HMRC signs £175m, 10-year deal with Quantexa

HMRC has awarded Quantexa a £175 million, 10-year contract to modernize the tax authority’s core data infrastructure, reduce tax gaps and expand automated risk detection and oversight.

Under the agreement, Quantexa will deploy its Decision Intelligence Platform to consolidate fragmented records, link entities and transactions, and support advanced analytics. HMRC expects the platform to speed decision-making, surface risks earlier and automate routine checks so staff can focus on complex compliance cases.

The work will include rebuilding parts of HMRC’s data architecture and introducing tools that create context from disparate records for investigations and everyday processes. HMRC plans a phased rollout over the decade, combining infrastructure upgrades with new analytics capabilities to detect anomalous patterns and provide faster responses to taxpayer queries where appropriate.

Vishal Marria, founder and chief executive of Quantexa, said: “Turning fragmented data into timely, contextual decisions and embedding trusted, governed AI can help public sector organizations make more informed decisions.” Kanishka Narayan, the UK government’s AI minister, praised the partnership and said it would help HMRC bring its data together and deploy AI safely at scale to support better decisions and improve efficiency.

Quantexa, founded in 2016 and based in London, reached a $1.8 billion valuation in 2023 and announced plans to invest £85 million in the UK and open an AI Innovation Center. In 2024 the company entered a partnership with PwC UK to expand automated decision-making and integrate third-party data using its platform.

The contract addresses government requirements for data sovereignty and governance. Quantexa has positioned its platform around governed AI and regional compliance, aiming to meet UK regulatory needs rather than relying on experimental models.

HMRC and Quantexa did not disclose financial details beyond the headline value and the contract term. The agreement is among several recent public-sector investments in AI and data platforms intended to improve efficiency and compliance across government services.