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.
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.
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
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.
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