Wise, the financial technology company, is in discussions with the UK’s tax authority, HM Revenue & Customs (HMRC), to reach a settlement following software errors that led to incorrect tax statements for approximately 4,000 UK investment customers. The errors, which occurred between 2021 and 2025, resulted in some users paying either too much or too little tax on their investments.

The inaccuracies were linked to Wise’s Wise Asset service, launched in 2021 to broaden the company’s offerings beyond its core cross-border money transfer business. Through this platform, customers invest in stocks and funds, with Wise managing around $9 billion in global assets. A third-party software provider was identified as the source of the miscalculations affecting capital gains and income figures reported to HMRC in customers’ self-assessment tax returns.

Wise informed affected users this week and is working with HMRC to negotiate a “bulk settlement” to address any outstanding tax liabilities. The company has committed to reimbursing customers who overpaid due to the errors. Internal reviews brought the issue to light, prompting Wise to take corrective measures.

The company’s efforts to resolve the situation come amid broader challenges, including regulatory scrutiny. Wise has previously faced setbacks such as the refusal of a US banking license and investigations into its anti-money laundering controls. CEO Kristo Kaarmann has also been fined in connection with previous tax compliance issues.

Wise serves a global customer base of 19 million users, with this software problem limited to a subset of UK investors using the Wise Asset platform. The company has emphasized cooperation with HMRC in addressing the tax discrepancies and ensuring affected customers are compensated where necessary. Discussions continue as both parties work towards a resolution.