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 market is estimated to register at a CAGR of 9.5% from 2022 to 2028.

An increase in the digitization of tax systems and a continued demand from the retail sector drive the growth of the UK tax software market.

Startups and international enterprises are expanding their presence across the UK owing to a well-established economic structure. SMEs and other established enterprises in the country adopt tax software to address tax compliance. Owing to the booming economy, high literacy rate, and advanced technology adoption, the number of tech giants is rising in the country. Tech giants providing digital services to cater to the demand across the UK and the world are subjected to pay 3% tax on digital services. The UK government took the initiative named Making Tax Digital with a vision for the “end of the tax return” and to have a “transformed tax system” by 2020. The HM Revenue and Customs (HMRC) affirm that the foremost goal of MTD initiative is to make tax administration efficient, effective, and convenient for taxpayers. Also, MTD for VAT is a key change in tax administration and vital for the UK tax system. Therefore, the digital services tax has succeeded in raising more tax from some big digital companies, which propelled the UK tax software market growth. Sage Business Cloud Accounting, Xero, FreeAgent, GoSimpleTax, and TaxCalc are among the most commonly used tax software solutions across the UK.

On the basis of tax type, the UK tax software market has been segmented into sales tax, income tax, corporate tax, and others. The sales tax segment led the UK tax software market with a larger market share in 2021. Sales tax software streamlines, automates, and integrates operations such as tax calculation, management, and reporting. The software meant for this tax type features abilities such as value-added tax, consumer use tax management, and tax return filing. The software finds and calculates sales tax rates precisely using advanced validation technology. With technological advancements, various countries have begun to file returns and pay taxes electronically with the help of sales tax software. Some states in the UK accept credit cards for tax payments. Companies selling their products focus on managing sales tax; hence, they are implementing solutions such as sales tax software to automate the steps of a tax process, such as calculating returns and filing the tax.

Based on deployment type, the UK tax software market is bifurcated into on-premise and cloud. Tax software is used by various industries such as BFSI, retail, and government. These industries have huge number of customers, which, in turn, results in huge data generation. As a result, these businesses need effective solutions to handle such huge data volumes. To overcome storage problems faced when storing data locally, businesses prefer cloud-based storage systems. Small enterprises widely prefer cloud deployment, as it does not require an implementation cost. Thus, companies that are planning to make significant investments in tax software are expected to shift toward modern platforms by adopting cloud-based solutions.

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 UK tax software market is bifurcated into software and services. The UK tax software market, by tax type, is segmented into sales tax, income tax, corporate tax, and others. Based on deployment type, the UK tax software market is bifurcated into cloud and on-premises. In terms of enterprise size, the UK tax software market is segmented into small enterprises, medium enterprises, and large enterprises. Based on end user, the UK tax software market is segmented into individual, and commercial. The UK tax software market, by industry vertical, is segmented into BFSI, government, IT and telecom, healthcare, retail, and others.

The overall UK tax software market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the UK tax software market. The process helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs; business development managers; market intelligence managers; national sales managers; and external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the UK tax software market growth.

