Seed Funding Round
Making Tax Digital, Made Simple
Confidential © 2025 AATAX
What is Making Tax Digital (MTD)?
Making Tax Digital is a UK government initiative requiring businesses to:
Why Now?
Phased Rollout Timeline:
| Date | Who Must Comply | Number Affected |
|---|---|---|
| April 2026 | Income >£50,000 | 864,000 |
| April 2027 | Income >£30,000 | +1,077,000 |
| April 2028 | Income >£20,000 | +975,000 |
| Total | 2.9 million | |
The Opportunity
2.9M
Must adopt MTD by 2028
864K
April 2026 (Year 1)
Phased Rollout:
Current Challenges
New policy confusion
Taxpayers & agents unfamiliar with MTD
4× workload increase
Quarterly vs annual submissions
Time-intensive process
Manual data entry per transaction
Market Structure
Who Manages Tax Filing?
75%
Use Accounting Firms
(2.175M) → B2B
25%
DIY Taxpayers
(725K) → B2C
Current Software Usage
PRIMARY TARGET
Easier conversion
Year 1 Target Market:
Non-software users
~320,000
Total MTD need
~1.07M
Current cost: £144-360/year traditional software
Market Gaps (Our Opportunity)
Non-Software Users (37%)
Sweet SpotB2B: ~240K firm-managed clients (Year 1)
Firms need affordable solution for spreadsheet clients
B2C: ~80K DIY individuals (Year 1)
Need mobile-first, simple solution
Existing Software Users
Secondary Target
User Needs:
DIY Taxpayers
Mobile-first, simple solution
Accounting Firms
Affordable client management
Source: HMRC Making Tax Digital for Income Tax business population statistics: commentary
Market Structure
Total Market: 2.9M MTD Taxpayers
75%
Use Accountants (2.175M)
25%
DIY (725K)
63%
Have Software
37%
No Software PRIMARY
Year 1: 864K Businesses
408,000
clients
240,000
clients → B2B
136,000
individuals
80,000
individuals → B2C
Why This Market?
Forced adoption: MTD mandatory 2026-28
37% unserved: 1.07M need new solution
Price advantage: 48-88% cheaper
Mobile gap: No mobile-first AI MTD exists
B2B: Accounting Firms
TAM: £21.75MTarget Segments:
Primary: Spreadsheet-based clients
Year 1: ~240K | Total: ~808K clients
Secondary: Legacy system users
Need MTD layer for existing tools
Pain Points:
• Current MTD: £36-84/yr per client
• Managing 4× quarterly workload
AATAX Solution:
+ Full dashboard + Xero/Sage/QuickBooks integration
B2C: Individual Taxpayers
TAM: £7.3M+Target Segments:
Primary: DIY without software (37%)
Year 1: ~80K | Total: ~268K individuals
Secondary: Mobile-first seekers
Want simpler than desktop software
Pain Points:
• Traditional software: £144-360/yr
• Desktop-first, complex setup (1-2 hrs)
AATAX Solution:
Mobile-first + 5-min setup + AI receipt capture
Combined Total Addressable Market
£27.19M
(£21.75M B2B + £7.3M B2C)
Revenue Projections
| Year | B2B Revenue | B2C Revenue | Total |
|---|---|---|---|
| Year 1 | £100K (100 firms, 10K clients) |
£27K (363 premium) |
£127K |
| Year 2 | £400K (400 firms, 40K clients) |
£109K (1,450 premium) |
£509K |
| Year 3 | £800K (800 firms, 80K clients) |
£218K (2,900 premium) |
£1.018M |
Key Strategic Focus
Target 37% non-software users (lowest switching costs)
B2B Priority: Dominate spreadsheet clients (£10 vs £30-84)
B2C Priority: Capture DIY with affordable mobile solution
Integration: MTD layer for existing software users
TAM Breakdown:
"AATAX works standalone for non-software users OR integrates seamlessly with your existing accounting software (Xero, Sage, QuickBooks) as a dedicated MTD compliance layer"
1. AI-Powered Intelligence
Smart document processing: Auto-extract data from receipts/invoices
Intelligent categorization per HMRC requirements
AI Chatbot Assistant (B2C) + AI Sidebar Agent (B2B)
Result: 70-85% reduction in manual data entry
2. Direct HMRC Integration
One-tap quarterly submissions
Fully MTD-compliant from day one
Secure API connection with real-time validation
3. Works Standalone OR Integrates
End-to-end mode: Complete bookkeeping solution
Bridging mode: Connects with your existing accounting software (Xero, Sage, QuickBooks)
Key benefit: We complement, not replace, existing workflows
4. Mobile-First for Users, Desktop for Agents
Individual taxpayers: Snap receipts on-the-go
Accounting firms: Full desktop dashboard for multi-client management
