Fractal is now tomato pay
16 December 2020
London, UK – untied, the UK’s personal tax app, and Fractal Labs predict that the incorporation of untied’s tax capability with Fractal’s invoicing and management software will decrease average outstanding debt to SMEs by 29% by 2025, saving the UK economy £1bn annually.
The partners have revealed that their SMART* initiative has just moved into beta integration. The initiative received £2.5m of backing from the Banking Competitions Remedies Capability and Innovation Fund**, which has an express purpose to support the development of new services for SMEs.
Together the partners are building an integrated solution that combines collecting revenue, controlling costs and managing cash. Tax forms a key part of this. SMART makes use of untied’s tax APIs that allow third parties to embed robust and secure personal tax capability into their own apps and services. It will also incorporate Making Tax Digital.
During the closed beta trial, emphasis will be placed on the user journey and extend the partners’ existing capability – including Fractal’s tomato pay service and untied’s personal tax app.
untied’s CEO, Kevin Sefton commented: “Tax is often overlooked by services offered to SMEs or is otherwise incomplete. The SMART initiative is the first fully integrated and personal tax compliant end to end service for SMEs. We’re excited about deploying it with Fractal.”
According to the FSB Time to Act report, small businesses are owed on average £6,142, and as a consequence of not being paid on time, 37% experience cash flow difficulties and 30% have been forced to use an overdraft. Retail payments authority Pay.UK shows that the balance of outstanding late payments almost doubled to £23.4bn in 2019 and the average wait time for unpaid invoices grew by 11 days to 23 days.
The findings follow previous research from Pay.UK and FSB that shows the UK late payment crisis could lead to the closure of 50,000 small businesses a year at a cost of £2.5bn to the economy.
–ENDS—
Notes to editors
* SMART = SMEs Manage Accounts Receivables and Tax
**About Banking Competition Remedies (BCR) Capability and Innovation Fund: This is a package of measures with the aim of achieving the objective of promoting competition in the market for banking services to SMEs. It stems from state aid measures given to RBS and approved by the European Commission in 2009. £100m is currently being redeployed through “Pool E”, of which £20m is available to facilitate the commercialisation of financial technology that is relevant to SMEs. Find out more about the BCR Capability and Innovation Fund
About tomato pay: tomato pay (formerly Fractal Labs) is a platform-as-a-service that is reinventing how Small-Medium-Enterprises (SMEs) execute payments and access financial services. tomato pay helps financial institutions (FI) and their SME clients save money by providing a smarter payments engine and an insights platform to deliver the right product, to the right SME, at the right time. Find out more about tomato pay.
About untied: untied is the UK’s personal tax app. It’s built for people, not accountants and is designed especially to help sole traders to get on top of their taxes. untied is the only end to end app that enables users to link their bank accounts, makes tax sense of their transactions and files directly to HMRC. untied launched untied lite in April, the first tax product designed specifically for gig/platform workers. untied’s partners include Revolut, Deliveroo, Stuart and Deloitte. untied is regulated by the FCA, supervised by the Chartered Institute of Taxation and recognised by HMRC. Find out more about untied.
Contact: Chantal Heckford pr@untied.io