Check AI output before you rely on it, taxpayer warned.

It was just one strand in a bad day for taxpayer, Mr Gunnarsson. HMRC had appealed Mr Gunnarsson’s case to the Upper Tribunal on the basis that he had claimed the wrong type of pandemic support.

Sifting pandemic support claims for errors and fraud remains a top government priority, and it is noteworthy that HMRC clearly wasn’t prepared to give up on this case, which had been partly decided in the taxpayer’s favour at the First-tier Tribunal. The Upper Tribunal was tasked with deciding if Mr Gunnarsson had been eligible for the Self-Employment Income Support Scheme, and judged that he had not.

Unfortunate timing meant that a previous self-employment had ceased, and he was then trading as the sole director of a limited company, thus failing to qualify for the support. In a separate point, the Tribunal noted that the paperwork Mr Gunnarsson had prepared for the case had relied on output from AI software, and when HMRC checked it over, the Tribunal decisions quoted by the AI didn’t exist.

This time, the Tribunal took a lenient view of what had happened, and did not hold Mr Gunnarsson to be ‘highly culpable’. But it did take the opportunity to issue a reminder that anyone going to Tribunal is responsible for the accuracy of information provided. Presenting unreliable evidence is a serious matter, to which sanctions can apply.

The taxpayer in this case was acting for himself, without professional advice and support. As your advisers, we have the expertise that makes a difference when it comes to bright-line judgment calls like the one that Mr Gunnarsson faced. Whatever your question, please don’t hesitate to contact us. We are here to help.