The UK plans to use AI to help people do their taxes

The government is pushing to modernise the HMRC to help close the tax gap and make it an efficient digital system that relies on innovative technologies like AI.

Speaking at the annual HMRC Conference on Wednesday (17 September), Exchequer Secretary to the Treasury Daniel Tomlinson said that HMRC is making strong progress to future-proof, modernise and secure its IT estate, using fewer, more efficient and cost-effective platforms to build and adapt IT products more quickly.

“All of this means that, by 2030, HMRC will be an agile department, with modern IT infrastructure, robust data capabilities, and more innovative technology including AI – with the right guardrails and oversight in place,” he said.

“Just over six months from now, in April 2026, sole traders and landlords with income over £50,000 will be required to use Making Tax Digital for their Income Tax obligations. This is a key part of our plan to modernise the tax system, and we’re working with you, our stakeholders, to ensure businesses are ready.

“We now have thousands of volunteers signed up, a growing range of software, and we’ll be launching a marketing campaign next week, to ensure businesses are ready. Please help us by sharing our messages with your customers.”

Tomlinson said the HMRC would also enhance digital services at the border such as the Customs Declaration Service, and launching a new AI service for the Online Trade Tariff – helping importers and exporters including SMEs to trade internationally and grow, with bespoke support to help them to easily understand their obligations.

This includes modernising the UK’s excise system, removing outdated policies and manual processes and replacing them with smarter, more efficient systems, he said.

“This transformation is about more than just technology—it’s about collaboration. These improvements show how we’re working closely with industry to deliver change that is ambitious, practical, and sustainable.

“The Transformation Roadmap sets out our ambitious vision for the future of the tax and customs system – ambitions commensurate with the importance of the department.”

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