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HMRC and Automation Technology

As we venture further in to this digital world HMRC are at the government forefront of introducing automation technology with both ‘unattended’ solutions which need no human support at all and ‘attended’ solutions which require some human intervention.

HM Revenue and customs now have a range automation technology software that they can program to take on the repetitive mundane tasks of customer advisers, therefore enabling them to be able to focus on providing a more efficient service. Chances are if you’ve called HMRC in the last couple of years one of their automated systems would have directed your call to the appropriate adviser while Employer registration is handled start to finish by an automated service.

HMRC use AI tools to investigate taxpayers

What is Robotic Process Automation?

Robotic Process Automation or RPA for short uses special software to enable routine clerical work for example data entry to be automated. You could say a software ‘robot’ reproduces the actions of a person interacting with the user interface of a computer system. Read more here

Likewise HMRC have begun to use sophisticated artificial intelligence tools to investigate taxpayers. These work alongside HMRC’s multi-million pound database system. The system named Connect enables HMRC to cross-reference information supplied from the tax returns with individuals and businesses finances stored elsewhere.

How does Artificial Intelligence work?

Like RPA Artificial Intelligence uses machines to mimic human intelligence. The computer has to learn how to respond to certain actions, it does this by using algorithms and historic date to create a propensity model. Therefore saving time. Read more on Artificial Intelligence here

How does the Connect database work?

Connect can access data from a wide range of apps and platforms. It then compares self-assessment forms, bank accounts, property transactions and credit card statements in one go. The database finally can look for connections and anomalies in the data that could indicate tax evasion.

If you have any questions on this or another accountancy topic then contact AJR & Co Ltd to arrange a free 30 minute consultation