AI is everywhere! It’s impacting our daily lives at work and at home, sometimes when we least expect it. Are you tempted to use AI to complete your tax return? It’s quick and cost effective, so why not?
A recent survey of 1,000+ UK taxpayers found 59% of participants plan to use AI to help with their Self Assessment tax return. However 81% still want access to qualified professionals. Most people understand that human overview is important.
While AI sounds attractive, it’s not always reliable and tax return mistakes can be costly. There is, however, a place for using AI …
How can AI help you with your tax return?
AI can be useful for:
- Explaining tax jargon in plain English.
- Reminding you of deadlines.
- Helping you get organised with checklists.
If your tax and/or accounts requirements are very straightforward, these details might feel helpful. However, that tends to be the limit of the advantage of AI for tax returns.
Where AI falls short
AI doesn’t know the nuances of your personal situation. Common pitfalls include:
- Misapplying reliefs or allowances.
- Overlooking any payments on account.
- Failing to spot when expenses are better claimed another way.
In short, AI is a generalist. It can’t give you personalised, professional judgment.
Remember – AI hallucinates. Sometimes, it gets its answers wrong. You need to check the legislation (such as date and location) it refers to when calculating your tax.
The advantages of working with an accountant
When you work with an accountant, you’re getting:
- Tailored advice – we consider your full financial picture, not just your numbers.
- Compliance – we keep up with ever-changing HMRC rules to protect you from penalties.
- Risk reduction – if HMRC queries your return, we’re in your corner, liaising with HMRC on your behalf. This saves you a lot of time and stress.
- Peace of mind – you know that your tax return is accurate and compliant.
A big bonus of working with an accountant? Often, we can save you money. Importantly, you know you won’t pay any more tax than you need to.
Using AI wisely
‘I’m not against using AI, but in the right way,’ says Emily Bridges of re:accounts Chartered Accountants in Stevenage. ‘Think of it as a support tool — for checklists or definitions — but not as your main adviser. Always verify important points with HMRC guidance or, better yet, with a qualified accountant.
‘AI has a role to play. But for most people, relying on it is a risk,’ adds Emily. ‘A good accountant provides expertise, professional knowledge and reassurance that your tax return is done properly. Ultimately, you save money, stress and time.’
Would you prefer a tax expert or a robot to complete your tax return?
If you’d like your tax calculation to be truly personalised, talk to the friendly experts at re:accounts. We’ll cut through the accountancy-speak and make sure you don’t pay a penny more tax than you need to.
