HM Revenue & Customs

HM Revenue & Customs (HMRC), established in 2005 through the merger of Inland Revenue and HM Customs and Excise, is the UK government's principal tax authority, tasked with collecting taxes to fund public services, administering state support, and overseeing regulatory regimes including tax reliefs for charities. Its mission emphasizes fairness, efficiency, integrity, and impartial enforcement of tax laws, with a distinctive focus on enabling charitable impact through fiscal incentives rather than traditional grantmaking—primarily via the Gift Aid scheme, reliefs on gifts of shares/land/securities, income/gains exemptions, and VAT/business rate reductions, all strictly regulated to prevent abuse and ensure good governance.

HMRC's limited grant funding, via the Voluntary and Community Sector Grant Programme (£1.8 million annually from a £5.5 million three-year budget), targets UK charities delivering tax compliance advice, welfare entitlements support, and digital inclusion for marginalized or excluded taxpayers, such as those struggling with benefits, tax credits, or system navigation. It prioritizes proven national-reach organizations facilitating access to rights and responsibilities.

Eligible applicants are UK-registered charities with medium-to-large scale (grants capped at 50% of annual turnover), demonstrating financial stability and delivery capacity; geographic focus is UK-wide. Unsolicited applications are not accepted—funding is by competitive tender or invitation through announced calls on HMRC/government portals, via online forms or email with detailed proposals, accounts, and trustee details. Typical grants range £30,000–£600,000 yearly; no rolling deadlines (e.g., last closed August 2023 for 2024–2027). Exclusions include core costs, unrestricted/capital/emergency funding; HMRC uniquely blends regulatory oversight with narrow, outcomes-driven grants to bolster tax system equity.