Confidential — prepared for banking and investment purposes — June 2026

Business Plan · June 2026

£arnd
Said. Sorted. Earnd.

The accounting and tax compliance platform built for UK sole traders and growing businesses — from a £9 invoicing tool to a full limited company accounts service, all from your phone.

Business type

Sole Trader (incorporating to Ltd)

Sector

FinTech / SaaS / Accounting Software

Stage

Pre-revenue · Prototype complete

Target market

3.2 million UK sole traders + Ltd companies

Plans from

£9/month to £250+/month (9 tiers)

Section 01

Executive Summary

£arnd is a mobile-first accounting and tax compliance platform spanning nine subscription tiers — from a £9/month invoicing tool for new sole traders to a £250+/month full service for incorporated limited companies. Every tier is designed for people who run businesses from a phone, not a desktop.

The UK has 3.2 million sole traders and a further 2+ million small limited companies. As of 6 April 2026, Making Tax Digital for Income Tax (MTD ITSA) became legally mandatory for sole traders earning over £50,000, with the threshold falling to £30,000 in 2027 and £20,000 in 2028. This legislative forcing event affects over 4.2 million businesses before the end of the decade and mandates the use of HMRC-approved software.

Existing tools — Xero, QuickBooks, Sage, FreeAgent — are built for accountants and office workers. None are built for the tradesperson on a building site, the franchisee reporting to a head office, or the small Ltd company director who does not want to pay a full-service accountant for tasks software can handle. When true all-in costs are calculated, these tools cost sole trader tradespeople between £1,514 and £2,234 per year. £arnd's equivalent Plus tier costs £588 per year all-in, while recovering an estimated £1,621 in additional tax savings through trade-specific expense prompting.

3.2m
UK sole traders
Primary target market
4.2m
MTD-mandated by 2028
Legislated demand
9
Subscription tiers
£9/mo to £250+/mo
£9
Entry point
Core invoicing tier
£961+
Net annual benefit
vs true competitor cost
£0
Effective cost
With earnr referrals

The business model is subscription SaaS with a referral and earnr scheme that creates self-funding, word-of-mouth acquisition. A prototype is complete. An app developer has been identified and is providing a quote. Initial development is budgeted at £10,000 as a working figure, with total startup investment estimated at £23,500. The business projects monthly breakeven at approximately 220–250 subscribers, achievable within 8–9 months of launch, with Year 1 revenue of approximately £83,000 rising to £655,000 by Year 3.

Section 02

The Problem & Solution

A plasterer finishing a job at 5pm has no interest in opening a laptop to raise an invoice. A franchisee doesn't want to pay £80/hour for an accountant to prepare a monthly report their head office needs. A small Ltd company director shouldn't need to spend thousands annually on compliance that software can handle. None of the existing tools were built with any of these people in mind.

The problem

Wrong tool, wrong person

Xero, Sage and QuickBooks use accountant language, require desktop computers, and take 3–5 minutes to raise a single invoice. Tradespeople abandon them within weeks. Records go unkept. Compliance fails.

Hidden true cost

Advertised prices never tell the full story. A sole trader on Xero Grow still needs an accountant for Self Assessment, MTD quarterly submissions, and bookkeeping prep — pushing the real annual cost past £2,200.

Unclaimed tax savings

Most tradespeople fail to claim mileage, home office, tools, and phone costs consistently. The difference between a well-managed claim and a typical one is £2,000–£5,000 in unclaimed deductions annually.

MTD is now law

Making Tax Digital is mandatory from April 2026. Spreadsheets no longer qualify. Over 864,000 sole traders need compliant software today — rising to 4.2 million by 2028. The market is being forced to change by legislation.

The £arnd solution

One platform, nine tiers. £arnd meets every customer exactly where they are — from the new sole trader who just needs to invoice, to the franchisee reporting to head office, to the Ltd company director who wants full accounts handled without a traditional accountancy firm.

LivePay

Tap-to-pay card collection at the point of job completion. Eliminates the late payment cycle from the Pro tier upwards.

AI quote builder

AI-powered quote generation on the Pro tier. Reduces the time between enquiry and accepted job.