TABLE OF CONTENTS

1. Introduction
1.1 Study Scope
1.2 The Insight Partners Research Report Guidance
1.3 Market Segmentation
2. Key Takeaways
3. Research Methodology
3.1 Coverage
3.2 Secondary Research
3.3 Primary Research
4. Tax Software Market Landscape
4.1 Market Overview
4.2 PEST Analysis
4.2.1 UK
4.3 Ecosystem Analysis
4.4 Expert Opinion
5. Tax Software–Market Dynamics
5.1 Market Drivers
5.1.1 Increase in Digitization of Tax Systems
5.1.2 Continued Demand from Retail Sector
5.2 Market Restraints
5.2.1 Reluctance to Adoption of Tax Software due to Cost and Operational Complexities
5.3 Market Opportunities
5.3.1 Government Support for Digitalization of Tax System
5.3.2 Flourishment of Tax Industry
5.4 Future Trends
5.4.1 Integration of Advanced Technologies
5.5 Impact Analysis of Drivers and Restraints
6. Tax Software Market – UK Analysis
6.1 Tax Software Market UK Overview
6.2 UK Tax Software Market – Revenue and Forecast to 2028 (US$ Million)
6.3 Market Positioning – Five Key Players
7. UK Tax Software Market Analysis – By Component
7.1 Overview
7.2 UK Tax Software Market Breakdown, by Component, 2021 & 2028
7.3 Software
7.3.1 Overview
7.3.2 Software Market Revenue and Forecast to 2028 (US$ Million)
7.4 Service
7.4.1 Overview
7.4.2 Service Market Revenue and Forecast to 2028 (US$ Million)
8. UK Tax Software Market Analysis – By Tax Type
8.1 Overview
8.2 UK Tax Software Market Breakdown, by Tax Type, 2021 & 2028
8.3 Sales Tax
8.3.1 Overview
8.3.2 Sales Tax Market Revenue and Forecast to 2028 (US$ Million)
8.4 Income Tax
8.4.1 Overview
8.4.2 Income Tax Market Revenue and Forecast to 2028 (US$ Million)
8.5 Corporate Tax
8.5.1 Overview
8.5.2 Corporate Tax Market Revenue and Forecast to 2028 (US$ Million)
8.6 Others
8.6.1 Overview
8.6.2 Others Market Revenue and Forecast to 2028 (US$ Million)
9. UK Tax Software Market Analysis – By Deployment Type
9.1 Overview
9.2 UK Tax Software Market Breakdown, by Deployment Type, 2021 & 2028
9.3 Cloud
9.3.1 Overview
9.3.2 Cloud Market Revenue and Forecast to 2028 (US$ Million)
9.4 On-Premise
9.4.1 Overview
9.4.2 On-Premise Market Revenue and Forecast to 2028 (US$ Million)
10. UK Tax Software Market Analysis – By End User
10.1 Overview
10.2 UK Tax Software Market Breakdown, by End User, 2021 & 2028
10.3 Individual
10.3.1 Overview
10.3.2 Individual Market Revenue and Forecast to 2028 (US$ Million)
10.4 Commercial Enterprises
10.4.1 Overview
10.4.2 Commercial Enterprises Market Revenue and Forecast to 2028 (US$ Million)
11. UK Tax Software Market Analysis – By Enterprise Size
11.1 Overview
11.2 UK Tax Software Market Breakdown, by Enterprise Size, 2021 & 2028
11.3 Small Enterprises
11.3.1 Overview
11.3.2 Small Enterprises Market Revenue and Forecast to 2028 (US$ Million)
11.4 Medium Enterprises
11.4.1 Overview
11.4.2 Medium Enterprises Market Revenue and Forecast to 2028 (US$ Million)
11.5 Large Enterprises
11.5.1 Overview
11.5.2 Large Enterprises Market Revenue and Forecast to 2028 (US$ Million)
12. UK Tax Software Market Analysis – By Industry Vertical
12.1 Overview
12.2 UK Tax Software Market Breakdown, by Industry Vertical, 2021 & 2028
12.3 BFSI
12.3.1 Overview
12.3.2 BFSI Market Revenue and Forecast to 2028 (US$ Million)
12.4 Government
12.4.1 Overview
12.4.2 Government Market Revenue and Forecast to 2028 (US$ Mn)
12.5 IT and Telecom
12.5.1 Overview
12.5.2 IT and Telecom Market Revenue and Forecast to 2028 (US$ Million)
12.6 Healthcare
12.6.1 Overview
12.6.2 Healthcare Market Revenue and Forecast to 2028 (US$ Million)
12.7 Retail
12.7.1 Overview
12.7.2 Retail Market Revenue and Forecast to 2028 (US$ Mn)
12.8 Others
12.8.1 Overview
12.8.2 Others Market Revenue and Forecast to 2028 (US$ Mn)
13. Impact OF COVID-19 Pandemic on UK Tax Software Market
13.1 UK: Impact assessment of COVID-19 Pandemic
14. Industry Landscape
14.1 Market Initiative
14.2 Product Development
14.3 Mergers and Acquisitions
15. Company Profiles
15.1 Acorah Software Products Limited
15.1.1 Key Facts
15.1.2 Business Description
15.1.3 Products and Services
15.1.4 Financial Overview
15.1.5 SWOT Analysis
15.1.6 Key Developments
15.2 BTCSoftware Limited (Bright Software Group)
15.2.1 Key Facts
15.2.2 Business Description
15.2.3 Products and Services
15.2.4 Financial Overview
15.2.5 SWOT Analysis
15.2.6 Key Developments
15.3 Capium Ltd.
15.3.1 Key Facts
15.3.2 Business Description
15.3.3 Products and Services
15.3.4 Financial Overview
15.3.5 SWOT Analysis
15.3.6 Key Developments
15.4 FreeAgent
15.4.1 Key Facts
15.4.2 Business Description
15.4.3 Products and Services
15.4.4 Financial Overview
15.4.5 SWOT Analysis
15.4.6 Key Developments
15.5 GoSimpleTax Ltd
15.5.1 Key Facts
15.5.2 Business Description
15.5.3 Products and Services
15.5.4 Financial Overview
15.5.5 SWOT Analysis
15.5.6 Key Developments
15.6 IRIS Software Group Ltd
15.6.1 Key Facts
15.6.2 Business Description
15.6.3 Products and Services
15.6.4 Financial Overview
15.6.5 SWOT Analysis
15.6.6 Key Developments
15.7 Nomisma
15.7.1 Key Facts
15.7.2 Business Description
15.7.3 Products and Services
15.7.4 Financial Overview
15.7.5 SWOT Analysis
15.7.6 Key Developments
15.8 The Sage Group plc
15.8.1 Key Facts
15.8.2 Business Description
15.8.3 Products and Services
15.8.4 Financial Overview
15.8.5 SWOT Analysis
15.8.6 Key Developments
15.9 Thomson Reuters Corporation
15.9.1 Key Facts
15.9.2 Business Description
15.9.3 Products and Services
15.9.4 Financial Overview
15.9.5 SWOT Analysis
15.9.6 Key Developments
15.10 Xero Limited
15.10.1 Key Facts
15.10.2 Business Description
15.10.3 Products and Services
15.10.4 Financial Overview
15.10.5 SWOT Analysis
15.10.6 Key Developments
16. Appendix
16.1 About The Insight Partners
16.2 Glossary of Terms

