Increasing Adoption Among Tax Advisory and Consulting Companies Drives UK Tax Software Market
Tax advisory companies are increasingly adopting tax software to automate repetitive tasks, reduce and streamline their processes, and improve overall transactional productivity. Tax advisory companies are leveraging tax software to offer their customers more comprehensive and timely service. These companies are highly demanding tax software to automate data entry and calculations, thereby reducing the time required to complete manual tasks. Numerous tax advisory and consulting companies in the UK have already adopted tax software to automatically manage tax calculations. Companies such as BDO; Avalara, Inc.; Alliotts LLP; RSM UK Group LLP; and Blick Rothenberg Limited are using tax software to automate the entire taxation process by reducing the likelihood of errors. These are partnered with numerous tax software development companies such as Sage Group Plc, Xero Ltd, Kashflow, Quickbooks, VT Software Limited, Freeagent, Dext, Autoentry, and IRIS Software Group Ltd to provide their clients with automated tax-related services. Tax advisory companies use tax software to provide up-to-date advice to their clients by reducing the risk of noncompliance penalties. Moreover, outsourcing tax software allows tax advisory and consulting companies to access cutting-edge technology and specialized expertise without investing in in-house development or maintenance of software. Outsourcing tax software supports tax advisory and consulting companies to reduce their upfront and ongoing software costs. Tax software is often integrated with other financial systems to allow seamless data transfer and collaboration between departments within an organization.
UK Tax Software Market: Industry Overview
The UK tax software market is segmented on the basis of component, tax type, and end user. Based on component, the UK tax software market is segmented into software and service. Based on tax type, the market is categorized into sales tax, income tax, corporate tax, and others. Based on end user, the market is bifurcated into individual and commercial. The commercial segment is further subsegmented by enterprise size into small, medium, and large enterprises. The commercial segment is further subsegmented by vertical, into BFSI, government, IT & telecom, healthcare, retail, and others.
Based on tax type, the UK tax software market has been segmented into sales tax, income tax, corporate tax, and others. The sales tax segment held the largest share of the UK tax software market. Sales tax software streamlines, automates, and integrates sales tax calculation, management, and reporting. It manages value-added tax, consumer use tax, and tax return filing. The software calculates sales tax rates precisely with advanced validation technology. in August 2023, Stripe announced the launch of Stripe Tax for platforms, enabling platforms using Stripe Connect to offer Stripe Tax as a service to their customers. Stripe Tax automatically calculates and collects the correct sales tax, VAT, and others across more than 40 countries. Due to the advanced features of the software, its demand is increasing. The software is cost-effective as there is no need to hire tax experts, saving business costs. These factors are anticipated to boost the UK tax software market growth during the forecast period.
The income tax segment is expected to grow with the highest CAGR over the forecast period. Earning individuals are supposed to pay taxes applicable to their income, and the state and federal/national authorities impose the limits. The government imposes income tax on income produced by organizations and individuals within its jurisdiction. As per the law, taxpayers should file an income tax return yearly to determine their tax duties. The collected tax is a source of income for the government. The collected amounts are used to pay government obligations, fund public services, and offer goods to citizens. Income tax is used for various services and programs, which include Social Security and Medicaid that provide health coverage. Business income taxes apply to partnerships, corporations, small businesses, and self-employed people. Income tax software is implemented to handle all the relevant tax data, which automates the filing process and gives efficient results.
UK Tax Software Market: Competitive Landscape and Key Developments
CloudTax Inc, SAP SE, Wealthsimple Technologies Inc, HRB Digital LLC, Intuit Inc, Wolters Kluwer NV, Thomson Reuters Corp, Xero Ltd, IRIS Software Group Ltd, Sage Group Plc, Tax Systems Limited, and THE ACCESS GROUP are among the key players profiled in the UK tax software market report. Several other major market players were also studied and analyzed during this market research study to get a holistic view of the market and its ecosystem. The UK tax software market forecast provides detailed market insights, which help the key players strategize their growth. As per company press releases, a few developments are mentioned below:
- In April 2024, HRB Digital LLC partnered with Domino’s to incentivize last-minute tax filers to finish returns by April 10, 2024. New clients who file in-person or virtually with an H&R Block tax pro by April 10th will receive US$10 in free food at Domino’s1. More than five million consumers switched to HRB Digital LLC in 2023 for its reliable tax filing products and services, all backed by the company’s 100% accuracy, maximum refund guarantees, and upfront, transparent pricing.2 Tax prep starts at US$89. (Source: HRB Digital LLC, Newsletter)
- In February 2022, Wealthsimple Technologies Inc launched NETFILE to improve Wealthsimple Tax. NETFILE supports customers in importing crypto transactions from more than 300 popular exchanges and wallets and automatically calculates gains and losses. (Source: Wealthsimple Technologies Inc, Press Release)