Full Ltd accounts

Corporation tax, Companies House confirmations, and incorporated company reporting available on Ltd tiers — without a traditional accountant.

Section 03

Market Opportunity

£arnd addresses three distinct but overlapping markets: sole trader tradespeople, franchisees, and small limited companies. The MTD legislation creates a legislated entry point across all three.

4.38m
Self-employed in UK
ONS Q4 2025
3.2m
Sole traders
56% of all UK businesses
748k
Construction sector
Largest sole trader industry
2m+
Small Ltd companies
Secondary target market
50,000+
Franchise units
1,009 franchise systems
+5%
Sole trader growth
138,900 new in 2024–25

The MTD forcing event

PhaseDateThresholdAffectedCumulative
Phase 1 — Active nowApril 2026£50,000+864,000864,000
Phase 2April 2027£30,000+~870,000 more~1.73m
Phase 3April 2028£20,000+~990,000 more~2.72m
Ultimate scopePost 2028All self-employed~1.5m more~4.2m

The franchise opportunity

The UK franchise sector comprises 1,009 franchise systems and over 50,000 franchise units, contributing £19.1bn annually to the economy. £arnd's Sole Franchise (£75/mo) and Ltd Franchise (£150/mo) plans provide automated monthly reporting to franchise head offices — solving a pain point no other accounting tool addresses. A single franchisor agreement can unlock hundreds of subscriber relationships simultaneously.

The Ltd company opportunity

There are over 2 million small limited companies in the UK. Many pay £1,500–£4,000 per year for traditional accountancy services for straightforward compliance work — corporation tax filing, Companies House confirmations, and annual accounts. £arnd's Ltd tiers (£150–£250+/month) offer this service at a fraction of the cost, with the same mobile-first, no-jargon experience as the sole trader tiers.

Section 04

Product & Pricing

Nine tiers across two product families — sole trader and limited company — covering every stage of a business's growth. A customer can start on Core at £9/month and grow with £arnd all the way to a fully incorporated Ltd company without ever changing platform.

The full tier structure

Sole trader & self-employed — all tiers below
Core
Core
Entry-level invoicing
£9
/month
Invoicing (generated, branded "powered by £arnd") · Referral scheme access · Basic income record
New sole traders, those below MTD threshold wanting simple invoicing. Gateway to the £arnd ecosystem.
Plus
Plus
Full compliance tier
£49
/month
Everything in Core, plus: MTD ITSA quarterly submissions (×4/year) · Annual Self Assessment tax return · Tax pot (auto ringfencing) · VAT threshold tracker · GPS mileage tracker · Efficiency dashboard
VAT-registered sole traders needing full MTD compliance and Self Assessment without a separate accountant.
Pro
Pro
Full trade platform
£59
/month
Everything in Plus, plus: LivePay (doorstep card collection) · AI-powered quote builder · Open jobs tracker · VAT return submission · Personalised branded invoices · Receipt capture and allocation
Established tradespeople wanting the full platform: faster quotes, instant payment, VAT returns handled.
Partner
Partner
Multi-partner businesses
£59
/month + £20/partner
Everything in Pro for the lead partner, plus: individual Self Assessment tax returns for each named partner · Multi-partner income allocation · Shared job and expense tracking
Business partnerships and multi-trader arrangements where partners need individual tax returns filed.
Franchise
Sole Franchise
Self-employed franchisees
£75
/month
Everything in Pro, plus: automated monthly financial summary report sent to nominated franchise head office · Turnover, expense ratio, VAT status, target vs actual performance reporting · Franchisor network discount available (£65/mo with qualifying network deal)
Self-employed franchisees required to report monthly to a franchisor. Any sector — cleaning, trades, home services, food.
Limited company — incorporated business tiers
Ltd Franchise
Ltd Franchise
Incorporated franchisees
£150
/month
Everything in Sole Franchise, plus: Limited company corporation tax return · Companies House confirmation statement · Directors' Self Assessment · Incorporated company statutory reporting · Monthly franchise head office report
Franchisees who have incorporated their business and need both Ltd company compliance and franchise reporting handled.
Ltd Essential
Ltd Essential
Turnover under £150k
£150
/month
Everything in Ltd Franchise (without franchise reporting), available to small Ltd companies: Corporation tax return · Companies House confirmation statement · Directors' Self Assessment · Annual accounts · VAT returns · Full bookkeeping
Small Ltd companies with turnover under £150,000 wanting full accounts handled without a traditional accountancy firm.
Ltd Plus
Ltd Plus
Turnover £150k–£250k
£200
/month
Everything in Ltd Essential, scaled for higher turnover: Full bookkeeping and reconciliation at increased transaction volume · Payroll support · Advanced VAT accounting · Priority support
Growing Ltd companies with turnover between £150,000 and £250,000 outgrowing simpler tools.
Ltd Pro
Ltd Pro
Turnover over £250k
POA
£250+/month
Bespoke service for Ltd companies with turnover exceeding £250,000. Full accounts, payroll, VAT, corporation tax, and dedicated account management. Priced on application following a free consultation.
Established Ltd companies with complex reporting needs wanting a fixed-fee alternative to a traditional firm.

