Starling Bank has completed its first acquisition in four years with the purchase of Ember, a London-based fintech specialising in digital tax and accounting software for small businesses.
The deal, subject to final closing conditions, will see Ember’s HMRC-recognised tax and bookkeeping tools integrated directly into Starling’s mobile app and online banking platform by the end of 2025.
The move comes ahead of HMRC’s Making Tax Digital deadline in April 2026, which will require sole traders and landlords earning above a certain threshold to file quarterly digital tax returns using approved software, in addition to their annual self-assessment.
Starling estimates that as many as 780,000 sole traders and landlords will be affected. By embedding Ember’s software, the challenger bank hopes to make the transition seamless for its SME customers.
From 2026, Ember’s software will become exclusive to Starling Bank customers. Its current partnerships with HSBC, Revolut, Barclays and Lloyds will end, and Starling will also discontinue Ember’s separate accountancy advisory services.
Declan Ferguson, group CFO at Starling, said the deal underlines the bank’s ambition to expand its ecosystem through selective acquisitions.
“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,” he said.
“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 (pictured), said they launched the company to simplify accounting for small business owners.
“We created Ember to take the pain out of accounting for small businesses – to help people make faster, clearer financial decisions without the stress,” they said.
“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.”
The acquisition marks Starling’s first takeover since its 2021 purchase of Fleet Mortgages, and signals that consolidation in the UK fintech sector is set to continue.
For SMEs, the deal could prove timely. With digital tax compliance looming, Starling is positioning itself as a one-stop shop for both banking and accounting – a move that could give it an edge over rivals as Britain’s small business community braces for a fundamental shift in how it reports to HMRC.
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.