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TaxScouts, the company making tax preparation effortless for the UK market, has announced a Series A investment round of £5M to further its mission to build a Pan-European Tax Service. The company is expanding into its first market outside the UK and is establishing a team in Spain, following the appointment of a Country Manager.
The latest investment round brings its total funding to date to £6.5M. The £5M Series A has been led by Octopus Ventures, with previous investors SpeedInvest, Seedcamp and Finch Capital, also returning for the round. They have been joined by Clocktower Technology Ventures, a Californian headquartered VC specialising in financial technology, TaxScout’s first American investor.
Having been successful with its service to navigate the UK tax system, Spain has been chosen as the first market for the business due to the size of the market and the complexity of the tax system. TaxScouts will expand to further markets soon after.
Mart Abramov, Co-Founder and CEO of TaxScouts, commented: “We see a huge amount of potential in launching TaxScouts into Spain. The market is double that of the UK, and this is the first step to us building a Pan-European tax service. This investment will enable us to quickly scale up a team to support our new Country Manager in Madrid, and launch other new products in the UK.”
Since launching in January 2018, TaxScouts has grown 5X year-on-year. The company expects to file tens of thousands of tax returns over the next year and is scaling up its partner network with even more accountants around the UK.
In just a few clicks, customers provide enough information for a certified TaxScouts accountant to quickly prepare their tax return. This is submitted to HMRC via an integration, often in less than 24 hours, for the flat fee of £119. Where possible the service pulls information from online sources.
Nick Sando, Investment Manager at Octopus Ventures, added: “We all know tax can be a nightmare, and for many, it can fill us with a sense of dread. It’s one of those things we know we have to do, but we don’t rush to do. TaxScouts changes this. Having seen the success of TaxScouts and the potential for this to be replicated in other markets with complex tax systems, we see a huge potential for one service that works for everyone.”
Anthony Danon, Associate Partner at Speedinvest, said: “Having worked with TaxScouts and followed the team since 2018, we are delighted to continue to support the company. Co-Founders Mart, Dan, and Kaupo have great experience under their belts having come from Transferwise, MarketInvoice, and Skype.
“They have built a great team and a strong product, and we look forward to watching them expand into Europe.”