Artificial Intelligence – Friend or Foe? – A&C Chartered Accountants

Artificial Intelligence (AI) is transforming the way we work and live. But a recent Upper Tribunal case, HMRC v Marc Gunnarsson, has highlighted the risks of relying on AI without proper checks. What happened in the case? The taxpayer, a company director, had incorrectly claimed Self-Employment Income Support Scheme (SEISS) grants and was required to repay them. In preparing for his hearing, he had no professional representation and instead used AI software to draft his skeleton argument. The problem? His submission referred to three First Tier Tribunal decisions which did not exist. They had been generated, or “hallucinated”, by the AI system. The risks of using AI unchecked This case is a reminder that while AI can be useful, it can also produce inaccurate or entirely fictitious information. In legal or tax disputes, relying on such material can seriously undermine your position. Why professional advice matters AI can be a helpful tool for research or efficiency, but it should never replace expert advice. When it comes to tax, the safest approach is to work with trained and qualified professionals who can give you accurate, reliable guidance that stands up to HMRC scrutiny. At A&C Chartered Accountants, we're not just accountants; we're your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

What happened in the case?

The risks of using AI unchecked

Why professional advice matters

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