Are you aware of HMRC’s use of military-grade surveillance on ordinary citizens?

HMRC’s use of AI and data-mining tools, developed by defence contractor BAE Systems, to monitor taxpayers raises profound ethical concerns. Deploying military-grade surveillance on ordinary citizens and small businesses feels like a betrayal of public trust.

In simple terms, a defence contractor is using taxpayer funds to scrutinise taxpayers. Tax collection is essential, but it must be fair and proportionate, not a tool for intimidation.

HMRC’s “one-to-many” letters, designed to “nudge” taxpayers into reviewing their affairs, exemplify this overreach. These mass communications, often vague and accusatory, resemble phishing scams, triggering anxiety in 83% of UK taxpayers, according to recent reports. Despite 99.9% of taxpayers complying correctly, the letters’ tone implies guilt without evidence. This isn’t governance, it’s coercion.

Labelled “one-to-many” so it sounds less spammy, these letters erode trust with their lack of specificity. Trust is a two-way street, built on fairness, not fear. Rumours suggest HMRC spends $100 million annually on this system, I am wondering, does BAE Systems include itself in the data mining? Or are they bit like Rachael Reeves and forgot…

HMRC has a tough job, they are the front lines, collecting taxes in a system strained by high rates set by policymakers like Rachel Reeves, who seems to know something about something but what I don’t know. Weaponising AI to intimidate compliant taxpayers is not the answer. Instead, HMRC should leverage technology to empower taxpayers, offering clear guidance and support to navigate obligations, not threats that breed resentment. Perhaps if they had asked a company that wasn’t in the defence industry they might have got a better product more suited to aiding tax collection.

Just a point, HMRCs AI system is coming for you, its trickling down.