HSBC Ember Partnership to Ease Tax Accounting Burden for UK Businesses

HSBC UK has tapped Ember’s intuitive tax accounting software to support its My Business Finances digital banking platform. According to Yahoo Finance, the HSBC Ember partnership will make Ember’s services accessible to HSBC customers via digital bank accounts. HSBC uses its digital banking platform to ease financial management tasks for its small and medium-sized business clientele. My Business Finances gives users real-time access to profit and loss statements, dividends, and tax assessments.

Ember’s tax accounting software takes this a notch higher by drawing bank transactions and categorizing them based on tax code.  With this feature, businesses can add receipts, monitor expenses, generate invoices, and perform basic accounting tasks on My Business Finances platform.
Users can view a business income and expenditure summary, tax payable, and the amount available for owner dividends. By handling these critical accounting tasks, the digital banking platform empowers business owners to make data-driven decisions and focus on growing their businesses.

HSBC UK’s Global Payments Solutions Head, Tom Wood said, My Business Finances not only automates accounting tasks but also offers greater visibility and control over finances, allowing owners to make decisions which are right for them. It also makes completing annual tax returns easier.”

On his part, Ember’s Co-Founder, Dan Hogan said, “We are thrilled to collaborate with HSBC UK on this innovative venture. Together, we are setting the stage for a future where business growth is supported by smart, seamlessly integrated financial tools.”

Embedded Finance at It’s Best

The HSBC Ember partnership places digital tax service by the fintech startup in front of hundreds of thousands of small and medium-sized clients. It’s a classic example of how fintech startups can access new distribution channels by embedding their solutions in existing products.

The partnership deal is a win-win for both parties. With this move, HSBC will be able to compete with well established accounting technology providers like QuickBooks and Sage Group.  On the other hand, embedded finance firm Ember will provide additional features like compilation of VAT returns to businesses at a fee. Leveraging its team of in-house accountants, the startup will be supporting paid-up customers with complex tax tasks like management of annual corporation tax.

The free tax accounting software version that Ember avails on HSBC’s digital banking portal will serve as a funnel for acquiring paying clients for the startup company.

Opportunity in Tax Regulation Shift

The HSBC Ember partnership comes at a time when the UK is preparing to transition to a full digital tax system. Starting in 2026, all UK businesses will be expected to maintain digital records and file quarterly reports to the government. These regulatory changes are likely to boost business interest in digital accounting software. HSBC and Ember are already positioning themselves to tap into the approximately 1.8 million market of business owners in the country.

The opportunity presented by these regulatory changes is among the key reasons embedded finance firm Ember was able to raise about $6.3 million from Shapers, Viola Fintech, and Valar Ventures.