HMRC could root out 'tax cheats' using clever method

As artificial intelligence (AI) gets more and more advanced, so does its ability to help fight crime. While home users use apps such as ChatGPT for leisure purposes and help with tasks, organisations - including the UK government - are striving to put the technology to good use.

Accountant Rachel Harris took to TikTok to warn the government is now using the tech to seek out individuals committing benefit fraud via social media. She advised: "HMRC not only watch your Instagram stories, but now they are using AI to continually scan you across all social media platforms."

Rachel went on to explain that the tax office is looking for something called "lifestyle inconsistencies" in a bid to catch out the cheats. The technology will solely be used in criminal investigations, HMRC has said.

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"This is where your posts don't match the income you have declared," she revealed.

Rachel added that HMRC has openly said it using the tool to search social media profiles for information relating to the purchase of luxury holidays, designer purchases, and new cars or properties - when your the affordability based on your tax return says "otherwise".

She elaborated: "AI spots the red flags and then a human steps in to decide if they're going to investigate you. They already do this to match what you post to data they collect from you."

As well as from tax returns, this includes data from your bank and your employer, Rachel closed.

A spokesperson for HMRC confirmed the operations last month, stating: "Use of AI for social media monitoring is restricted to criminal investigations and subject to legal oversight."

The statement continued: "AI supports our processes but – like all effective use of this new technology – it has robust safeguards in place and does not replace human decision-making.

"Greater use of AI will enable our staff to spend less time on admin and more time helping taxpayers, as well as better target fraud and evasion to bring in more money for public services."

One TikTok user said in response: "Do they not know that people try and present themselves in the wealthiest light on socials?"

Meanwhile, a second person agreed: "That doesn't even make sense, people always portray their life better on social media than it is in reality so you could see someone be poor but act richer on social media and take pics beside expensive looking things they don't even own themselves."

Back in July, HMRC unveiled a major overhaul to the UK tax and customs system, which is set to impact 35million people on PAYE. The fresh digital system boasts over 50 new measures and aims to streamline processes whilst also cutting costs by £50million through reducing postal correspondence.

Specifically, the plan is to utilise AI to aid customers in navigating HMRC services more efficiently and ensure all guidance and content from the authority is current. This will also assist in identifying fraudulent documents during compliance checks.

With all these measures implemented, it is anticipated that by 2030, at least 90% of HMRC's customer interactions will be digital. James Murray MP, Exchequer Secretary to the Treasury, stated: "We are going further and faster to make HMRC fit for the 21st century, including delivering a simpler and easier system for all PAYE workers.

"By 2030, taxpayers can expect a modern and innovative HMRC with cutting-edge AI, industry-leading customer service practices, and a laser focus on delivering taxpayer value for money by ensuring everyone pays their fair share."