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
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.