Ryan’s Andrew Burman on the UK’s AI Plan and Its Tax Implications

Andrew Burman, Principal of Tax Technology at Ryan, comments on Sir Keir Starmer’s recently announced plan to position the UK as an AI superpower:

HMRC to adopt AI more aggressively 

“Starmer’s plan for AI in the UK aligns with similar moves made by other governments, so it’s no surprise and a logical step for the UK to adopt AI across departments.

“It’s clear that, from a tax perspective, HMRC is likely to be encouraged to adopt AI more aggressively. This aligns with the broader push for leveraging AI across government departments, which will lead to increased sharing of taxpayer data between HMRC and other government entities. Such data pooling would provide significantly greater insight into taxpayer information, and if the investment levels outlined in Starmer’s plan are realised, it could dramatically enhance processing power, enabling the analysis of larger datasets in real time. 

 
 

“However, we need to be sure there are sufficient safeguards in place when it comes to addressing access to financial and tax data, given historical performance in this area. There is a risk in making government data available to third parties, including firms from the U.S., China, and other countries.  Balancing innovation and protection will be crucial as we navigate this transformative landscape.”

The shift towards real-time reporting

“For tax professionals, this shift accelerates the need to become real-time masters of business data, encompassing both transactional and master/standing data (e.g., customers, suppliers, goods/services, warehouses, plants, etc.). Identifying and addressing issues promptly will become even more critical, driving their transition to value-added business partners. This transformation will require investment in technology capable of monitoring and interrogating data effectively. Training will also be crucial as both in understanding the practical application of AI and in operationally leveraging it—particularly as the pace of AI evolution intensifies under Starmer’s plan. Collaboration with businesses will also take on greater importance as tax professionals help address issues and communicate remediations.”

AI-enabled advisers for the future?

 
 

“The same considerations apply to advisers, accountants, and outsource providers who form a key part of the ecosystem alongside government and taxpayers. AI-enabled advisers will require real-time access to client data to offer proactive, forward-looking advice. Starmer’s emphasis on AI investment may also hasten the shift away from retrospective periodic tax returns in favour of real-time reporting and periodic filings for relief claims. This mirrors trends in other jurisdictions and further emphasises the need for real-time, predictive, and generative AI capabilities to drive compliance and innovation.

“This plan is undoubtedly ambitious, in theory, but its successful implementation will be vital, particularly given the lofty ambitions set by previous governments and their history with realising them. At the same time, the evolution and adoption of AI capabilities worldwide is accelerating at pace and shows the importance of effectively executing these proposals to keep competitive.”

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