The feature is an extension of untied’s existing payment request facility and is embedded into the invoice. The Open Banking-enabled service allows untied users, such as self-employed tradespeople, to send invoices with an embedded payment request link directly from the untied app. Their customers can pay via Open Banking using their own bank’s mobile/online apps. As befits the UK’s personal tax app, when money is received, it’s automatically recorded properly for tax purposes.
Funds are instantly sent directly from the payer’s bank account to the person who sent the invoice. Unlike direct debits, bank transfer, or card payments, there is no need to enter account numbers or sort codes or share card details. Moreover, it is free for both parties, the official press release states.
Once an invoice has been sent via the app, an email is sent to the payer – and to the sender if needed - with a PDF copy of the invoice. A payment link is also generated as well as a QR code that can also be scanned if face-to-face. If the payer wants to proceed with the transaction, they choose which of their accounts they want to make payment from and they will be directed to their banking app to pay as normal.
When untied users receive any funds, the transaction is matched to any pre-set tax tag, which automatically updates it on their tax return too. This puts the supplier or landlord safe in the knowledge that it will be included in their earnings for the tax year and incorporated in tax calculations and submissions to HMRC.
The service is powered by tomato pay as part of the businesses’ SMART project backed by the Banking Competition Remedies (BCR) Capability & Innovation Fund.
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