Behind the Scenes

How We Built
TaxCounsel

TaxCounsel isn't a chatbot with tax knowledge bolted on. It's a purpose-built system where every line of code and every instruction to the AI was written with one goal: produce memoranda that a senior partner would be proud to sign.

01 / THE PROCESS

From question to memorandum
in five steps

01

You describe the situation

Enter the client details, tax year, query type, and financial figures. The more context you provide, the deeper the analysis.

Income sources, deductions, reliefs claimed, entity structure, timing considerations — everything a senior adviser would want to know before writing an opinion.

02

The AI reasons through it

Our system prompt — over 400 lines of carefully crafted instructions — guides the AI to think like a senior tax adviser at a leading firm.

It separates dividend from non-dividend income, applies the correct rate bands, checks relief eligibility, identifies planning opportunities, and flags risks. Every step is shown with full working.

03

Structured output is generated

The result isn’t a wall of text. It’s a structured memorandum with distinct sections, each designed for clarity and professional presentation.

Executive summary, detailed findings with legislation references, tax calculation tables with full working, prioritised recommendations, risk analysis, next steps with deadlines, and a professional disclaimer.

04

Quality validation runs

Before you see the result, the output goes through a validation layer that checks for common errors in tax calculations.

Rate mismatches, missing HMRC references, incomplete working, and other issues are flagged as errors or warnings. Critical rate mistakes are caught and surfaced immediately.

05

You review and deliver

The memorandum is yours to review, edit, and approve. Export as PDF or Word with your firm branding, email directly to clients, or copy to clipboard.

Nothing leaves the platform without your explicit action. You are the adviser — TaxCounsel is the research engine behind you.

02 / PROMPT ENGINEERING

400+ lines of
tax intelligence

The difference between a generic AI response and a professional tax memorandum is in the instructions. Here's what we built into the system.

Tax Calculation Methodology

The AI follows a strict calculation order: identify income sources, separate dividend from non-dividend income, apply personal allowance tapering, calculate tax at correct marginal rates, then apply reliefs and credits. Every step shows its working.

Rate Accuracy

Dividend rates (8.75% / 33.75% / 39.35%), CGT residential property rates (18% / 24%), savings income Personal Savings Allowance, NIC thresholds — all embedded in the prompt with explicit instructions to never approximate or round incorrectly.

Strategic Thinking

The AI doesn’t just calculate. It identifies spousal transfer opportunities, optimal timing for disposals, relief stacking strategies, and quantifies the tax savings in pounds. This is what separates a computation from advice.

HMRC Reference Database

Over 87 HMRC manual references, legislation acts, and statutory instruments are catalogued in the prompt. Every citation — from BIM35000 to TCGA 1992 s.222 — is linked to the official source so clients can verify with one click.

Professional Standards

Output formatting follows Big 4 memorandum conventions: executive summary first, findings with authority, tabular calculations, prioritised recommendations ranked by financial impact, and risk analysis with mitigation strategies.

03 / BY THE NUMBERS

Quality you can
measure

400+
Lines of AI Instructions

The system prompt that guides every memorandum

87+
HMRC References Catalogued

Manual references, legislation acts, and statutory instruments

Built-in
Validation Checks

Rate accuracy, reference completeness, working shown

All
Tax Years Supported

Analysis across any tax year with correct rates

04 / COMPARISON

Not another
AI wrapper

Generic AI tools

  • Generic prompts with no tax specialisation
  • Unstructured responses requiring manual formatting
  • No validation of rates or calculations
  • No HMRC reference linking
  • No understanding of UK tax methodology
  • No professional disclaimer or risk framework

TaxCounsel

  • 400+ line system prompt written for UK tax
  • Structured JSON output with defined sections
  • Built-in rate validation and error checking
  • 87+ HMRC references auto-linked to sources
  • Strict dividend/non-dividend separation methodology
  • Professional disclaimer on every output format

The adviser stays human.
The research gets superhuman.

TaxCounsel handles the research, calculations, formatting, and HMRC references. You bring professional judgment, client relationships, and the final sign-off. Together, it's advisory at a level that wasn't possible before.

No credit card required

TaxCounsel — Developed by Befree Ltd | Serving UK Tax Professionals Since 2005