income migrants, students and disabled people in understanding UK tax and related welfare matters. This supplements LITRG’s core funding which is supplied by the Chartered Institute of Taxation.

Anthony Thomas, LITRG Chairman, commented:

“As the Minister has said, this is a cost effective way of reaching those who might otherwise struggle to meet their tax obligations and claim their entitlements. HMRC’s analysis shows that the money has been used very effectively to help people fully comply with their tax obligations and to ensure they pay the right amount of tax.

“These impressive results on a comparatively small investment in the VCS should encourage Government to pursue this sensible course on a larger scale.

“Young or old, rich or poor, most people whose tax affairs are more complex than one simple PAYE source of income will need to seek guidance at some point in their life to ensure they comply with complex tax rules. Organisations such as LITRG, Tax Help and Tax Aid work to ensure that that guidance is available to those who cannot afford to pay for it. With additional resources from HMRC we could do even more.”

The results of the HMRC Grant Funding Programme 2012-13 for the Voluntary and Community Sector can be seen here.

A list of the projects being supported and the organisations delivering them is available here.

(19-12-2013)

Contact: Robin Williamson (please use form at http://www.litrg.org.uk/ContactUs)