The referral and earnr scheme

The referral scheme applies to all sole trader tiers and creates a self-funding acquisition engine:

The Core tier as a growth engine: At £9/month with "powered by £arnd" on every invoice, Core acts as both a revenue line and a permanent marketing channel. Every invoice sent by a Core subscriber is seen by the recipient — a potential future subscriber. This creates passive brand awareness at scale with zero additional marketing spend.

Section 05

Competitive Analysis

The market is served by well-funded incumbents. None have built for tradespeople. None offer voice invoicing. None have a referral income scheme. And none serve the full journey from sole trader invoicing to limited company accounts on a single platform.

True annual cost — sole trader tradesperson

Based on a CIS subcontractor earning ~£45k, driving 8,000 miles, VAT-registered, working partly from home. True cost includes software, accountant fees required on top, and essential add-ons.

ProviderTrue annual costTax savings enabledNet annual benefitDesktop needed
Xero (Grow + accountant)£2,234~£800−£1,434Yes — primary
QuickBooks (Simple Start + acct)£1,718~£820−£898Mostly
Sage (Standard + accountant)£1,898~£810−£1,088Yes — primary
FreeAgent (paid + accountant)£1,598~£830−£768Yes — primary
Crunch (ST Pro + CIS add-on)£702~£765+£63Mostly
£arnd Plus (£49/mo all-in)£588~£1,621+£1,033Never

Updated comparison: With the revised Plus tier at £49/month (£588/year all-in including MTD and Self Assessment), £arnd is now £114/year cheaper than Crunch — even before accounting for Crunch's £258/year CIS add-on for construction workers. A tradesperson with CIS work pays £702/year for Crunch versus £588/year for £arnd Plus. The net annual benefit gap is now £970 in £arnd's favour.

Key differentiators — features no competitor offers

Core at £9/month

The lowest-cost entry point in the market for a sole trader invoicing tool with a built-in referral scheme. "Powered by £arnd" on every invoice creates passive marketing.

Full-journey platform

No competitor covers sole trader invoicing through to Ltd company accounts on one platform. £arnd grows with the customer.

Franchise reporting

Automated monthly franchise head office reports. No accounting tool in the market offers this. A single franchisor deal unlocks hundreds of subscribers.

Section 06

Financial Projections

Conservative projections based on the updated nine-tier pricing structure. The wider tier spread — from £9/month Core to £250+/month Ltd Pro — means the blended average revenue per user grows naturally as the subscriber base matures and upgrading customers move up the ladder.

Development cost note: An app developer has been identified. Initial development is budgeted at £10,000 as a working figure pending the developer quote. This is the single most variable figure in these projections. The business plan will be updated when the quote is confirmed.

