HMRC could demand taxpayers' AI chat history in latest crackdown

Conversations used to prepare tax returns could fall within wider powers to request digital information

HMRC could demand taxpayers' AI chat history in latest crackdown

TL;DR

  • HMRC is proposing new powers to potentially request AI chatbot conversations used in tax return preparation.
  • These conversations could include interactions with services like ChatGPT, Copilot, and Claude.
  • The proposals aim to expand HMRC's digital information request powers to better reflect modern tax practices.
  • Privacy campaigners and tax professionals have expressed concerns about the scope and potential intrusiveness of these powers.
  • HMRC maintains that information will only be requested where a lawful basis already exists.
  • Ignoring a formal request from HMRC can result in significant penalties.