As the self assessment deadline fast approaches, and with AI growing in use, it’s inevitable that many taxpayers are considering whether AI can offer a shortcut for this year’s submission. So are you tempted to use AI – and should you even try?
It’s clear that AI is creeping into many aspects of our lives. And our finances. A recent survey by TaxFix of over 1,000 UK taxpayers revealed that 59% plan to use AI to assist with their 2024/25 tax return. In contrast 28% don’t have any intention of doing so. Unsurprisingly young taxpayers are the most likely to use AI with 73% of 25-34 year-olds planning to rely on it. However, usage drops among older generations.
When AI can help – and where it can’t
Whilst AI tools can be useful for some aspects, such as understanding filing deadlines, clarifying tax terminology or organising and categorising your expenses, it has limitations especially when it comes to complex tax rules; it can’t reliably understand UK tax law or your personal situation. Other areas where AI can fall short include:
- Deductions and tax allowances and reliefs
- Payments on account
- Complex business income or multiple sources of income
AI can be a very helpful tool, but it doesn’t replace the human aspect of complex tax affairs, or tax return completion. As with many aspects of technology if you are using AI you’ll need to find the right balance when it comes to your tax return to allow it to support you whilst making sure you’re using professional advice to avoid any mistakes.
The bottom line
If you are planning to use AI for your tax return, limit it to simple, preparatory tasks, like organising your documents and checking deadlines. In short use it for the basics only! If you run a business or have a high income or complex affairs you should always work with a qualified accountant; AI can never replace personalised advice or the peace of mind of knowing that your tax return is accurate and compliant.
We combine technology with expert guidance, helping small business owners and taxpayers without risking errors or missed opportunities.
If you are looking for support with your tax return, please contact our friendly team to ensure your self-assessment is correct and properly submitted.