Report : UK Tax Software Market Size and Forecast (2021 - 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Software and Services), Tax Type (Sales Tax, Income Tax, Corporate Tax, and Others), Deployment Type (Cloud and On Premise), End User (Individual, Commercial), and Geography
Rising Adoption of Advanced Technologies to Provide Opportunities for UK Tax Software Market Growth During 2023-2031<br><br>According to our latest study, "UK Tax Software Market Size and Forecast (2021-2031), Global and Regional Share, Trend, and Growth Opportunity Analysis - by Component, Tax Type, Deployment Type, and End User," the market is projected to reach US$ 2.79 billion by 2031 from US$ 1.28 billion in 2023. The market is expected to register a CAGR of 10.2% in 2023-2031. The increasing adoption of blockchain technology is likely to remain a key UK tax software market trend.<br><br>In the UK, cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA) are changing traditional accounting and taxation methods. These technologies support taxation and accounting firms to operate more efficiently and reduce the number of errors. These advanced technologies automate numerous tasks, including invoice processing, data input, and reconciliations, which support tax professionals in increasing their focus on and investing more time in strategic tasks such as data analysis and customer consulting services. Significant benefits offered by AI, ML, and RPA to tax software increase their adoption among tax companies, further creating market growth opportunities. For instance, in February 2022, KPMG LLP, a UK limited, partnered with Blue J to jointly develop and launch a first-of-its-kind suite of artificial intelligence (AI) tax analysis tools for their customers in the UK. Moreover, benefits offered by advanced technologies encourage companies to develop new innovative software for their customers. For instance, in February 2024, PwC UK developed and launched a UK tax AI assistant tool with Harvey and OpenAI. This UK tax AI assistant tool is available for all 2,300 PwC UK Tax professionals and assists them in generating tax content to provide tax-related services to their clients. Thus, rising adoption of advanced technologies to provide opportunities for UK tax software market growth.<br><br>UK Tax Software Market Analysis- by Component, 2023<br><br>Source: Business Market Insights Analysis<br><br>The UK tax software market analysis is carried out by identifying and evaluating key players in the market across different regions. 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 players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem. <br><br>The report includes the UK tax software market forecast by component, tax type, deployment type, and end user from 2023 to 2031. Based on component, the market is bifurcated into software and service. The software segment held a larger UK tax software market share. The tax software simplifies the tax filing procedure by automatically calculating the tax obligations of businesses and individuals with given inputs. Tax software are available in two formats: traditional software format and software as a service (SaaS) format. The increase in digital financial transactions among several industries, the complex nature of the existing tax system, and increased awareness of tax administrators are among the major factors increasing the demand for tax software.<br><br>Based on deployment type, the market is bifurcated into on-premise and cloud. The cloud segment held a larger UK tax software market share in 2023. Due to the advent of cloud deployment, securing sensitive data has become a challenge for organizations. Therefore, businesses are inclined toward cloud-based tax software, as the tax return is automatically backed up by secure servers. Tax returns can be stored and accessed at any time with the deployment of cloud-based tax software.<br><br>The UK tax software market report also includes growth prospects owing to the current market trends and their foreseeable impact during the forecast period. 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 a 3% tax on digital services. The imposition of tax on the digital services of these tech giants is expected to increase the sales of tax software in the UK during the forecast period. In addition, software packages in the UK ensure that the user files taxes with His Majesty's Revenue & Customs (HMRC) while covering allowances and tax deductions. Owing to the rising number of freelancers, small business owners, and sole traders across the country, the need to have advanced software for filing taxes is booming. Moreover, with the rise in digitalization and the integration of advanced technologies in industries, the tax software market is growing in the UK.<br><br>The UK ranks 22nd among 36 OECD countries on the 2020 International Tax Competitiveness Index. Nearly half of UK tax revenue is from individual income taxes and national insurance contributions. Furthermore, the UK government has taken the initiative called "Making Tax Digital (MTD)," which sets out a vision for the "end of the tax return" and "transformed tax system 2019." The HM Revenue and Customs (HMRC) affirms that the prime goal of the 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. On April 1, 2021, Phase 2 of the MTD initiative was initiated, and its completion date is set for April 2027. From April 2022, Making Tax Digital for VAT was applied to all VAT-registered businesses. Such government initiatives will increase the need to adopt tax software among the businesses in the UK.
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