HM Revenue and Customs (HMRC) has confirmed it uses AI to scan social media posts as part of criminal investigations into suspected tax and benefits fraud.
That means, if you are posting content that could be viewed as advocating for, admitting to, or describing tax avoidance, you could find yourself at the centre of legal action.
Why is HMRC browsing social media?
HMRC says AI tools have been used for several years to compile and analyse data, and it is keen to assert that social media checks are only being conducted where fraud is suspected in active criminal cases.
The move comes as the department is expanding compliance resources following recruitment of an additional 5,500 compliance staff.
The technology supplements human judgement and operates under legal oversight, and it is intended to free up staff to focus on helping taxpayers and targeting evasion.
Does AI help to catch fraud?
AI can pull together publicly available information from platforms and flag pieces of evidence that merit human review.
In practice, investigators have long read suspects’ social posts to uncover discrepancies.
Automation simply speeds up the collation of this information and helps investigators to prioritise cases. However, the process is not entirely without risk.
Experts caution that fake, hacked or misattributed accounts could generate false leads.
Automation may also miss context that a human reviewer would catch, so robust oversight is essential.
Be mindful of what you post online, as even jokingly describing the steps to avoid tax might put you on HMRC’s radar.
If you have any concerns about failing to declare certain income, or owing tax to HMRC, speak to a professional confidentially rather than posting about it on social media.
This will enable you to take control of the situation and seek to rectify your position, if necessary, via the most appropriate means.
We can support you to ensure that your tax filings are fully compliant, and that you are reporting accurate figures to HMRC.
To speak to us about getting your tax affairs in order, and avoiding unnecessary exposure to penalties and other sanctions, contact us today.
