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HMRC voluntary sector grants cause £30m tax liability

HMRC GRANTS led to an additional £30.6m in net tax liability in 2012/13, the department has claimed.

The grants were available to voluntary and community sector (VCS) organisations that help the public with taxes, benefits and tax credits.

HMRC made £2m available to nine VCS bodies. The funds were used to train over 3,500 volunteers, to advise customers on how to meet their obligations and claim entitlements.

Approximately 97,000 people were provided with support. However HMRC claim the VCS bodies have the capacity to support 175,000.

As a result of this HMRC also took up an additional £29.9m worth of claims, in respect of tax credits, benefits and tax repayments.

Exchequer secretary David Gauke said the grants “continue to provide a cost-effective way of ensuring that vulnerable people on low incomes get the help they need with their tax affairs from an independent, trusted source”.

HMRC plan to continue these projects to through to March 2014, and hope to build on the successes of the current scheme.

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