Tax processing startup TaxScouts has closed a new funding round to double its team and expand its operations.
TaxScouts, which started catering for the self-employed last summer, assigns a qualified accountant from its network to prepare the client’s tax return and offer advice about their personal income for a flat rate of £99.
The new £1.2m round of investment, led by SpeedInvest and backed by Finch Capital and Seedcamp, follows a previous £300,000 round in July last year. TaxScouts will invest the extra money in operations and marketing work to broaden its network of accountant partners across the UK.
The company expects to double the size of its team and reinforce existing partnerships with tech companies supporting customers who need to prepare self assessment returns.
Reducing workload with automation
The platform partially automates the tax assessment process, gathering most of the information by pulling tax data from online sources such as HMRC’s website and allowing the client to scan and submit other documents using their smartphone.
TaxScouts claims that further software developments will cut more time out of the process, potentially saving partner accountants 3-5 days a month during peak season.
“With an ever increasing amount of people in the UK experiencing non-standard income and with late fines amounting to billions last tax season alone, the time is better than ever to fundamentally redefine the experience, to make it seamless for everyone, ” said Anthony Danon, principal at SpeedInvest.
Growing customer base
TaxScouts, which was founded by former employees and alumni of TransferWise, Skype and MarketInvoice, says it has been doubling its user base every month since October last year.
“People truly seem to appreciate the online tax service combined with personalised advice from qualified accountants, so with this new round of investment we’ll be able to focus on scaling the company to keep improving our services to both taxpayers and accountants,” said TaxScouts Mart Abramov, co-founder and CEO Mart Abramov.