LIST OF TABLES

Table 1. UK Tax Software Market – Revenue and Forecast to 2028 (US$ Million)
Table 2. Glossary of Term: Tax Software Market

LIST OF FIGURES

Figure 1. UK Tax Software Market Segmentation
Figure 2. The UK Tax Software Market Overview
Figure 3. Software Segment to Show Remarkable Traction During Forecast Period
Figure 4. Sales Tax Segment to Dominated the Market
Figure 5. Cloud Segment to Dominated the Market
Figure 6. Commercial Enterprises Segment to Dominated the Market
Figure 7. Large Enterprises Segment to Dominated the Market
Figure 8. IT & Telecom Segment to Dominated the Market
Figure 9. UK – PEST Analysis
Figure 10. Ecosystem Analysis
Figure 11. Expert Opinion
Figure 12. UK Tax software Market Impact Analysis of Drivers, Restraints, and Trend
Figure 13. UK Tax Software Market – Revenue and Forecast to 2028 (US$ Million)
Figure 14. UK Tax Software Market Breakdown, by Component (2021 and 2028)
Figure 15. Software Market Revenue and Forecast to 2028(US$ Million)
Figure 16. Service Market Revenue and Forecast to 2028(US$ Million)
Figure 17. UK Tax Software Market Breakdown, by Tax Type (2021 and 2028)
Figure 18. Sales Tax Market Revenue and Forecast to 2028(US$ Million)
Figure 19. Income Tax Market Revenue and Forecast to 2028 (US$ Million)
Figure 20. Corporate Tax Market Revenue and Forecast to 2028 (US$ Million)
Figure 21. Others Market Revenue and Forecast to 2028 (US$ Million)
Figure 22. UK Tax Software Market Breakdown, by Deployment Type (2021 and 2028)
Figure 23. Cloud Market Revenue and Forecast to 2028 (US$ Million)
Figure 24. On-Premise Market Revenue and Forecast to 2028(US$ Million)
Figure 25. UK Tax Software Market Breakdown, by End User (2021 and 2028)
Figure 26. Individual Market Revenue and Forecast to 2028 (US$ Million)
Figure 27. Commercial Enterprises Market Revenue and Forecast to 2028 (US$ Million)
Figure 28. UK Tax Software Market Breakdown, by Enterprise Size (2021 and 2028)
Figure 29. Small Enterprises Market Revenue and Forecast to 2028 US$ Million)
Figure 30. Medium Enterprises Market Revenue and Forecast to 2028(US$ Million)
Figure 31. Large Enterprises Market Revenue and Forecast to 2028(US$ Million)
Figure 32. UK Tax Software Market Breakdown, by Industry Vertical (2021 and 2028)
Figure 33. BFSI Market Revenue and Forecast to 2028 (US$ Million)
Figure 34. Government Market Revenue and Forecast to 2028 (US$ Mn)
Figure 35. IT and Telecom Market Revenue and Forecast to 2028 (US$ Million)
Figure 36. Healthcare Market Revenue and Forecast to 2028 (US$ Million)
Figure 37. Retail Market Revenue and Forecast to 2028 (US$ Mn)
Figure 38. Others Market Revenue and Forecast to 2028 (US$ Mn)

• Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the UK tax software market.
• Highlights key business priorities in order to assist companies to realign their business strategies
• The key findings and recommendations highlight crucial progressive industry trends in the UK tax software market, thereby allowing players across the value chain to develop effective long-term strategies
• Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
• Scrutinize in-depth Asia Pacific market trends and outlook coupled with the factors driving the market, as well as those hindering it
• Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution.