5. Dual User Model
Free (B2C): 4 quarterly + 1 year-end submission
Premium (B2C - £75/year): Priority support + unlimited submissions
B2B (£10/client/year): Document extraction, auto-categorization, submission verification
6. Smart Automation with Control
Full automation mode for simple/recurring clients
Manual intervention mode for complex income sources
5-minute setup vs 1-2 hours for competitors
How AATAX Works: Dual-Mode Operation
End-to-end Mode
Complete bookkeeping solution for businesses without accounting software
Receipt Capture
AI Processing
HMRC Submission
Bridging Mode
MTD compliance layer that connects with your existing accounting software
Existing Software
AATAX Bridge
HMRC Submission
Revenue Streams:
B2C - Freemium Model
Free: Basic MTD compliance (4 quarterly + 1 year-end submission)
Premium (£75/year): Priority support + unlimited submissions
Target: 725K individuals managing own taxes
B2B - Accounting Firms
£10/client/year for agency management tools
Target: 75,000-80,000 small/medium firms
Average 100 clients per firm = £1,000/year per firm
Revenue Growth Projection:
Strong Unit Economics:
| Metric | B2B (Firms) | B2C (Premium) |
|---|---|---|
| CAC | £300 (30% commission) | £100 |
| LTV (5 years) | £5,000 | £375 |
| LTV:CAC Ratio | 16.7:1 | 3.75:1 |
| Payback Period | 3.6 months | 1.3 years |
B2B LTV:CAC
16.7:1
Industry avg: 3-5:1
B2B Payback
3.6 mo
Industry avg: 12-18 mo
3-Year Revenue & Profitability:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | £127K | £509K | £1.018M |
| Costs | £80K | £195K | £345K |
| Net Profit | £47K | £314K | £673K |
| Net Margin | 37% | 62% | 66% |
Key Financial Highlights:
Profitable from Year 1
66% net margin by Year 3
Strong B2B unit economics (16.7:1 LTV:CAC)
Lean cost structure
Scalable with growing margins
"The only mobile-first, AI-powered MTD solution with the most competitive B2B pricing in the market"
Competitive Comparison Table:
| Feature | AATAX | Clear Books | untied | Major Players | Enterprise |
|---|---|---|---|---|---|
| B2C Price | FREE | FREE | £130/year | £192-708/year | N/A |
| B2B Price (full features) | £10/client | £30/client | £50-80/client | £100-300/client | £1,000+ |
| Mobile-First Design | |||||
| AI Chatbot Assistant | |||||
| AI Auto-coding | |||||
| Setup Time | 5 min | 30+ min | 15 min | 1-2 hours | Complex |
| MTD-Specialized | |||||
| Integrates with Xero/Sage | N/A | Limited | N/A | ||
| HMRC Recognized | Pending |
B2B Pricing Comparison (For 100-client firm):
AATAX: £1,000/year
Clear Books: £3,000/year (£2,000 more)
Major Players: £10,000-30,000/year
Key Differentiators:
1. Unbeatable B2B Economics
£10/client = 67% cheaper than nearest competitor
2. Only Mobile-First AI-Powered Solution
AI Chatbot for step-by-step guidance
3. MTD-Specialized, Not Adapted
Purpose-built for Income Tax compliance
4. Affordable Premium Experience (B2C)
£75/year = 60-87% cheaper than major players
Why Accounting Firms Choose AATAX:
Lowest cost per client in the market
(£10 vs £30-300)
Easy client onboarding
(5-minute setup)
Mobile-first = clients can use on-the-go
AI assistance = reduced support burden
NOW
PRE-LAUNCH
APR 2026
LAUNCH
2027
SCALE
2028
GROWTH
• Beta testing
• 2 partners
• Build SEO
• 1,000 users
• HMRC listing
• Deadline
• 100 firms
• 10K clients
• Expand sales
• Referral
• 400 firms
• 40K clients
• Market leader
• 800 firms
• 80K clients
Dual-Track Launch Strategy:
B2C (Individual Users - Faster to Acquire)
HMRC recommended software listing (free visibility)
Digital marketing (Google Ads, Facebook)
Content marketing & SEO
Referral program (30% discount first year)
B2B (Accounting Firms - Higher Value)
Commission-only direct sales team (3 → 3 → 6 people)
Firm-to-firm referral program (30% discount first year)
2 strategic partners secured (1,000 users at launch)
Industry events and webinars
Geographic Coverage:
Full UK from Day 1
National digital campaigns
Remote sales model
Product Development:
MVP Completion
60%
HMRC API Integration
60%
Core features in development
Working prototype with demo available
