Wed, 20 Aug 2025 | BUSINESS SALE
Digital banking giant Starling has struck its first acquisition in four years with a deal for Ember, a FinTech firm based in London. Ember, which is used by a range of financial institutions, has developed a range of digital tax and accounting tools aimed at small business customers.
Following the acquisition, the company’s tax and bookkeeping software will be built into Starling’s app and online banking platform. Starling’s integration of Ember’s HMRC-recognised software is set to complete by the end of the year.
The move comes as HMRC prepares to introduce “Making Tax Digital” in April 2026, from which time it will be compulsory for sole traders, landlords and SMEs earning above a certain threshold to submit quarterly accounts to HMRC through an approved software provider, in addition to the usual end-of-year Self Assessment.
An estimated 780,000 are set to be impacted by the changes and there are widespread concerns that many are not ready. The integration of Ember’s software into the Starling app will make it easier for those eligible for the Making Tax Digital system to comply with the new rules.
Ember’s software is currently used by customers of companies including Barclays, HSBC, Lloyds and Revolut, but will become exclusive to Starling Bank customers from 2026. Furthermore, Starling plans to discontinue Ember’s accountancy advisory services following the acquisition, which is subject to customary closing conditions.
Starling Group CFO Declan Ferguson commented: “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.”
“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.”
Ember co-founders Daniel Hogan and Aaron Shaw added: “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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