The tax software can be incorporated with various other software, such as customer relationship management (CRM), enterprise resource planning (ERP), and reporting applications. Tax software solutions offer real-time business visibility through its easy to create reports features. Wide-ranging tax reporting and analysis across several businesses are increasing swiftly. To manage all the tax-related reports, organizations are increasingly embracing tax software. Due to the growing demand for cloud-based technology in various industries, they are widely adopting cloud-based tax software because it mitigates the time to process and is also a cost-effective software.
FREEAGENT, GOSIMPLETAX LTD., NOMISMA, SAGE GROUP PLC, AND XERO LIMITED. –PROMINENT MARKET PARTICIPANTS IN UK TAX SOFTWARE MARKET
Since the advent of digitalization in the UK, end user companies are adopting advanced technologies for reducing manual business process and implementing automated process for increasing productivity and achieving efficient business outcomes. Owing to the internet and various platforms, such as desktop and smartphone, there is no need for individuals to visit a tax office; they can file a tax return and make a tax payment remotely. End users such as commercial enterprises and individuals are adopting tax software, as it automates tax processes and reduces the manual efforts of computing tax. The software allows registering the information of the taxpayer, and it is then automatically entered into tax returns; it also enables automatic calculation. Various industries use tax software for filing and returns, and they also generate a huge volume of data. In such cases, the industries have to be cautious while transferring tax-related files online. Therefore, tax software vendors provide software with security measures. The data sent by the organizations is encrypted with Secure Socket Layer (SSL) to ensure that the transmitted data is created by the person himself/herself and is attested by an electronic signature to the data of a tax return.
Increasing digitization across the tax systems and growing adoption from the retail sector are among the factors contributing to the growth of the UK tax software market. Further, growing tax industry and favorable support from the UK government will provide lucrative opportunities for the growth of the tax software market in the UK. Increasing focus of organizations in enhancing business processes through integrating advanced technologies acts as a trend for the growth of the market.
The UK tax software market is segmented on the basis of component, tax type, deployment type, end user, enterprise size, and industry vertical. Based on component, the market is bifurcated into software and services. Based on tax type, the market is segmented into sales tax, income tax, corporate tax, and others. Based on deployment type, the UK tax software market is bifurcated into on-premise and cloud. Based on enterprise size, the UK tax software market is segmented into small enterprises, medium enterprises, and large enterprises. Based on end user, the market is divided into commercial and individual. Based on industry vertical, the UK tax software market is segmented into BFSI, government, IT & telecom, healthcare, retail, and others.
The top ten companies profiled in the UK tax software market are Acorah Software Products Limited (TAXCALC), BTCSoftware Limited, Capium, FreeAgent, GoSimpleTax Ltd., IRIS Software Group Ltd, Nomisma, Sage Group Plc, Thomson Reuters, and Xero Limited. The above listing of key players is derived by considering multiple factors such as overall market insights, dynamic trends, revenue, current tax software portfolio, new product launches, market initiatives, investment in technology up-gradation, mergers & acquisitions, and other joint activities. A few of the important market initiatives and product developments from the industry are mentioned below:
| Year | News | Country |
| 2022 | Sage, leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses, has launched a series of new tools to help accountants support the 4.2 million sole traders and landlords impacted by one of the UK’s biggest tax changes. Businesses and propertyowners will need to make records and income tax self-assessment submissions digital using compatible software. | Europe |
| 2022 | Xero has launched its Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) beta. By empowering advisors to digitize tax, Xero enable them to comply with the government’s new reporting regulations while also progressing their digital journey. | Europe |
| 2021 | GoSimpleTax launched GoSimpleTax invoicing as a part of an ambitious growth strategy. GoSimpleTax Invoicing, is fully integrated with PayPal and Sum Up, as well as being compatible with external email systems, to enable users to issue invoices directly from personal accounts. | Europe |
