HSBC Holdings has partnered with Ember, an accounting-software FinTech, to roll out accounting and tax tools for small UK business customers, according to a report from Bloomberg.
HSBC is aiming to support these businesses in preparing for the UK’s Making Tax Digital (MTD) rules, set to come into force in 2026. These rules will require quarterly financial reporting instead of the current yearly data submissions.
HSBC will offer its UK business customers on its online banking platform real-time profit and loss, self-assessment tax, and available dividends reports. This move positions HSBC to compete with established accounting software providers such as Xero Ltd. and Sage Group Plc.
Ember co-founder Dan Hogan described the tax rule changes as an “insanely big” opportunity for banks, noting that most of the UK’s 1.75m affected business owners lack the necessary tools to maintain digital tax records. In a separate announcement, Ember revealed it had secured £4m in additional funding from investors including Valar Ventures and Shapers.
Tom Wood, head of global payments solutions at HSBC UK, highlighted the time-consuming nature of accounting tasks for small business owners, who would prefer to focus on growth and expansion. Wood said, “Small business owners spend huge amounts of time on laborious accounting tasks when they would much rather be seeking new opportunities, delivering on orders and expanding.”
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