(In the U.K) Tribunal Orders HMRC to Reveal AI Use in R&D Tax Claims

A tribunal has ordered HMRC to disclose whether it uses artificial intelligence in handling research and development (R&D) tax claims, following an appeal by software entrepreneur Thomas Elsbury.

See also: (In the U.K) Prince Andrew Mock Trial Renews Scrutiny Amid Epstein Links and Upcoming Giuffre Memoir

The ruling overturned the Information Commissioner’s earlier support of HMRC’s refusal to confirm or deny its use of generative AI, raising broader concerns about transparency, confidentiality, and public trust.

The tribunal criticised HMRC for shifting its stance on disclosure and warned that secrecy could erode taxpayer confidence in the R&D relief scheme.

Experts have highlighted that openness is critical as AI becomes increasingly embedded in decision-making, especially where sensitive intellectual property is at stake.

HMRC now has 35 days to comply with the order—either by disclosing the information or issuing a valid refusal—underscoring the growing tension between technological innovation and accountability in public administration.

See also: (In the U.K) Nigel Farage Clashes with U.S. Lawmakers Over UK Online Safety Act and Free Speech Fears