Would You Trust AI With Your Tax Return? Here’s Why I Wouldn’t..

Our Google update today focuses on the rise of AI in the tax world and conversations in the office about what we all use or would use AI to do. We all agreed a cheeky look on ChatGPT to find answers to help our kids with homework wouldn't be a bad thing but one or two of us are firmly on the opposing side when it comes to using AI to help write things that should be personal and authentic...wedding vows for instance!

We've been struck recently by the number of people talking about using AI to prepare their tax returns. Accountancy Daily published a really interesting read on this subject just last week.

And it’s easy to see the appeal: quick answers, no waiting times, and the sense that a clever tool can take away the hassle of gathering figures and filling in forms. Technology has always been part of tax, from spreadsheets to cloud software, so in many ways this feels like the natural next step. But I can’t help feeling uneasy about how many people are starting to rely on AI without questioning the risks.

The truth is, AI doesn’t “understand” tax. It can process data, produce neat summaries, and even draft a return. But it doesn’t carry professional responsibility, it doesn’t understand context, and it doesn’t carry the burden of penalties if things go wrong. Tax rules are full of nuance. A small change in your circumstances can shift the outcome entirely, and I worry that an AI tool won’t always spot what’s relevant. Worse still, it might give you a confident answer that’s completely wrong—and you’d never know until HMRC comes knocking.

As tax professionals, we bring judgement and accountability. We ask the right questions, not just the obvious ones. We’re trained to see the bigger picture, to look beyond the numbers, and to make sure a client is protected and compliant. I think that matters more than ever in a world where AI can do just enough to look convincing but not enough to take responsibility.

I’m not against technology—we use it every day, and I see how it makes our work more efficient. But for me, AI should be an assistant, not a substitute. People deserve the reassurance of knowing their tax position has been reviewed by someone who will stand by the advice and help if there’s a challenge. The rise of AI is a reminder to us all to explain the value of human expertise, because in tax, a wrong answer can cost a lot more than the fee for getting it right.

#TaxFaculty #TaxAdvice #AIandTax #TrustAProfessional #TheTaxFaculty

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

Contact Us

Contact us today on freephone 0800 0016 878 for a free consultation on all tax issues, or fill out the handy form below and we'll get back to you as soon as possible.

Alternatively, you can email us at info@thetaxfaculty.co.uk or complete the form below.

(Please note, non-UK callers may need to call 0207 101 3845 if your line cannot connect to our 0800 number)

Feel free to contact us through WhatsApp - we accept calls and messages.

Simply click the WhatsApp button below: