TaxScouts, the U.K. “tax preparation” startup founded by TransferWise and MarketInvoice alumni, has created some new paperwork of its own. The London-based company has raised £1.2 million in seed funding.Leading the new round is SpeedInvest, with participation from Finch Capital and SeedCamp. It adds to £300,000 in pre-seed investment that TaxScouts announced six months ago.Combining “automation” with a network of human accountants, TaxScouts’ service is designed to support you through your annual tax filing preparation and submission. However, the headline draw is that the company charges a flat fee of £99 if you pay in advance, and promises a turnaround of 1-2 days.
To achieve this, the web app walks you through your tax status, income and expenses without assuming too much prior knowledge. This includes asking you to upload or take a photo of any required documents, such as invoices or dividend certificates. The idea is that all of the admin is captured digitally and packaged up ready for an assigned accountant to check.
Last year, I took the service for a spin, the first time in years that I haven’t left my tax return to the last minute. The accountant assigned to me was helpful and his advice seemed quite good. Most importantly, the communication was speedy, both over text and in a call we needed to have to talk through the pros and cons of two alternative ways to expense a car for work.Meanwhile, I’m told accountants like the service, too, as it potentially enables small practices to scale and therefore take on more clients.
Powering this is TaxScouts’ client management system for accountants, which the startup claims is saving 3-5 days of work per month for its accounting partners.To that end, TaxScouts says it hopes to quadruple its network of accountant partners by the end of 2019. Its longer term aim is to reduce the workload of accountants by 80 percent through further “process automation and digital data processing.”
TaxScouts has built automation that brings simplicity, speed and convenience through a unique approach that creates shared value across taxpayers and accountants. We are excited to be backing such a product-minded team that has led product and engineering in some of U.K.’s best fintech startup stories.”