Digital bank Starling has made its first acquisition in four years after completing a deal for fellow London FinTech Ember.
Ember’s tax and bookkeeping software, aimed at small businesses, will be built into Starling’s app and online bank.
Many sole traders, landlords and other SMEs aren’t yet ready to report their tax online, even though HMRC will start ‘Making Tax Digital’ compulsory from April 2026. This will require those earning over a certain threshold to submit quarterly submissions to HMRC using an approved software provider, in addition to the end-of-year Self Assessment they currently file.
An estimated 780,000 sole traders and landlords will be impacted. Starling plans to integrate Ember’s HMRC-recognised software by the end of 2025, making it easy for those impacted to comply with the new legislation.
Ember currently serves the customers of companies including HSBC, Revolut, Barclays and Lloyds; however, its software will become exclusive to Starling Bank customers in 2026.
Starling will discontinue Ember’s accountancy advisory services. The acquisition is subject to customary closing conditions.
“We are a natural FinTech consolidator, so targeted acquisitions like Ember will form a key part of our strategy as we continue to develop Starling Bank in the UK and Engine by Starling overseas,” said Declan Ferguson, group CFO at Starling.
“Just as Fleet Mortgages has flourished since we bought it in 2021, I’m confident that Ember’s best-in-class tools will become a fantastic addition to Starling Bank’s offering.”
Daniel Hogan and Aaron Shaw, co-founders of Ember, said: “We created Ember to take the pain out of accounting for small businesses – to help people make faster, clearer financial decisions without the stress.
“Making Tax Digital has created a real call to action for SMEs and Ember provides the solution to this. Our deal with Starling Group will mean that we’re setting a new standard for how banking and accounting should work together — seamlessly integrated and refreshingly simple.”
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