HMRC has announced a 10-year, £175m deal with British tech firm Quantexa to provide AI-powered technology aimed at improving its performance and cracking down on fraud and tax errors. This comes after Freedom of Information data revealed that complaints against HMRC exceeded 93,000 during the 2024/25 financial year.
Details of the Agreement
The massive agreement will see Quantexa's AI-powered systems integrated into HMRC operations. Quantexa says its systems will combine data collected by HMRC with external sources to help the tax office identify incidents of fraud and fix unintentional errors more quickly. The deal is part of a broader effort to modernise HMRC's core data infrastructure.
Quantexa's Role
Vishal Marria, Founder and CEO of Quantexa, stated: "Governments around the world are facing a common challenge: how to turn complex, fragmented data into confident, timely decisions. By creating context from data and embedding trusted, governed AI, we are helping HMRC improve how public sector organizations make confident, informed decisions. This is a blueprint for how the UK government deploys AI at scale."
Quantexa works with public sector organisations globally on fraud, risk, compliance, and data modernisation initiatives. The company added: "This programme will support the modernisation of HMRC's core data infrastructure, giving the UK's tax authority a clearer, connected view of its data to improve performance, help identify tax at risk, and strengthen control. It also lays the groundwork for advanced AI capabilities and supports wider transformation efforts; from closing the tax gap to delivering faster, more seamless customer service."
Background on Complaints
Freedom of Information data obtained by the Contentious Tax Group revealed that complaints against HMRC exceeded 93,000 during the 2024/25 financial year. This surge in complaints has prompted the government to take action, championing the move from the Labour Party government.
Future Implications
Quantexa added: "Public sector organisations are accelerating digital transformation while needing to maintain sovereignty, auditability and control. Quantexa's Decision Intelligence Platform addresses this by unifying fragmented data into a trusted, governed foundation for advanced analytics and the safe deployment of AI at scale to enable augmented and automated decision-making. As governments grapple with data sovereignty, AI governance, explainability, and ageing infrastructure, HMRC is setting a new benchmark for what unified data and trusted AI can deliver."
