Who should I get my tax advice from, an accountant or AI?

AI is now a part of everyday life, with people using it for everything from answering questions to helping with work.

It is also becoming more common in the world of accounting, with some people now using AI to get quick answers about their taxes.

A recent study found that 68 per cent of accounting clients believe AI could replace the need for professional accounting services.

While AI can be useful for some things, it should not be relied on when it comes to your tax affairs. Getting something wrong could leave you facing problems with HMRC.

What is the issue with using AI for my taxes?

There are several risks that come with using AI to get tax advice.

The first is that AI can get things wrong. Chatbots create answers based on information and patterns they have been trained on. They do not understand tax law in the same way that an accountant does.

This means an answer can sound right when it is actually wrong. AI may give you incorrect information about tax rates, allowances, VAT rules or tax reliefs.

If you then use this information when dealing with your taxes, you could end up making a costly mistake.

Tax advice is also different for everyone. Your income, business, plans and financial situation can all affect the advice you need.

AI cannot take the time to sit down with you and understand these things in the same way an accountant can.

There are also concerns around sharing private information with AI. If you enter personal or business financial details into an AI tool, you need to think carefully about how that information may be stored or used.

Your financial information is private and should always be treated carefully.

Another issue is who is responsible if something goes wrong. If you use AI advice and make an incorrect tax submission to HMRC, you are still responsible. You cannot blame the chatbot if you receive a penalty or end up with an unexpected tax bill.

Who should I get tax advice from?

When you need help with your taxes, an accountant should still be your first choice.

An accountant can look at your individual circumstances and give you advice that is right for you. They can understand what you are trying to achieve, look at your finances and help you plan ahead while making sure you stay within HMRC rules.

AI can process information quickly, but it cannot replace the knowledge and experience of an accountant.

It also cannot build the same relationship with you or understand your business in the way a professional can.

Our team takes the time to get to know you and your business before providing advice. We can support you with tax planning, financial forecasting, audits and making the most of available allowances.

Don’t rely on AI for your tax advice. Speak to our team today for professional accounting support.