HMRC has revealed that grants of £2m to voluntary and community organisations to help people with taxes, benefits and tax credits led to £26m in additional tax being declared to HMRC last year. This was an increase of 55% on the previous year.

Some 4,500 volunteers were trained by these organisations to answer people's questions on tax credits, benefits and tax issues. They will ensure that an additional 225,000 people per year get help and advice on HMRC-related issues.

In addition to voluntary and community organisations and charities, HMRC's funding programme is directed at social enterprises, co-operatives and large and small mutuals.

HMRC has operated a multi-year funding commitment since 2007/08. The current funding programme runs over the four years 2011/12 to 2014/15, and £2m of grant funding is made available to the voluntary and community sector each year. The funding for the current four-year period has now been allocated. The programme will focus on funding voluntary and community sector organisations that provide advice and support for those HMRC customers who need help meeting their obligations and claiming their entitlements.

HMRC has distributed £2m across nine organisations in the VCS sector to undertake 17 projects aimed at providing support to vulnerable customers.