The UK tax software market size is projected to grow from US$ 1,180.13 million in 2022 to US$ 2,038.45 million by 2028; the UK tax software market is estimated to grow at a CAGR of 9.5% from 2022 to 2028.
Since the advent of digitalization in the UK, businesses are adopting advanced technologies for reducing human involvement in processes and increasing productivity and achieving efficient business outcomes through automated processes. Internet connectivity, and devices such as desktops and smartphones allow individuals to manage their tax liabilities without visiting a tax office in person, as 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 taxpayer information fed into the software is automatically entered into tax returns, and the software also enables automatic calculations. This has enhanced the growth of the UK tax software market. Various industries use tax software for filing and returns, which results in the generation of huge data volumes. In such cases, 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 authorized person and is attested by an electronic signature to the data of a tax return. All these factors contributed to the growth of UK tax software market growth.
The accountancy sector plays a significant role in the UK tax software market growth. The business of this sector is resiliently backed by long-term investments into the profession, coupled with the availability of high-quality talent. Many largest global firms have their footprints in London, along with additional offices present across the UK. Their presence makes the UK an ideal location for firms from diversified sectors to seek financial expertise, which will further flourish the growth of the UK tax software market.
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UK Tax Software Market: Strategic Insights
Market Size Value in US$ 1,180.13 million in 2022 Market Size Value by US$ 2,038.45 million by 2028 Growth rate CAGR of 9.5% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2028
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UK Tax Software Market: Strategic Insights
| Market Size Value in | US$ 1,180.13 million in 2022 |
| Market Size Value by | US$ 2,038.45 million by 2028 |
| Growth rate | CAGR of 9.5% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2028 |
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Impact of COVID-19 Pandemic on UK Tax Software Market Growth
The COVID-19 pandemic has accelerated digital adoption and digital service delivery across the world. It impacted business activities of the tax industry in the UK in 2020. Owing to the UK government's stay-at-home order in the first quarter of 2020, the number of remote workers increased in the country. Hence, businesses are adopting advanced systems to access financial records. Several companies are now shifting from office-based financial management processes to tax preparation and online accounting software to provide users secure remote access to financial reports. Advanced accounting software and professional services help organize business processes and make tax preparation less arduous. This aspect is likely to increase UK tax software market growth in the coming years.
Market Insights – UK Tax Software Market
Integration of Advanced Technologies to Lead to Beneficial Trends in UK Tax Software Market in Coming Years
The accountancy sector in the UK is growing at a fast pace, thereby increasing the need for advanced technologies to streamline tax processes. The entire accountancy industry is witnessing the emergence of cloud computing and automation amid the digital revolution. Cloud accountancy has widely transformed how accountants work regularly and communicate with their customers. Cloud-based solutions enable accountants to run accounting tasks from any location. According to Xero Corporation, accounting firms using cloud accounting have reported ~15% growth in their year-over-year revenues. Also, the accounting practices using cloud accounting have managed to gather and serve five times more customers than those who don't use this process. The accountancy industry in the UK is performing strongly due to long-term investments and a sustained ability to attract high-quality talent, leading to one of the highest concentrations of accountancy professionals. Many of the largest global firms are headquartered in London and have offices across the UK. Thus, integration of advanced technologies is emerging as a significant trend in the UK tax software market in coming years.
Industry Vertical-Based UK Tax Software Market Insights
Based on industry vertical, the UK tax software market is segmented into BFSI, government, IT & telecom, healthcare, retail, and others. BFSI is among the most significant revenue-generating verticals in the UK. It comprises commercial banks, insurance companies, nonbanking financial companies, pension funds, and mutual funds, which together generate a huge volume of data. Major factors boosting the demand for tax software in the BFSI sector are the growth in the adoption of electronic accounting and rise in investments through digital solutions. Avalara, Sage, and CCH Incorporated are a few companies that provide tax automation software for the BFSI industry, which helps them enhance their business outcomes and prevent future financial losses. All these factors contributed to the growth of BFSI sector in the UK tax software market.
Players operating in the UK tax software market mainly adopt inorganic growth strategies to stay competitive in the market ecosystem.
- In February 2022, Capium entered into a strategic partnership with outsourcing champion Initor Global UK. Initor Global UK (IG UK) is an established global outsourcing accounting company that specializes in providing accountants across the UK with a full range of outsourcing services that include bookkeeping, tax management, payroll and company secretarial work. Together, the partnership aims to help the accountant with solutions that will help to manage workload and save time.
- In September 2022, FreeAgent, the innovative cloud accounting provider, unveiled a brand new software solution that is specifically designed to help landlords and their accountants comply with the next phase of the UK’s new digital tax legislation. FreeAgent for Landlords is a bespoke new version of FreeAgent’s award-winning cloud accounting system that has been created for individuals who earn income from their properties. Through the software, landlords will be able to keep digital records of their property income and costs, along with performing tax submissions required under the government’s upcoming MTD for Income Tax Self-Assessment (MTD for ITSA) legislation.
Company Profiled:
- Acorah Software Products Limited
- BTCSoftware Limited (Bright Software Group)
- Capium Ltd.
- FreeAgent
- GoSimpleTax Ltd
- IRIS Software Group Ltd
- Nomisma
- The Sage Group plc
- Thomson Reuters Corporation
- Xero Limited
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Tax Type, Deployment Type, End User, Enterprise Size, Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The retail sector in the UK has experienced a tremendous transformation with the growing trend of online shopping, which has emerged as a major disrupter. The continuous introduction of various advanced technological solutions helps retailers increase their efficiency. Companies in the tax software market players catering to this sector maintain an enormous quantity of sensitive data that varies from financial statements, invoices, legal contracts, and e-mails to receipts.
Accountancy firms are adopting the software for handling invoicing & billing, payroll, reporting, and bookkeeping. The accountancy profession contributes significantly to the UK economy via specialist accounting practices and in-house accountants existing in all industries. Moreover, the accounting and legal firms are pivotal to the country's financial and professional services ecosystem, thereby anticipated to boost the market growth in the upcoming years.
The large enterprises segment dominated the market in 2021 and is expected to hold significant share during the forecast period. Large enterprise continues to demand for real-time global data that informs them of tax payment-related obligations, risks, and opportunities. Moreover, companies providing tax software mare responding to these demands by providing platforms that aims at collecting of data from both unstructured and structured sources, thereby becoming major factors driving the market growth.
The accountancy sector in the UK is growing at a fast pace, thereby increasing the need for advanced technologies to streamline tax processes. The entire accountancy industry is witnessing the emergence of cloud computing and automation amid the digital revolution. Cloud accountancy has widely transformed how accountants work regularly and communicate with their customers. Cloud-based solutions enable accountants to run accounting tasks from any location, thereby becoming major trend in the UK tax software market during the forecast period.
Acorah Software Products Limited (TAXCALC), BTCSoftware Limited, Capium, FreeAgent, GoSimpleTax Ltd., IRIS Software Group Ltd, Nomisma, Sage Group Plc, Thomson Reuters, and Xero Limited are the leading companies in the UK tax software market.
The List of Companies - UK Tax Software Market
- Acorah Software Products Limited (TAXCALC)
- BTCSoftware Limited
- Capium
- FreeAgent
- GoSimpleTax Ltd.
- IRIS Software Group Ltd
- Nomisma
- Sage Group Plc
- Thomson Reuters
- Xero Limited
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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