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

According to our latest study on “UK Tax Software Market Forecast to 2028 – COVID-19 Impact and UK Analysis – by Component, Tax Type, Deployment Type, End User, Enterprise Size, and Industry Vertical,” the market is projected to grow from US$ 1,180.13 million in 2022 to US$ 2,038.45 million by 2028; it is estimated to grow at a CAGR of 9.5% from 2022 to 2028.

Continued Demand from Retail Sector Fuels UK Tax Software Market Growth

The retail sector in the UK has experienced a tremendous transformation with the growing trend of online shopping. The continuous introduction of various advanced technological solutions helps retailers increase their efficiency. UK 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. In the UK, the retail sector is among the rapidly evolving and essential sectors. The penetration of supply chain technologies, changing competitive landscapes, rising sustainability concerns among customers, and a surge in regulatory pressure are a few of the trends that are facilitating transformation in the retail sector in the UK. With the help of tax automation, retailers can increase efficiency and lower the risk associated with manual tax management. It also assists them in preparing themselves to enter new markets and establish sales channels that drive growth. Many retail companies are opting for cloud-based services. Cloud tax technology offers benefits such as business continuity management (BCM) and cost-reduction, which leads to a lower total ownership cost and disaster recovery benefits. In addition, retailers that adopt cloud tax technology are benefitted from cross-channel support (point-of-sale, e-commerce, mobile, etc.), speedy implementation, and scalability as additional advantages. Therefore, the adoption of tax software, especially cloud-based solutions, in the retail sector drives the UK tax software market growth.

Amid the COVID-19 pandemic, the UK government had to borrow huge amounts of money since the government was spending more than it was receiving from taxes. Per the record of government spending maintained by the Office for Budget Responsibility, the country borrowed US$ 483 billion between April 2020 and April 2021. The national insurance, income tax, and VAT together account for over half of the government’s revenue, which shows the declining trajectory after the onset of the COVID-19 pandemic which heavily impacted the UK tax software market growth. Also, the government spent over US$ 122 billion amid the pandemic to safeguard the UK economy. Hence, the country’s tax industry has been adversely impacted and is likely to introduce changes in the rates of income tax and equalize capital gains tax, VAT, Inheritance tax, and corporation tax. Individuals pay less income tax, shoppers pay less VAT because of fewer purchases, and businesses pay less tax in case their profits are less. All these hinderances experienced by the UK government in revenue generation severely affected the UK economy during the COVID-19 crisis. However, the pandemic had a short-term impact on the UK tax software market, which began growing gradually since 2021.

Key Findings of Study:

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 UK Tax Software Market is bifurcated into software and services. The UK tax software market, by tax type, is segmented into sales tax, income tax, corporate tax, and others. Based on deployment type, the UK tax software market is bifurcated into cloud and on-premises. In terms of enterprise size, the market is segmented into small enterprises, medium enterprises, and large enterprises. Based on end user, the UK tax software market is segmented into individual, and commercial. The UK tax software market, by industry vertical, is segmented into BFSI, government, IT and telecom, healthcare, retail, and others.

Tax software products are designed to help commercial enterprises and individuals manage their tax returns. These software solutions simplify the tax filing procedure by automatically calculating their tax obligations with given inputs. Tax software products are available in two formats: traditional software format and software as a service (SaaS) format. An increase in digital financial transactions among several industries, the complex nature of an existing tax system, and increased awareness among tax administrators are a few of the major factors propelling the demand for tax software in the UK. Despite spending a lot of time in managing tax compliance, businesses still find it difficult to maintain accuracy in their respective tax filings. This can be due to manual tax calculation practices that are prone to errors. An implementation of advanced automated solution such as tax software can help enterprises tackle challenges associated with income tax returns, such as unproductive and repetitive rate of interest, maintenance of expensive in-house application, and time consuming manual record keeping. The rising awareness regarding the effect of these challenges on the company’s overall tax compliance is driving the growth of the UK tax software market worldwide.