Contractor accountants may be interested to learn that HMRC’s grants programme has increased tax yields and led to more tax repayments.
The idea behind the scheme is to ensure vulnerable people and those that are hard to reach get the correct entitlements and pay the right amount of tax. The programme is directed at co-operatives, small and large mutuals and social enterprises, as well as charities and commercial and voluntary organisations.
37 voluntary organisations, providing tax and benefits advice, got a share of £2 million from the Revenue in the 2010/11 financial year. As a result, an additional £16.8 million of tax was declared; up 68% on the previous year. The programme also enabled people to claim an additional £48.7 million in tax benefits, credits and repayments; a year on year increase of 70%.
Furthermore, the funding enabled 4,000 volunteers to receive training on tax and benefits issues, which should mean an extra 200,000 people will be able to get advice on tax-related matters.
David Gauke, the exchequer secretary to the Treasury, explained that the grant funding is distributed to independent organisations that provide trustworthy advice to low income and vulnerable individuals. He said he was delighted that the Revenue was supporting taxpayers in this way by awarding community and voluntary sector organisations with financial aid.
We hear a lot about how hard it is for taxpayers to get the advice they need and its good to see that HMRC is taking steps to address the problem.
The current financial funding programme will run until 2014/15.
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