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Pie, a UK-based self-assessment tax app, goals to democratise tax for the plenty – free of charge. With the UK authorities’s ‘Making Tax Digital’ initiative set to come back into play subsequent yr, how does this app plan to make its mark?
Launched in July 2023, Pie has already amassed 50,000 downloads and a buyer base that has risen 588 per cent quarter on quarter. Promising to ‘untangle’ the advanced UK tax system, it’s clear to see why so many freelancers and staff are already enticed by the extremely accessible and inexpensive providing.
By leveraging open banking connections to customers’ financial institution accounts, Pie allows clients to submit on to HMRC free of charge (with non-obligatory add-ons), protecting all revenue varieties in a single place, in addition to baby advantages, pension contributions, pupil loans, and tax reliefs. By its app, clients can mark bills and tag invoices to entry tax rebates extra simply. To search out out extra in regards to the providing, in addition to Pie’s plans for the long run, we chat with its founder, Tom McNally.
“We’re at the moment going by means of a seed funding spherical, which is gaining some nice traction – all of our funding has been bootstrapped thus far,” he mentioned, explaining how the app continues to supply free companies.
“The app and submitting taxes by means of it’s fully free – however there are non-obligatory add-ons for these in search of extra assist. Prospects can select from a spread of inexpensive add-ons, similar to extra tax assist and a tax return examine or perhaps a full tax return service. We discover {that a} sturdy proportion of consumers do join these add-ons, because it makes the method much more seamless”.
Pie additionally companions with quite a lot of third events who combine its tax instruments and know-how into their very own techniques – one other option to drum up extra income to assist its ongoing operations. McNally explains that every one funding goes again into making Pie “the most straightforward and inexpensive choice available on the market”.
Funding and partnerships
Having been bootstrapped thus far, Pie is now going by means of a seed funding spherical. “After being the primary firm from the UK to make the International last of the Startup Grind competitors, we’ve additionally now develop into the primary firm to efficiently crowdfund on Crowdcube and not using a lead investor,” added McNally.
“The seed spherical has solely simply gone dwell, however we’re already seeing some important curiosity with over £200,000 of early entry funding registered within the first 72 hours. That is nice to see, because the demand and response to the product from throughout the UK has been actually optimistic”.
Apart from elevating funds to allow its future operations and plans, Pie has already netted some spectacular partnerships. McNally broke them down and hinted at one other incoming partnership with a UK financial institution:
“After Google recognised Pie as a high-potential startup, its head of progress reached out to supply hands-on advertising and technical assist, which has been extremely useful to our journey to date.
“Additional, funding platform eToro (with 30 million world traders), signed a partnership final yr, and with it, Pie turned its unique tax associate – this has, after all, been a implausible partnership for us and them – and is a big signal of issues to come back.
“On that notice, we’re additionally in discussions with a significant high-street financial institution to develop into its sole tax associate too. Each firm we associate with permits us to construct and innovate additional with our product and our service – finally, to make sure we will make tax less complicated for extra folks than ever earlier than”.
Addressing Making Tax Digital
The UK authorities’s Making Tax Digital initiative will come into play subsequent yr. The initiative would require companies and people to maintain digital information, use software program that works with Making Tax Digital and submit updates each quarter, bringing the tax system nearer to real-time.
Finally, the transfer goals to cut back the tax hole – which is the distinction between the quantity of tax that ought to, in idea, be paid to HMRC, and the quantity that’s truly paid.
Nevertheless, considerations stay over whether or not these adjustments will add to the administration burden and complexity of submitting tax returns – largely as a result of requirement for quarterly submissions.
Recognising these challenges, the Pie app goals to assist. McNally explains: “Firstly, the app itself may be very easy to make use of and meets the Make Tax Digital necessities. With this, it would assist folks and companies with the transition through a seamless consumer expertise, match with easy-to-follow prompts and product options. We’ve taken a number of care and consideration when crafting the consumer expertise, to make sure that anybody can log in and file their taxes with ease”.
There are additionally sturdy doubts over the general consciousness of the initiative in any respect – which might trigger main points when it rolls out subsequent yr. Pie has additionally considered that as properly:
“By way of getting ready those that aren’t within the know in regards to the adjustments – we’ll be publishing information, blogs and recommendation on the subject on the Tax Pible – a supply of fact for UK tax, with tax calculators, suggestions and extra – as we strategy the date,” McNally continued.
“Moreover, Pie’s resident tax professional Charlotte Baroukh, shall be sharing recommendation on this through her socials, and chatting with the media – serving to equip folks with the information they’ll want forward of and through Make Tax Digital”.
Seeking to the long run
Lastly, McNally defined Pie’s plans for the long run, trying to develop into the most recent agency to leverage AI in a method or one other.
“As talked about above, we’re going by means of a seed spherical. By this, we’ll be capable of construct extra options and proceed innovating tax options for the self-employed and past.
“We’re actually excited to be asserting one among these new product options very quickly, as we’re growing the world’s first ever AI accountant. I can’t say an excessive amount of about it proper now, but it surely’s a primary for us and all the tax and accountancy trade.
“Additional, as we develop and look to be an important service for the UK as tax turns into digital for all, we’re additionally trying to broaden to extra markets throughout the globe”.
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