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Personal tax automation: The present and the future

29th May 2024
Brought to you by
Wolters Kluwer logo

Wolters Kluwer provides software to tax and accounting professionals.

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Have you found this content useful? Use the button above to save it to your profile.

Personal tax season is a stressful time for accountants, as you’re managing a tight deadline and multiple clients. The tedious nature of paperwork and the pressure to remain compliantor risk costly errorscontribute to the stress.  

It doesn’t need to be this way; with advancements in technology, particularly automation, filing personal tax returns for your clients is getting easier. 

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In this article we take a look at how tax returns can be automated, the benefits of automating tax returns, and the future of automation and personal tax.  

How does automation work with personal tax returns? 

Automation in tax filing involves using software to handle tasks that traditionally require human input.  

These tasks include data entry, calculations, compliance checks, and even the submission of tax forms. With the rise of artificial intelligence and machine learning, tax software can now analyse vast amounts of data, learn from it, and improve its accuracy over time. This means that many aspects of tax preparation, previously requiring a professional's expertise, can now be managed by intelligent software.  

On top of this, many software solutions offer integrations with HMRC, customise workflow templates, and point out any errors you might have made in your return—ensuring a quicker and smoother process.  

The benefits of automating personal tax returns  

  • Complete and file tax returns quickly and accuratelyAutomation tools can allow you to cut time spent on tax returns from 80% down to 20%. On top of this, software can highlight any problems or inconsistencies and allow you to amend errors before submitting.  
  • Streamline tax processes – Improve efficiency, reduce errors, and save costs through automation. 
  • Standardise processes across the tax department – Customisable workflow templates can guide your staff through the tasks they need or perform so everyone is following the same procedure with ease.  
  • Rapid access and implementation – Automation software tools offer improved process efficiency, as systems can run 24/7 in the background. 
  • Ensure consistent deliveryAutomate the entire process of; collating documents, identifying and extracting tax related information, transporting extracted data into CCH PT, storing the documents into a document management system, chasing clients, and completing returns. 
  • Grow and scale your practice through automation – The benefits of digital bots in the tax workforce allows staff to focus on higher value tasks and grow their practice. 
  • Cost savings – Lower cost entry point for smaller practices and corporates. 

The future of automation and tax returns 

With current software capabilities evolving so rapidly, there are many advancements on the horizon. Some of our predictions include: 

  • Deeper integration with financial systems: Future tax automation will likely involve deeper integration with personal and business financial systems. This means that software can automatically import financial data from bank accounts, investment portfolios, and payroll systems, reducing the need for manual input. 
  • AI and predictive analytics: AI and predictive analytics will play a significant role in tax automation. These technologies can analyse spending patterns, investment behaviours, and other financial activities to provide personalised tax advice. However, as with any generative AI capability, compliance and regulation will be crucial in the industry.  
  • Global tax compliance: For global entrepreneurs, managing tax compliance across multiple jurisdictions is challenging. Automated tax solutions will increasingly offer global compliance features, helping users navigate different tax systems seamlessly.  


Interested in learning more about how you can automate your personal tax filing process today? 

Learn more about our personal tax automation tool.