Subscriber and revenue assumptions

AssumptionYear 1Year 2Year 3
New subscribers/month (base)3060100
Earnr word-of-mouth multiplier+3%+5%+8%
Total subscribers at year end~420~1,200~2,800
Tier mix (Core / Plus / Pro / Pro+ / Ltd)35% / 30% / 20% / 10% / 5%30% / 28% / 22% / 12% / 8%25% / 25% / 25% / 15% / 10%
Blended avg monthly revenue per user~£36~£42~£52

Revenue and profitability

ItemYear 1Year 2Year 3
Annual gross revenue~£90,720~£302,400~£873,600
Referral / earnr commission (~8%)~£7,260~£24,190~£69,890
Net revenue after commission~£83,460~£278,210~£803,710
Cloud infrastructure£3,600£6,000£12,000
HMRC API / MTD integration£2,400£3,600£4,800
Customer support / tax filing staff£8,400£24,000£48,000
Marketing and acquisition£12,000£18,000£24,000
Legal, compliance, accounting£4,800£7,200£9,600
Miscellaneous / contingency£3,600£4,800£6,000
Total operating costs£34,800£63,600£104,400
Operating profit / (loss)+£48,660+£214,610+£699,310

Startup investment

ItemBudgetNotes
App development (iOS + Android)£10,000Working figure — developer quote pending
HMRC MTD API registration and integration£2,500One-off registration plus build
Branding, design, and domain£1,500Logo, brand assets, earnd.uk
Legal — T&Cs, NDA, company formation£1,500Solicitor review of existing documentation
Launch marketing campaign£3,000Social, trades forums, Google Ads
Working capital — first 3 months£5,000Pre-revenue operational runway
Total initial investment£23,500Subject to developer quote

Breakeven: Monthly operating breakeven at approximately 220–250 subscribers (blended ~£36/user). At 30 new subscribers/month, breakeven falls at approximately month 8–9 of trading. The full £23,500 startup investment is projected to be recovered within Year 1.

Section 07

Go-to-Market Strategy

The Core tier at £9/month is the entry point for a deliberate funnel strategy. Acquire at low friction, demonstrate value, upgrade naturally. Every "powered by £arnd" invoice is passive advertising to the recipient.

Phase 1 — Months 1–3

Seed with Core

Launch the Core tier first at £9/month to minimise adoption friction. Target 50 paying subscribers through personal network, trades forums, and social media (Instagram, TikTok, Facebook trades groups). Every invoice sent by a Core subscriber carries "powered by £arnd" — creating passive brand awareness with zero additional spend. Target: 50 subscribers by month 3.

Phase 2 — Months 4–6

MTD urgency + earnr launch

Run targeted campaigns aimed at sole traders searching for MTD compliant software, CIS accounting, and sole trader tax returns. Position the Plus tier (£49/mo) against Xero and QuickBooks on true annual cost. Activate the earnr scheme — reward early adopters for bringing trades contacts in. Target: 200 paying subscribers by end of month 6.

Phase 3 — Months 7–12

Franchise channel

Approach 5–10 franchise networks in trades and home services. A single franchisor network agreement can generate 50–200 subscribers from one deal. Begin trade body relationships (FMB, NICEIC, Gas Safe). Target: 400+ paying subscribers by end of year 1.

Phase 4 — Year 2+

Ltd tier launch + earnr scale

Roll out Ltd Essential, Ltd Plus, and Ltd Pro to the existing subscriber base and their networks. Sole traders who incorporate naturally upgrade to Ltd tiers — zero acquisition cost. The earnr network by year 2 (400+ subscribers each incentivised to refer) becomes the primary acquisition channel. Explore accountant partner programme.

Section 08

The Team

£arnd is currently founder-led at the pre-revenue prototype stage. The founding insight is grounded in direct experience of the gap between what accounting software offers and what working people actually need.

App developer (contracted)

[Developer / agency — TBC] — Developer identified, quote pending. Will build the production iOS and Android apps from the existing prototype on a fixed-price contract protected by a signed NDA. Initial budget: £10,000.

Planned hires — 12–24 month roadmap

Customer success (month 6)

Part-time support and onboarding. Trades background preferred. Handles subscriber retention, support, and field feedback.

Tax / compliance lead (month 9)

Qualified accountant or tax adviser overseeing Self Assessment and MTD filing for Plus tier and above subscribers, and platform HMRC compliance.

Commercial / partnerships (year 2)

Business development for franchise network agreements and trade body partnerships. Commission-based initially.

Section 09

Risk & Mitigation

A candid assessment of the principal risks to the business, rated by severity.

