Authored by Steve Watson via Modernity,
The UK government's tax collectors are pushing for powers that would let HMRC demand the private chatbot conversations ordinary Britons have with AI tools when preparing their returns.
Under proposals in the Budget Bill, the definition of what the taxman can force you to hand over expands from computer "records" to any "relevant thing." That wording opens the door to prompt histories, working papers and full conversations on platforms such as ChatGPT, Microsoft Copilot and Claude if they played any part in calculating figures.
The measure sits inside a broader drive to close a £59 billion tax gap. Failure to respond to a Schedule 36 information notice already carries an initial £300 penalty; those who do not correct inaccuracies can be hit for up to £3,000. Third parties, including the AI companies themselves, can even be ordered to supply the data, the Telegraph reports.
Taxpayers could be asked to hand over their AI chatbot histories to HMRC as the tax authority expands its power to demand digital information.
This is HMRC's latest effort to close the £59bn tax gap ??https://t.co/01D2elIHEi pic.twitter.com/tucbHvefaU— The Telegraph (@Telegraph) November 13, 2026
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