Sandbox testing after MVP completion
HMRC recognition process begins Q1 2026
Company Foundation:
UK company incorporated
Vietnam entity incorporated
Self-funded £20K (bootstrapped)
Lean operation with strong runway
Development Roadmap:
| Milestone | Target Date | Status |
|---|---|---|
| MVP 60% complete | Now | ✓ Done |
| MVP 100% complete | Q4 2025 | → In Progress |
| HMRC sandbox testing | Q1 2026 | Planned |
| HMRC recognition | Q1 2026 | Planned |
| Beta launch (2 partner firms) | Q1 2026 | Planned |
| Public launch | April 2026 | Planned |
Team in Place:
CEO / Co-founder
Head of AI / Co-founder
2 Engineers
Advisors:
AI Advisor
10+ years at Microsoft
AI specialist
Tax Advisor
Manulife UK's Tax Manager
Ex-PwC Senior Tax Consultant
10+ years UK senior tax advisor
Pipeline:
2 accounting firms interested (potential 1,000 users)
Beta program launching Q1 2026
Use of Seed Funding Will Accelerate:
Complete MVP and HMRC integration
Secure HMRC recognition
Launch beta with partner firms
Build sales/marketing for April 2026 launch
Target Market Recap
Total MTD: 2.9M
37% no software: 1.07M
B2B: 808K clients
B2C: 268K DIY
B2B: Accounting Firms
Primary EngineTarget: Firms with spreadsheet clients (37%)
Penetration Strategy:
| Y1: | 100 firms × 100 = 10K clients |
| Y2: | 400 firms × 100 = 40K clients |
| Y3: | 800 firms × 100 = 80K clients |
B2C: Individual Taxpayers
FreemiumTarget: DIY without software (37% of 725K = 268K)
Freemium Conversion (10%):
| Y1: | 3,625 free → 363 premium |
| Y2: | 14,500 free → 1,450 premium |
| Y3: | 29,000 free → 2,900 premium |
Detailed Year-by-Year Breakdown
B2B Revenue:
£100,000
4% of 240K non-software clients
B2C Revenue:
£27,188
4.5% of 80K DIY users
Total Revenue:
£127,188
Costs:
£80,000
B2B Revenue:
£400,000
11% of accumulated clients
B2C Revenue:
£108,750
7% of accumulated DIY
Total Revenue:
£508,750
Costs:
£195,000
B2B Revenue:
£800,000
10% of 808K total clients
B2C Revenue:
£217,500
11% of 268K total DIY
Total Revenue:
£1,017,500
Costs:
£345,000
Cost Structure
| Cost Item | Y1 | Y2 | Y3 |
|---|---|---|---|
| Engineering (3→7→15) | £50K | £75K | £125K |
| Sales Commission (30%) | £30K | £90K | £120K |
| Marketing | £0-10K | £30K | £75K |
| Infrastructure (AWS) | Free | Free | £25K |
| Total Costs | £80K | £195K | £345K |
Key Assumptions (Conservative)
B2B Assumptions:
B2C Assumptions:
Why Conservative?
Market Validation:
Founders & Key Team:
Canh Ho
Engineering Team:
2 Engineers
Full-stack development & HMRC API integration specialists
Team Growth Plan:
Y1
3 → 7 people
Adding 3 sales, 2 engineers
Y2
7 → 15 people
Scaling engineering & sales teams
Y3
15 → 35 people
Full departmental structure
Investment Terms:
Amount:
£200,000
Structure:
SAFE (Simple Agreement for Future Equity)
Valuation:
£1M pre-money
Equity:
20%
Runway:
18 months to profitability
Use of Funds:
Product Development: £80K (40%)
Complete MVP, HMRC API integration, sandbox testing, recognition
Sales & Marketing: £60K (30%)
Build commission-only sales team, digital marketing campaigns
Team Expansion: £40K (20%)
Additional engineering resources, operations support
Working Capital: £20K (10%)
Buffer for unexpected expenses, runway extension
Key Milestones with This Funding:
Q4 2025: MVP 100% complete
Q1 2026: HMRC recognition achieved
Q1 2026: Beta launch with 2 partner firms (1,000 users)
April 2026: Public launch aligned with regulatory deadline
Year 1: 100 firms, 10,000 clients, £127K revenue
Year 1: Achieve profitability (£47K net profit)
Why Now:
April 2026 deadline = forced market adoption
864,000 businesses must comply
First-mover advantage with AI-powered solution
Clear path to profitability in 12 months
"April 2026 will transform UK income tax compliance significantly. AATAX is building the AI-powered solution that makes this transition seamless for taxpayers and accountants alike. Join us on this journey."
CANH HO
CEO & Founder
canhhs91@gmail.com
PHONE
+44 7733 292926 (UK)
+84 988 202 767 (Vietnam)
WEBSITE
aatax.ai
linkedin.com/in/canhho
Company:
AATAX
London, UK
Danang, Vietnam
Status:
UK & Vietnam Incorporated
HMRC Recognition (In Progress)