The UK tax software market was valued at US$ 611.3 million in 2019 and is projected to reach US$ 1,331.3 million by 2027; it is expected to grow at a CAGR of 10.5% from 2020 to 2027.
Digitalization has encouraged end-user companies in the UK to adopt advanced technologies for reducing manual efforts in business process by implementing automated process to achieve increase in productivity along with efficient business outcomes. The availability of internet and various platforms, such as desktop and smartphone, allow individuals to avoid visiting tax offices; they can file a tax return and make a tax payment remotely. The rise in adoption of tax software end users such as commercial enterprises and individuals is further attributed to their capability to reduce the manual efforts of computing tax. The software offerings allow 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 returns, which leads these software solutions to generate huge volumes 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 received by the authorized persons; thus, an electronic signature must be attached to the tax return data.
The tax software market is segmented on the basis of product type, tax type, end user, and industrial vertical. Based on the product type, software segment led the tax software market with a higher market share in 2019. Along with increasing digitalization, businesses of all sizes are focusing on adopting automated solutions to ease their business process. The advancements in applications of information, communication, and technology (ICT) sector are paving the way for effective businesses. Tax software helps all the organizations dynamically monitor business activities and delivers alerts while establishing tax duties. This software is highly in demand owing to the evolving tax and accounting laws in various countries in the world. Enterprises of all sizes require sophisticated systems to follow the current tax filing procedures. Various companies across are focusing on providing advanced automated software to their end users. For instance, Avalara, Inc., one of the prominent players in the market, offers tax software that allows companies to manage various types of tax returns, such as VAT and GST.
The tax software market operates in a highly fragmented and competitive marketplace. As leading companies in this market continue to broaden their addressable market by expanding their current offerings and diversifying their client base, all the prominent players face high competition, both from start-ups and established companies. The key companies profiled in the tax software market include Acorah Software Products Limited (TAXCALC), Andica Limited, BTC Software Limited, Gosimpletax Ltd., IRIS Software Group Ltd, Taxfiler Limited, Capium, FreeAgent, Nomisma, Sage Group Plc, Thomson Reuters, Wolters Kluwer, and Xero Limited. Several other players are also functioning in the market worldwide, contributing significant revenue shares year-on-year.
The overall UK tax software market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining overview and forecast for the UK tax software market with regard to all the segments. Also, primary interviews have been conducted with industry participants and commentators to validate data well as to gain more analytical insights into the topic. The participants typically associated with this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the UK tax software market.