Wise to Cover UK Customers’ Tax Shortfalls After Software…
By Abdelaziz Fathi
AI summary of the source article
Wise is seeking to settle tax shortfalls for approximately 4,000 UK customers of its Wise Interest and Stocks products after a third-party software error generated inaccurate tax statements between 2021 and 2025. The errors affected reporting for income tax and capital gains tax on self-assessment returns. Wise has proposed a bulk settlement to HM Revenue and Customs to cover underpaid amounts, plans to compensate users who overpaid, and confirmed the underlying software issue has been resolved. While the total remediation cost remains undisclosed, the issue adds to growing scrutiny surrounding Wise's internal controls as it scales its investment offerings and core financial infrastructure.
Why it matters
The incident highlights the operational and reputational risks fintechs face when outsourcing specialized tax calculations as they expand from payments into regulated investment services.
Key facts
- Around 4,000 UK customers using Wise Interest and Stocks received incorrect tax statements between 2021 and 2025 due to a third-party software error.
- Wise proposed a bulk settlement to HMRC to cover underpaid taxes and plans to compensate customers who overpaid.
- Wise had 19 million active customers in fiscal 2026, with approximately $9 billion of its $39 billion in customer holdings invested through Wise Assets.