HMRC to Overhaul Income Tax System Within Five Years

Tom Blomfield, the Monzo founder and former CEO, warned that artificial intelligence could upend tax systems. He said wage-based levies may not be sustainable as machines replace many jobs.

What Blomfield said on the podcast

Blomfield made the remarks on the Rest is Money podcast hosted by Robert Peston. The episode aired on April 13.

He argued governments might shift taxes from human earnings to computing power. He specifically mentioned taxing data centres and other compute resources.

Predictions on AI capability and timing

Blomfield said current AI agents already outperform humans in narrow tasks. He added these tools exceed university professor level in some domains.

He predicted narrow systems would become generalisable by the end of 2026. As a result, he expects significant tax changes within five years.

Impact on professions

He named tax accounting as an area that could require almost no human labour. Other specialised jobs could face similar reductions in staffing.

That, he said, would force a rethink of how public services are funded.

Broader policy questions raised

The podcast episode synopsis on Apple Podcasts raised urgent policy questions. It asked who would pay for public services if many jobs disappear.

Blomfield’s view implies HMRC may need to overhaul the income tax system to adapt. Policymakers could consider new levies on automation and compute.

Context and presentation

Robert Peston conducted the interview without his regular co-host Steph McGovern. The episode was presented with support from Octopus Energy.

Listeners were invited to consider how governments might replace lost tax revenue. The discussion focused on practical and fiscal consequences of rapid automation.