4 reasons to avoid using AI for tax advice

We’re used to the idea that artificial intelligence (AI) can help us run a streamlined, efficient small business. AI can automate many low-level processes, help with customer service and give us useful insights into our business data.

But there’s one key area where relying on AI is a no-no: tax advice.

Research published by Taxfix in September 2025 found that more than half (59%) of the Self Assessment taxpayers it surveyed said they would use AI to help with their tax return in the run-up to HMRC’s 31 January 2026 deadline.

Let’s look at why you should be wary of using general AI chatbots to answer complex tax questions, and why your accountant or tax adviser is the person to talk to.

Update, October 2026: the 31 January 2026 deadline mentioned in this article has passed. Online tax returns for the 2025/26 tax year are due by 31 January 2027 (GOV.UK: Self Assessment tax returns: deadlines). Since 6 April 2026, some sole traders and landlords also need to use Making Tax Digital for Income Tax.

1. Tax is a complex and nuanced area

Understanding UK tax law and how it applies to your situation is complicated. Giving the right answer depends on a number of details about your tax position that are unlikely to be in the question you type into a chatbot.

2. Tax rules are specific to your country and your position

The tax rules that apply to you as a UK taxpayer or UK business are set by legislation passed by Parliament and administered by HM Revenue & Customs (HMRC). Some rules also differ within the UK. For example, if you live in Scotland you pay Scottish Income Tax on most of your income, at different rates and bands.

General AI tools learn from material written for many countries, so unless you’re specific about being a UK taxpayer, you may get answers based on another country’s rules.

3. AI can give wrong answers that sound right

Generative AI tools sometimes give the answer they think you want, rather than one that is factually correct. These ‘hallucinations’ can sound convincing and plausible, so you may not realise the information is wrong until your tax adviser points out the error, or HMRC does.

4. Tax professionals give you informed, human advice

Tax advice isn’t just about knowing the current rules. An experienced human adviser can give you answers tied to your own tax position and financial situation, and can ask the questions you didn’t think to ask. In short, a human tax adviser gives you tailored advice, whereas a general AI tool can only give general answers.

You can’t negotiate the tax rules themselves. But a good tax adviser will help you plan your tax efficiently, taking into account the reliefs and allowances available to you and making sure you claim the expenses you’re entitled to.

Accountants and tax professionals know AI can be a useful operational tool for your business. But, as an industry, we also know the risks of relying on AI-generated tax advice.

Sources

Our main sources are HMRC and GOV.UK:

• Self Assessment tax returns: deadlines
• Income Tax in Scotland

Talk to us about your tax return

If you’ve got a tax question, or want help with your Self Assessment tax return well before the 31 January deadline for online returns, come and talk to our team. We’ll be glad to help. Call us on 020 7164 0225, send us a WhatsApp message or email your tax question to hello@ibandco.co.uk.

You can also read about our personal tax planning service and our Self Assessment support.

First published 14 October 2025. Tax content checked on 9 October 2026. This article reflects the rules at the date it was first published. Where something has changed since, we’ve added an update note. Rules and rates change, so please check with us before acting.