High
App development cost overrun or delay

Development exceeds the £10,000 working budget or the timeline slips, delaying revenue generation.

Mitigation

Fixed-price contract with developer. NDA in place. Prototype complete, reducing specification ambiguity. Working capital covers 3 months pre-revenue. Development quote confirmed before significant spend committed.

High
HMRC MTD API changes

HMRC modifies the MTD ITSA API specification, requiring rework of the compliance integration.

Mitigation

HMRC publishes API changes with advance notice. Developer contract includes API maintenance provisions. MTD ITSA is now live — the Phase 1 API is stable. Phased threshold changes give advance warning for each expansion wave.

Medium
Incumbent competitor response

Xero, QuickBooks or Sage launches a trades-specific product or voice invoicing capability.

Mitigation

Incumbents face structural barriers to rebuilding for a single vertical without alienating accountant-partner channels. Voice invoicing, the earnr network, and the nine-tier ladder create first-mover switching costs. Speed to market is critical.

Medium
Tax filing liability on Plus/Ltd tiers

Errors in Self Assessment or corporation tax returns filed on behalf of subscribers create liability exposure.

Mitigation

Professional indemnity insurance in place before launching Plus and Ltd tiers. Qualified accountant or tax adviser hired to oversee all filings. T&Cs clearly define subscriber responsibility for accuracy of information provided. Phased tier rollout allows quality processes to be established before scaling.

Medium
FCA regulatory requirements

Doorstep card collection (LivePay) or tax pot features require FCA authorisation, adding compliance cost and delay.

Mitigation

Card payment processed via regulated third-party provider — not £arnd directly. Tax pot is a ringfencing tool, not deposit-taking. Legal review of both features included in startup budget. FCA Appointed Representative status available as fallback.

Low
Slow initial adoption

Tradespeople are slow to change habits; growth is lower than projected in year 1.

Mitigation

MTD compliance is mandated — demand is legislated, not discretionary. The Core tier at £9/month removes price resistance entirely. The earnr scheme rewards early adopters for acceleration. "Powered by £arnd" invoices create passive brand awareness without marketing spend.

Section 10

The Ask

£arnd is seeking a business current account facility and initial working capital to take the product from working prototype to market. This is a pre-revenue business with a documented path to positive cash flow within 8–9 months of launch.

Use of funds

One-off startup costs
App development (iOS + Android)£10,000
HMRC MTD API integration£2,500
Branding and design£1,500
Legal review and company formation£1,500
Launch marketing campaign£3,000
Subtotal£18,500
Working capital (first 3 months)
Cloud infrastructure£900
Customer support resource£2,100
Ongoing marketing£1,500
Legal and compliance£500
Subtotal£5,000

Total initial funding requirement: £23,500 — subject to revision when the developer quote is confirmed. This figure will be updated in a subsequent version of this document.

The investment case

Milestone timeline

MilestoneTarget dateStatus
Developer quote confirmedJune 2026In progress
Business account openedJune / July 2026This application
App build commencesJuly 2026Subject to funding
Beta launch — 30 subscribersSeptember 2026Closed beta, known tradespeople
Public launch — Core + Plus tiersOctober 2026Full MTD campaign
Pro and Partner tiers liveJanuary 2027Post-beta validation
Monthly operating breakevenJune–July 2027~220 subscribers
Ltd tier launchQ3 2027Following sole trader validation
Full startup cost recoveryDecember 2027Based on Year 1 projections

Said. Sorted. Earnd. — £arnd exists because millions of UK sole traders, franchisees, and small business owners deserve accounting software that works the way they do. The market is large, the timing is legislated, the product ladder is complete, and the numbers work. We are ready to build.

£arnd
CONFIDENTIAL BUSINESS PLAN · VERSION 2 · JUNE 2026 · FOR BANKING AND INVESTMENT PURPOSES ONLY
EARND LTD (INCORPORATING) · SUFFOLK, UK · EARND.UK · SUPPORT@EARND.UK
FIGURES ARE PROJECTIONS BASED ON WORKING ASSUMPTIONS · SUBJECT TO REVISION ON RECEIPT OF DEVELOPER QUOTES

Summary Market Product Financials The Ask