Fintech company ANNA Money has reported that its AI-powered tax bot, Tax Terrapin, has successfully answered 30,000 tax-related questions from the public.
Tax Terrapin, the creation of ANNA Money, has been designed to navigate users through complex tax queries. After extensive training using over 100,000 official HMRC tax guides, the AI tool has demonstrated comprehensive knowledge of UK tax regulations. Additionally, Tax Terrapin has passed seven professional accountancy and tax exams, underscoring its capability to assist users with various tax matters.
The AI tool is available for free and provides instant and straightforward answers. It also guides users to relevant sections of the HMRC website. ANNA Money's objective with this tool is to simplify the often-difficult task of interpreting tax regulations for business owners, cutting down on the need for direct contact with HMRC staff.
Tax Terrapin experienced a substantial increase in user queries in April 2024 and at the end of January, coinciding with self-assessment deadlines. More specifically, the tool saw a 130% increase in inquiries during this period compared to January 2024. ANNA Money anticipates similar activity ahead of the new tax year's deadline on 5 April.
Among the 30,000 questions addressed, some of the most unconventional queries included, "Can I claim driving lessons for a cleaner as an expense?", "How to do Sex?", "Can I expense my take-away coffees if I am self-employed?", "How many Diet Cokes can an accountant drink per day?", "If I sell a cow, do I need to charge VAT?", "Is ice cream a variable supply in all circumstances?", and "I own a Limited Company breeding horses. I need to invest in growing the horses for the first few years before they can be sold. Are the horses classified as assets on my accounts?"
On a more serious note, the majority of questions focused on specific areas of tax such as expenses and allowable deductions, VAT, limited company tax, self-assessment, and tax rates, thresholds, and allowances.
The most frequently asked questions included, "What expenses can be included in a self-employed tax return?", "Do I need to register Ltd or be a sole trader?", "Do I need to register for VAT?", "How much Corporation Tax will I pay?", "Is dividend or salary better?", "What expenses are allowable for self-employment?", "What's the tax-free dividend amount this year?", "What is the personal allowance for 2023/24?", "Can the mortgage on a property be deducted as an expense for a limited company?", and "Is the use of a mobile phone by a director an allowable expense for Corporation Tax if the contract is in the company's name but the director uses the phone mainly for private calls?"
