Quantexa wins £175 million HMRC data modernisation deal

Quantexa has won a £175 million, 10-year contract from HM Revenue & Customs to modernise the tax authority's data infrastructure.

The award gives the London-founded software company a central role in one of the UK's larger artificial intelligence deployments, as HMRC seeks to bring together fragmented datasets and introduce governed use of AI across core operations.

Data overhaul

HMRC plans to use the programme to create a more unified view of its data to improve operational performance, identify tax at risk and support broader efforts to reduce the tax gap. The work is also intended to strengthen controls and support customer service processes.

The contract focuses on HMRC's core data foundation, an area that has grown in importance for public bodies trying to update ageing systems while maintaining oversight of how data is used and how automated decisions are made.

The project reflects a wider push across government to adopt AI tools without losing control over sovereignty, auditability and explainability. For tax authorities in particular, data quality and integration have become critical as agencies try to detect fraud, manage compliance and automate routine processes.

Government focus

Ministers presented the HMRC contract as an example of UK-developed AI and data technology being used in a major public service setting. The deal also highlights the growing role of domestic software suppliers in government transformation programmes.

"Quantexa is at the forefront of British innovation, developing the technologies we need to power next-generation digital public services that are smarter and more secure. This partnership will help HMRC deploy AI safely at scale, bringing its data together to support better decisions, improve efficiency and deliver a stronger service for taxpayers.

"By using advanced data tools to identify risks and automate routine tasks, HMRC can focus its efforts where they matter most. This is a practical step towards a better service for taxpayers," said Kanishka Narayan.

Quantexa was founded in London and has built its business around software that connects and analyses data from multiple sources. The company works with public and private sector organisations on fraud, risk, compliance and data modernisation projects.

AI blueprint

The HMRC award gives Quantexa a prominent reference project in the domestic market at a time when governments in Europe and elsewhere are weighing how to use AI in sensitive public functions. Tax administration has emerged as one of the clearest test cases because of the volumes of data involved and the need for traceable decisions.

Vishal Marria said: "Governments around the world are facing a common challenge: how to turn complex, fragmented data into confident, timely decisions. By creating context from data and embedding trusted, governed AI, we are helping HMRC improve how public sector organisations make confident, informed decisions."

Trade officials also pointed to the international significance of the contract, presenting it as a sign of demand for British data and AI products in government settings beyond the UK.

Global relevance

"This announcement underscores the strength of the UK's advanced data and AI ecosystem, and its relevance to governments around the world. Quantexa's work with HMRC shows how UK-developed technology can deliver impact at national scale, supporting more efficient public services, safeguarding revenues and enhancing the taxpayer experience. It is exactly the kind of innovation we are keen to share with international partners," said Morgan.