Can an AI do my tax return in the UK?

Partly. AI can sort transactions and draft figures, but only compatible software or HMRC's online service can send a return, and you stay responsible for it. HMRC's guidance of 28 January 2026 says AI should support, not replace, human judgement.

Plenty of sole traders and landlords now ask a chatbot about their tax. That is a different thing from AI doing the return. This page sets out what AI can and cannot do, what HMRC expects of AI tax software, who carries the risk, and how to check a provider. It follows GOV.UK as checked on 16 October 2026.

What AI can and cannot do today

The useful part is real. Sorting hundreds of bank transactions, spotting a missing invoice or drafting a quarterly total is exactly the dull work software does well. The risky part is judgement: whether a cost is allowable, how a jointly owned let is split, or how CIS deductions are treated.

What HMRC expects from AI tax software

HMRC published guidelines for software developers on 28 January 2026. It expects AI-enhanced tax software to:

• say clearly that it uses AI, and explain its limits, including "hallucinations", where AI produces information that sounds right but is made up;
• draw on reliable sources such as HMRC publications, legislation and case law, and update them as the rules change;
• support, not replace, human judgement, and prompt you to check the results and correct errors;
• flag nuanced rules or complex cases, and say when you need to look further or get help from a professional;
• remind you that it is your responsibility to make sure your return is accurate;
• follow UK GDPR, with privacy built in.

The same guidance says HMRC does not endorse or approve any software developer or product. For Making Tax Digital for Income Tax (MTD), GOV.UK says every product on its software finder has been through HMRC's recognition process, and that HMRC does not recommend any product.

Who is responsible if the AI gets it wrong

You are. HMRC's factsheet on penalties for inaccuracies says that if you ask someone else, such as an adviser, to do something for you, you must do everything you reasonably can to prevent inaccuracies. A tool is no different.

Reasonable care includes keeping proper records and checking anything you are unsure about. In practice that means reading the figures before they are sent, not accepting them blind.

What this means for you

Using AI is allowed, and it can save hours. What changes nothing is the rule that the return is yours. Rules also move: the MTD threshold falls from £50,000 to £30,000 on 6 April 2027 and to £20,000 on 6 April 2028, and a chatbot trained on older material may not know that.

If someone else runs the AI for you, check them as you would any firm.

Steps to use AI safely for your tax

1. Use the free MTD check to see whether, and when, MTD applies to you.
2. Use a general chatbot for explanations only, and check each answer against GOV.UK.
3. Never paste your HMRC sign-in details, National Insurance number or full bank statements into a tool whose privacy terms you have not read.
4. For filing, choose software from GOV.UK's software finder, or a firm that uses it.
5. If a firm does it for you, run through the checks in the table above.
6. Read every figure before it is sent, and keep your records for at least 5 years after the 31 January deadline.

Our own service uses automated software, including AI, with a named director accountable. You confirm every figure before it's sent. Our tax plans start once our HMRC registrations are complete. Until then you can join the waitlist, and no payment is taken. See the trades section or the landlord section.