Starling Group, the parent entity behind UK-based digital challenger bank Starling Bank, looks set to acquire Ember, an all-in-one accounting and tax platform.
Once official, the deal will see tax and bookkeeping software from Ember built into Starling Bank’s app and online bank, providing small business owners with an all-in-one solution to manage their finances, from bank transactions to tax submission.
The news comes as many sole traders, landlords, and other SMEs aren’t yet ready to report their tax online, even though HMRC will start ‘Making Tax Digital’ compulsory from April 2026.
Starling Bank, which has a nine per cent market share for small business banking, plans to integrate Ember’s HMRC-recognised software by the end of 2025, making it easy for those impacted to comply with the new legislation.
This integration will become part of a suite of services that enable Starling business customers to boost productivity and efficiency. This includes Spaces, which enables business owners to put money aside for designated purposes, Bills Manager, which helps them pay suppliers on time, and Spending Intelligence, a new feature that uses AI to help them track spending.
Ember currently serves the customers of companies including HSBC, Revolut, Barclays and Lloyds; however, its software will become exclusive to Starling Bank customers in 2026. Starling plans to discontinue Ember’s accountancy advisory services.
Adeel Hyder, managing director of SME banking at Starling Bank, said: “Ember’s platform is beautifully designed to simplify complex accounting tasks through a user-friendly interface. As Starling ramps up the roll-out of best-in-class solutions for small businesses, we will continue to build, partner or buy as best meets customers’ needs.”
‘Setting a new standard’ for accounting
Daniel Hogan and Aaron Shaw, co-founders of Ember, also shared: “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.”
HMRC’s ‘Making Tax Digital’ legislation will require all sole traders and landlords earning over a certain threshold to submit quarterly submissions to HMRC using an approved software provider, in addition to the end-of-year Self Assessment they currently file. From April 2026, an estimated 780,000 sole traders and landlords will be impacted. Ember’s HMRC-recognised software has been designed specifically to help business owners seamlessly navigate these requirements.
“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,” added Declan Ferguson, Group CFO at Starling Group. “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.”
