AI is becoming more common in the world of accounting, with some people now using AI to get quick answers about their taxes.

A recent study found that 68 per cent of accounting clients believe AI could replace the need for professional accounting services.

What is the issue with using AI for my taxes?

If you are considering using AI for tax advice, there are some things you may want to consider first.

The first thing is that AI regularly makes errors. Chatbots will generate their answers based on patterns, not legal truths.

Their answers can be completely inaccurate, meaning that listening to advice given by a chatbot can leave you in hot water with HMRC if you are applying tax rules incorrectly from advice they have given you.

Tax advice is also complicated and based on individual circumstances. AI can regularly ‘hallucinate’ tax codes, VAT regulations and allowances, leading users to believe that they are eligible for reliefs that they actually aren’t.

When businesses or individuals share personal financial information with AI, this may then be shared across servers and can be used for training purposes. This means that your financial information can be made available to millions of people.

There also comes an accountability issue. If you submit a filing to HMRC that is incorrect because of advice that AI has given you, you are solely responsible for the consequences.

Who should I get tax advice from?

If this is a question you need the answer to, you should consider where you got your tax advice from before AI became popular.

Before AI, an accountant was the standard port of call for tax advice. That should still be the case now.

An accountant can help you create personalised tax plans based on your individual circumstances that are HMRC-compliant.

While technology can process numbers, it cannot understand your goals, challenges and circumstances in the way an experienced accountant can.

Our team combines technical expertise with a personalised approach, taking the time to get to know you and your business before offering tailored guidance.

Our team of accountants can support you with your tax planning, financial forecasting, audits and allowances.

For accounting support, get in touch with our team.