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HMRC to use AI from Quantexa to spot fraud and tax return errors
HMRC announced a 10-year, £175m deal with Quantexa to provide AI-powered technology to identify fraud and correct tax return errors. The system will combine HMRC data with external sources, assist customer service, and help uncover hidden networks, with human oversight and data security emphasized. The move aligns with digital sovereignty goals amid rising public dissatisfaction with HMRC performance.
Why It Matters
The deal signals a push to modernize government services using AI while prioritizing data security and transparency. It also reflects concerns about public service performance and the UK’s reliance on domestic tech in government operations.
Timeline
2 Events
HMRC announces 10-year, £175m AI deal with Quantexa to combat fraud and errors
May 14, 2026
HM Revenue and Customs announced a 10-year, £175m contract with the British tech firm Quantexa to provide AI-powered technology to combine HMRC data with external sources to identify fraud, fix unintentional errors more quickly, assist customer service staff, and identify hidden networks of companies and individuals. Quantexa emphasised that automated decisions will be checked by people, that such decisions must be transparent and auditable, and that HMRC data would remain within the HMRC environment with staff working separately from Quantexa. The company also noted it would help track legitimate payments made to HMRC under the wrong reference numbers.
FOI findings on HMRC complaints in 2024-2025
2025
A Freedom of Information request by Contentious Tax Group found there were more than 93,000 complaints about HMRC in 2024-2025, an increase from about 70,000 in 2020-21, with poor response times cited as a major gripe.