Trust in AI is climbing, and fast. In fact, it looks like this year could be one of the UK’s first ever “AI tax return seasons”. Scary, right?
According to new research from Taxfix, more than half of Brits (59%) say they’ll be using AI to help them complete their self-assessment tax return ahead of HMRC’s 31st January deadline.
With millions of people across the UK needing to file, and the price of an accountant ranging from £300 – £500 per return, it’s no surprise that so many are turning to AI.
The Rise Of AI Tax Season
So why are people turning to AI? Well, according to the respondents, it’s because it’s faster (39%), more convenient (36%), and cheaper (33%) than working with an accountant.
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 that are more complicated.
Whilst many accountants agree that AI helps self-assessors with understanding the tax return process (35%), they also warn that AI can lead to expensive mistakes. In fact, 73% have warned self-assessors to be careful when it comes to using AI, especially in complicated situations.
As one accountant, Daniel Roper, put it: “Using AI as a starting point can be very helpful, but you should always check the source of its information and, if in doubt, seek professional advice.”
A Generational Divide
It’s not just AI that’s changing how people file their returns. Social media is also playing a role.
According to the research, almost half of self-assessors (43%) now look up tips on TikTok or YouTube, with influencers like James Shack and the #TaxTok community playing a role in educating people on tax filing.
Unsurprisingly, this trend is strongest among younger taxpayers. More than half of 18–24 year olds prefer TikTok and YouTube for tax advice, compared to just over a third who said HMRC was their go-to. On the flip side, older self-assessors (55–64) overwhelmingly trust HMRC over social media.
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Striking The Right Balance
AI is helping people in all areas of their lives, so it’s no surprise that so many are using it to make tax season less daunting. Four in five people (79%) say it lowers their stress levels and two-thirds (66%) would love to see more personalised AI tax assistants. But 81% still want the reassurance of a qualified accountant to make sure they get it right.
As Martin Ott, CEO of Taxfix, explains: “AI is helping to close the education gap around taxes, making the process more accessible. But there’s still no substitute for human expertise. That’s why at Taxfix we combine AI-powered insights with access to independent tax advisors, the best of both worlds.”
Need Some Tools To Help With Your Tax Return? Why Not Try…
If you are looking for tools that are slightly more specialised than ChatGPT, why not try one of the below?
FreeAgent
FreeAgent is an accounting software for small businesses and sole traders, helping them manage their finances and file on time.
As part of their programme, they have a self-assessment return, which is designed and filed based on the person’s finances. However, it is worth noting that FreeAgent is not authorised by HMRC to provide accounting or tax advice, so they don’t take responsibility if the filing is incorrect.
Taxfix
Operating in Germany, The UK, Spain and Italy, TaxFix allows people to file quick and paperless taxes from anywhere.
With tax returns from £134 all on, people are able to manage everything online, sorted by an accredited accountant and filed within 48 hours.
Pie
Pie is the UK’s first self-assessment app, founded to help make taxes simple for the masses.
Through the app, users can manage their taxes for free, only paying for expert advice if they need it. That way, Pie is an easy, accessible and affordable option for anyone looking to file their taxes.
Taxd
Taxd positions itself as ‘your online personal tax accountant’ – allowing people to process their Self Assessment and submit to HMRC more easily.
With human customer support throughout and supporting SA100 and SA800, users are able to sign up and file their tax return within minutes.
