Wise, a London-based fintech company, is in discussions with HM Revenue and Customs (HMRC) over a settlement following software errors that led to incorrect tax statements being issued to some of its investment customers. The issue affected approximately 4,000 UK users of Wise’s investment service, Wise Assets, between 2021 and 2025.

The company identified the problem through internal reviews and traced it back to a failure in software provided by a third party. As a result, affected users received inaccurate capital gains and income figures to report on their self-assessment tax returns. Wise has since corrected the errors by issuing updated statements and is working to address any tax shortfalls on behalf of customers, including reimbursing those who overpaid. The fintech firm emphasized that customers face no ongoing risk from the situation.

Reporting indicates that Wise is negotiating a “bulk settlement” with HMRC to resolve the shortfall collectively, rather than requiring individual settlements for each affected customer. However, the company has not disclosed the potential size of the financial liability.

This incident comes amid several recent challenges for Wise. In May, the company moved its primary stock listing to New York. Subsequently, in July, it was denied a U.S. banking licence due to persistent shortcomings in its anti-money laundering controls. Additionally, in June, European authorities in Brussels initiated an investigation into the company over suspicions that its accounts may have been used for money laundering.

Wise’s chief executive, Kristo Kaarmann, has also faced regulatory penalties in recent years. In 2024, the Financial Conduct Authority fined him £350,000 for failing to notify the regulator about “significant tax issues” during an assessment of his suitability to lead the company. Previously, in 2021, HMRC fined Kaarmann £365,651 for not disclosing a capital gains tax liability arising from the 2017 sale of shares worth £10 million.

Founded in 2011 by Kaarmann and Taavet Hinrikus, Wise has grown to serve 19 million customers worldwide. Originally focused on cross-border money transfers, the company expanded its services to include investment products and debit cards. Its Wise Assets platform, launched in 2021, allows users to invest in stocks and money market funds while still enabling spending on their holdings, reflecting the company’s efforts to diversify beyond international transfers.