Wise is negotiating a
settlement with HM Revenue & Customs after software errors resulted
in incorrect tax statements for about 4,000 UK customers using its investment
products.
The errors affected
statements issued between 2021 and 2025, according to the Financial Times. Wise
contacted affected customers this week after identifying problems with software
provided by a third-party supplier.
London’s trading industry is coming home!
The development
follows a previous tax-related regulatory case involving Wise CEO Kristo
Käärmann, who was fined
£350,000 by the FCA in 2024 for failing to disclose significant tax issues.
Wise Corrects Investment Tax Statements
The software
incorrectly calculated some customers’ investment income and capital gains,
which are used in UK self-assessment tax returns. Wise said receiving an
incorrect statement did not necessarily mean a customer had paid the wrong
amount of tax, as individual circumstances vary.
Wise said it was
discussing a “bulk settlement” with HMRC to cover potential tax shortfalls. It
will also compensate customers who overpaid.
“Wise identified that
errors in software used by a third-party provider led to incorrect tax
statements for a limited number of customers,” the company said.
“We have fixed the
issue, issued corrected statements to affected customers and are proactively
redressing potential liabilities, with no ongoing risk to customers.”
FT Exclusive: The money transfer app said it was in talks with HMRC about a ‘bulk settlement’ after software failures led to about 4,000 users being given incorrect tax statements between 2021 and 2025. https://t.co/WP9TwyrvX5 https://t.co/gGJLwb88Oa
— Financial Times (@FT) October 8, 2026
Wise Faces Wider Regulatory Scrutiny
The tax error comes as
Wise faces wider regulatory scrutiny this year. Belgian
authorities are investigating potential money laundering offences involving
the company, while US
regulators rejected its application for a banking licence in July, citing
“deficiencies” in its anti-money laundering checks.
Wise has about 19
million users globally. It launched its Assets service in 2021, initially
offering stock investments before adding an interest product.
The company listed in
London in 2021 at a valuation of almost £9 billion before later moving its
primary listing to the US.
This article was written by Tareq Sikder at www.financemagnates.com.
—
— CONTENT NOT MODERATED BY G6
— Please be careful with this content. If you don’t think it should be here, please get in touch with us at [email protected]
