Wise Software Glitch Leads To 4000 Incorrect Tax Statements

TL;DR

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Wise says a software error at a third-party provider led to incorrect tax statements for roughly 4,000 UK customers using its investment products between 2021 and 2025. The company says it has corrected the statements, is discussing a bulk settlement with HMRC to address any tax shortfall, and will compensate customers who overpaid.

Wise has contacted roughly 4,000 UK customers to correct tax statements that contained inaccurate figures for investment income and capital gains, after a third-party software error affected statements issued from 2021 through 2025. Wise says it has fixed the problem and is discussing a bulk settlement with HM Revenue & Customs (HMRC) to address any resulting tax shortfall.

The Financial Times reported Thursday, October 8, that Wise had emailed affected users of its Wise Asset service. The error involved a third-party provider’s calculations of amounts customers earned from stocks and funds. According to the report, incorrect figures were supplied for customers to use in their UK self-assessment tax returns.

Wise said the problem affected customers using its Wise Interest and Stocks investment products. In a statement to PYMNTS, the company said it had identified errors in software used by a third-party provider, corrected the issue and issued revised statements to affected customers. Wise also said it was proactively addressing potential liabilities and that there was no ongoing risk to customers.

The company told the FT it was in discussions with HMRC about a “bulk settlement” for any tax shortfall caused by the inaccurate statements. Wise said it would compensate customers who had overpaid. It cautioned that receiving an incorrect statement does not necessarily mean a customer paid the wrong amount: individual tax outcomes can vary with a person’s circumstances.

How the Error Could Affect Tax Bills

Incorrect figures on tax paperwork can lead some customers to report the wrong income or gains, potentially resulting in an underpayment or overpayment. The statements covered several tax years, so affected users may need to check whether the figures they filed match the corrected documents. The scale of any resulting tax adjustments has not been disclosed.

Wise’s proposed approach matters because it could address shortfalls through an arrangement with HMRC, rather than leaving each customer to resolve the issue without guidance. The company has also said it will compensate customers who overpaid. The precise process, eligibility rules and timing for those payments have not been made public in the source reports.

The episode also highlights the consequences of relying on a supplier’s software for calculations used in tax reporting. Wise said its own quality controls identified the failure, but the error affected statements spanning 2021 to 2025. The company’s statements describe the issue as corrected; the amount of tax involved and the number of customers who actually filed or paid incorrectly remain unknown.

Statements Covered Five Tax Years

The issue concerns tax statements for people using Wise’s investment-related products in the UK, not all Wise customers. The company attributed the inaccurate calculations to a third-party software provider. The affected information included figures for income and capital gains that customers could use when preparing self-assessment returns.

Wise told PYMNTS that in-house quality controls led it to identify the software errors, after which it investigated and reported the issue. The company said corrected statements have been sent to affected customers. The FT’s report placed the affected period between 2021 and 2025, indicating that the matter spans multiple tax years rather than a single filing period.

The report also comes as Wise faces other regulatory scrutiny. The source material says Belgian authorities were reported in June to be examining potential money-laundering offenses and whether accounts had been used by criminal groups; those matters are separate from the tax-statement error. In July, Wise said it planned to submit a new application for a US national trust bank charter after the Office of the Comptroller of the Currency denied an earlier application, citing concerns about its anti-money-laundering and counter-terrorist-financing program.

““We have fixed the issue, issued corrected statements to affected customers and are proactively redressing potential liabilities, with no ongoing risk to customers.””

— Wise, in a statement to PYMNTS

The Tax Impact Is Not Yet Known

It is not clear how many of the roughly 4,000 customers submitted returns using the incorrect figures, or how many ultimately paid too much or too little tax. Wise said customers’ personal circumstances mean that an inaccurate statement would not automatically produce an incorrect tax payment.

The reports do not give the total value of the misstated income or gains, the amount of any tax shortfall, or the terms and timetable of the proposed settlement with HMRC. They also do not specify how customers will claim compensation for overpayments or whether revised tax filings will be needed in particular cases. Wise’s statement that there is no ongoing risk is the company’s assessment; details of any independent review or regulatory findings are not provided.

Wise and HMRC to Settle Shortfalls

Wise says it is continuing discussions with HMRC over a bulk settlement for any tax shortfall and is addressing potential liabilities. The next clear milestones are the outcome of those discussions and further information from Wise about customer compensation and any steps affected users should take.

Customers who received a corrected statement can compare it with the figures used in their tax returns. The source reports do not set out individual tax advice or a single remedy for every customer, and Wise has not publicly detailed whether customers must amend returns. Any specific filing or payment action will depend on a person’s circumstances and instructions from the relevant tax authority or a qualified adviser.

Key Questions

How many Wise customers were affected?

Wise contacted roughly 4,000 UK users, according to the Financial Times report. The statements concerned customers using Wise’s investment products.

What caused the incorrect tax statements?

Wise said a third-party provider’s software miscalculated amounts customers earned from stocks and funds, leading to inaccurate income and capital-gains figures.

Which tax years were involved?

The reported error affected statements covering 2021 to 2025. Wise said it has issued corrected statements to affected customers.

Will every affected customer owe more tax?

No such conclusion has been reported. Wise said not everyone who received an incorrect statement would have paid the wrong amount, because tax outcomes depend on individual circumstances. The number of customers with an actual overpayment or shortfall is not known.

What is Wise doing about any tax shortfall?

Wise says it is discussing a bulk settlement with HMRC to address any shortfall and will compensate customers who overpaid. The settlement terms and compensation process have not been reported.

Source: rss