HSBC Introduces Tax Tools for UK Businesses
HSBC Holdings is taking proactive steps to support its small business clientele in the United Kingdom as they brace for upcoming changes in tax regulations. Recognizing the impending challenges posed by the UK’s Making Tax Digital set to be enforced in 2026, Europe's largest bank is collaborating with accounting software fintech Ember to equip businesses with essential tools for compliance and efficiency.
Addressing Time-Consuming Accounting Tasks
Tom Wood, HSBC UK's head of global payments solutions, highlighted the burden small business owners face in managing laborious accounting duties, diverting valuable time away from core business activities. The partnership with Ember aims to alleviate this strain, enabling entrepreneurs to focus on growth opportunities and operational expansion.
Empowering Businesses with Real-Time Reporting
Through HSBC’s online banking platform, business customers will gain access to a suite of real-time reporting features. These include comprehensive profit and loss statements, self-assessment tax reports, and insights into available dividends. This move places HSBC in direct competition with established accounting software giants like Xero and Sage Group.
Seizing Opportunities in Tax Regulation Changes
Ember co-founder Dan Hogan emphasized the transformative potential of the impending tax rule changes, describing them as an "insanely big" opportunity for financial institutions. With a significant portion of the UK's 1.75 million affected business owners lacking adequate digital tax record-keeping tools, banks have a crucial role to play in providing accessible solutions.
Ember Secures Additional Funding for Expansion
In a testament to the growing demand for digital accounting solutions, Ember announced it would secure £4 million (S$6.8 million) in additional funding. Led by investors Valar Ventures and Shapers, this funding injection will fuel Ember's efforts to further develop and enhance its offerings, ensuring small businesses have the necessary support to navigate evolving tax landscapes.
HSBC's proactive approach underscores the importance of financial institutions in facilitating the transition to digital tax compliance, empowering small businesses to thrive in an increasingly complex regulatory environment.
