Starling Group has announced an agreement to acquire Ember, a UK-based accounting fintech company, for an undisclosed sum.
The acquisition aims to integrate Ember’s digital tax and bookkeeping software into Starling Bank’s existing app and online banking platform, providing small business owners with a solution for managing finances including bank transactions and tax submissions.
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Starling said the integration comes as many sole traders, landlords, and small and medium-sized enterprises (SMEs) are not yet prepared for the UK’s Making Tax Digital initiative, which becomes compulsory from April 2026.
The legislation mandates that sole traders and landlords earning above a certain threshold submit quarterly tax reports to HM Revenue and Customs (HMRC) using approved software, alongside their annual self-assessment.
Ember’s software, recognised by HMRC, is designed to assist business owners in meeting these requirements.
Starling Group CFO Declan Ferguson said: “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.
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By GlobalData“Just as Fleet Mortgages has flourished since we bought it in 2021, I am 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 said: “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 are setting a new standard for how banking and accounting should work together – seamlessly integrated and refreshingly simple.”
Starling Bank, which is said to have a 9% market share in small business banking, plans to fully integrate Ember’s software by the end of 2025, facilitating compliance with the new digital tax legislation.
Currently, Ember caters to clients of major banks such as HSBC, Revolut, Barclays and Lloyds.
However, from 2026, its software will be exclusive to Starling Bank customers.
Starling also plans to discontinue Ember’s accountancy advisory services following the acquisition, which remains subject to customary closing conditions.
