Starling has entered an agreement to acquire Ember, a UK-based fintech, and integrate its tax and bookkeeping software into the Starling Bank app.
Ember is an accounting and tax platform for SMEs, offering its clients a solution that helps them manage their finances, such as bank transactions and tax submissions. Its software will be integrated exclusively into Starling Bank’s business banking suite ahead of the Government’s deadline for digital tax reporting.
HMRC’s ‘Making Tax Digital’ legislation will require all sole traders 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 are expected to be impacted, according to Starling.
Supporting SMEs amidst legislation changes
SMEs like sole traders and landlords will be required to report their tax online as HMRC will start ‘Making Tax Digital’ compulsory from April 2026. Starling Bank, which has 9% market share for SME banking, aims to integrate Ember’s HMRC-recognised software by the end of 2025, enabling the bank to support those impacted by the new legislation.
Ember’s platform simplifies complex accounting tasks through a user-friendly interface, helping its clients make faster and clearer financial decisions. The integration will complete Starling’s suite of services designed to improve customer efficiency and productivity, such as Spaces, which allows businesses to save funds for designated purposes, Bills Manager, which helps them pay suppliers on time, and Spending Intelligence, an AI-driven feature that tracks spending. The deal reflects the two companies’ mission to transform how banking and accounting interact.
Ember currently serves companies such as HSBC, Revolut, Barclays and Lloyds. However, its software will be exclusively integrated into Starling’s banking app in 2026. After the acquisition and the customary closing conditions are complete, Starling will discontinue Ember’s accountancy advisory services. Targeted acquisitions like Ember are a key part of the company’s strategy to continue to grow Starling Bank in the UK and Engine by Starling overseas. Comparing the growth of Fleet Mortgages, a firm acquired in 2021, Starling is confident that Ember will follow the same trajectory, offering improved tools and becoming a popular addition to its offering.
