Trust in AI is on the rise, as more than half (59%) of Brits admit that they’ll use AI to help with their tax return in the run-up to HMRC’s January 31 deadline. This marks the start of the UK’s first ever AI-led tax return season, according to new research from Taxfix, one of Europe’s leading financial platforms for tax filing.
With millions of Brits required to complete self-assessment returns and average accountant fees ranging from £300-£500 for basic returns, the appeal of AI assistance is clear. HMRC’s automatic £100 penalty fine for late filing adds further pressure to the annual rush, driving many to seek faster, cheaper alternatives to professional help.
The research reveals that self-assessment taxpayers are turning to AI tools for faster (39%), more convenient (36%) and cheaper (33%) alternatives to bringing in an accountant for the return season.
However, according to accountants in the UK, it’s important to remember that not all AI tools are trained to understand the nuances of British tax law and cases involving complex deductions and reliefs.
Whilst accountants agree AI helps self-assessors with their understanding of the tax return process (35%), they also warn that AI can lead to costly mistakes and urge self-assessors to be careful when it comes to using AI due to incomplete advice (73%), inability to handle nuance (62%) and a lack of UK-specific knowledge (52%) – such as not claiming back eligible tax, for even basic tax calculations.
