- New tool, which will be integrated into IRIS Elements and IRIS Accounting Suite for all customers, will reduce time to file a tax return from four hours to as little as 90 minutes
- Across the 13,000 strong base of IRIS Elements and IRIS Accounting Suite users, the AI tool could release up to 6 million hours back into the profession once all phases are deployed
- Move marks the first phase of a multi-million-pound investment to strengthen IRIS' flagship software to deliver productivity gains
LONDON, Dec. 9, 2025 /PRNewswire/ -- IRIS Software Group (IRIS), a leading global provider of accounting, HR, payroll, and education software, has launched the first phase of its AI-powered tax anomaly detection tool, marking a strategic shift from compliance software provider to AI-powered tax preparation partner. The launch represents the first phase of a multi-million-pound investment to position IRIS as an AI-first, AI-everywhere company.
Building one of the Industry's Most Intelligent Tax Platforms
Integrated directly into IRIS Elements and IRIS Accountancy Suite at no additional cost, the tool gives over 13,000 UK accounting practices immediate access to AI-powered anomaly detection that identifies errors before submission to HMRC. Built on GPT4.1 in the agent and fully integrated into Microsoft Foundry, it addresses the challenge of comparing current-year returns against historical data by flagging discrepancies including unexpected income fluctuations, missing dividend or interest income, and manual entry errors. These are all issues that plague practices across the sector, risking not only costly fines but long-term reputational damage.
As part of IRIS's long-term vision to create the UK's most intelligent personal tax automation platform, this phase one launch will be followed by two additional phases over the next 12 months. When fully deployed, the complete platform aims to cut tax return preparation time by up to 62.5% and reduce errors by 95%.
"This is one of the industry's first solutions built specifically for UK tax compliance that actually understands HMRC rules and accounting workflows," said Jonathan Priestley, General Manager, Global Accountancy Solutions and Transformation at IRIS Software Group. "Firms that thrive are those who embrace technology as a trusted partner, and with this tool we're giving practices of all sizes the power to unlock their growth potential with AI they can trust."
Mid-sized firms (9-75 employees) using IRIS Accountancy Suite will see their operations transform into what IRIS calls an "AI-powered tax machine," with projected savings of up to £44,930 annually once all three phases are implemented*. Smaller firms using cloud-native IRIS Elements will gain the same enterprise AI capabilities in an all-in-one platform, eliminating the need for multiple software solutions and enabling growth without added complexity or headcount.
Once fully deployed, the AI tool will release approximately six million hours back into the profession across IRIS' customer base, which files more than two million personal tax returns annually. Mid-sized firms are expected to save an average of 1,250 hours per year, with smaller firms predicted to save a minimum of 250 hours per year - releasing significant time savings back into the profession to be redirected to advisory services, client relationships, and new business development.
Phased Rollout Ahead of Busy Season
The phase one tool, which has been incorporated in the platforms since mid-November, uses AI to detect anomalies early to prevent unnecessary errors and enabling professionals to quickly resolve issues - increasing profitability and empowering firms to deliver service excellence for their clients.
Over the next 12 months, two additional phases will be rolled out. Phase two will add intelligent validation against HMRC rules and automated document extraction from P60s, payslips and other source documents. Phase three will enable full automation including post-submission monitoring and AI-generated client reporting.
The timing ahead of the sector's traditional 'busy season' - when millions of tax returns must be filed before HMRC deadlines - provides immediate productivity gains as practices face peak demand.
Meeting Market Demand as Younger Accountants Drive AI Adoption
The launch responds to surging demand for AI tools across the profession. Recent research shows 91% of accountants currently use AI for researching tax matters and drafting documents, with two-thirds planning adoption within three years. Accountants aged 18-24 show a 29% higher adoption rate, signalling a generational shift toward AI-enabled practice management. a generational shift toward AI-enabled practice management.
Investment Positions IRIS as AI-first, AI-everywhere Company
Today's announcement follows last year's acquisition of Dext, the market-leading accounting and bookmarking software that automates routine tasks with AI. This strategic acquisition forms a key element of a wider investment in intelligent automation, enhancing IRIS' capabilities to streamline accounting processes and deliver even greater value to customers.
IRIS is now moving into the next phase of its AI-first strategy, with a multi-million-pound strategic investment to embed AI across its entire software portfolio. While accounting is the first division to receive AI-powered capabilities, the investment will extend across IRIS's flagship solutions in payroll, HR, and education, transforming how more than 100,000 organizations globally operate.
"This isn't about adding AI features for the sake of it - we're fundamentally reimagining how our customers work with an AI-first, AI-everywhere approach," Said Jason Dies, CEO at IRIS Software Group, "We're starting with one of our core segments, the accounting profession, but these AI capabilities will extend across our entire software portfolio, payroll, HR and education, transforming the critical work each of our customers do every day."
The collaboration uses Microsoft's advanced and secure AI infrastructure and large language models, positioning IRIS to deliver enterprise-grade AI capabilities at scale across all markets it serves.
Chris Tuite, Director, Software Company Partnerships UK & Ireland, Microsoft said: "By building on Microsoft's secure AI infrastructure, IRIS is helping UK accounting practices work more efficiently and accurately during their most demanding season by making AI insights available in the flow of work. This practical AI innovation has the potential to turn into measurable business value for its customers."
*Based on an employee working 9am-5pm at an averaged-sized practice that is filing 500 returns
About IRIS Software Group
Founded in 1978, IRIS Software Group is a global provider of mission-critical, cloud-hosted software solutions and services to more than 100,000 customers across 135 countries. IRIS is a trusted partner to businesses, finance, HR and payroll teams, educational organisations, and accountancy firms of all sizes, providing innovative operational solutions that streamline complex processes, maintain compliance, and unlock growth. Through simplifying, automating and providing insights on everyday mission-critical tasks for organisations of all shapes and sizes, IRIS ensures customers can look forward with certainty and confidence. IRIS is certified as a 2025 Great Place to Work in the UK, Ireland, India, Romania, Canada and the USA.
To see how IRIS helps organisations get things right first time, every time, visit www.iris.co.uk or follow IRIS Software Group on LinkedIn, Twitter and Instagram.
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