GoSimpleTax, the Greater Manchester-based self-assessment tax software firm, says it’s on track to achieve £9.5m revenues as it prepares for government changes.
HM Revenue and Customs (HMRC) will be rolling out its Making Tax Digital initiative which aims to digitise the 海角视频’s tax system and make it more efficient and simpler for taxpayers.
Businesses will have to maintain their records digitally and provide updates online using approved software.
Oldham-based GoSimpleTax said it expects to gain 2 per cent of the Making Tax Digital market, which equates to 67,000 new users by April 2022.
The company’s HMRC recognised digital tax return technology makes it simple for people to file their tax returns, say bosses.
Its software uses artificial intelligence to give users nudges and prompts to help them calculate their correct tax – for example it will remind users of expenses they may have forgotten to claim, such as road tax when they have claimed fuel. The software also files its results straight to HMRC, making it a one-step process.
While HMRC has indicated that Making Tax Digital for individuals will be mandated no earlier than April 2021, an exact date has not yet been confirmed and the GoSimpleTax believes it will go live in April 2022.
James Cryne, director at GoSimpleTax, said: “HMRC will not be providing software for that, so that is when our growth will be massive at that point, because we’ve got 3.5m people who are actually going to turn round and look for a solution because HMRC won’t provide it any more.”
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Turnover at GoSimpleTax has increased year-on-year at a rate of 100 per cent. It said future growth is expected to exceed this percentage following the launch of its ‘Making Tax Digital’ (MTD) for VAT software in April.
Mr Cryne said the company was set up after identifying a gap in the market for tax software that “individuals could use themselves that didn’t require an accountant, as well as having accountants using it”.
He said: “We took it to market as a commercial product and the last few years we’ve built it up and accumulated 8,000 recurring subscriptions of people using and we’ve filed nearly 32,000 tax returns on it.”
In 2017, the firm launched a cloud and smartphone app, to enable self-employed to process their tax returns.
He said: “One of the first things we did was create the mobile app so that people could scan receipts and you could upload from your phone on the go which is what HMRC wants.”
Landlords have also provided GoSimpleTax with large growth opportunities, as they become more interested in using the software, particularly those who have inherited a property.
Mr Cryne said: “We’re seeing quite a big shift in the types of people coming on board, so they’re declaring their employment income plus they’re declaring the income that they’re getting from being a landlord.”
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Last month, the company beat of competition from the likes of Dropbox and Xero to win Most Innovative SMB Product at the 海角视频 Cloud Awards 2019.
Mike Parkes, technical director at GoSimpleTax, said: “Winning this accolade ahead of such renowned brands is a testament to the hard work of the GoSimpleTax team and the delivery of this innovative software across the 海角视频.
“Aligning with HMRC’s digital strategy, this tool has already helped people to file more than 30,000 tax returns through a one-step, stress-free method for managing their personal tax, saving them time and money in the process – with the potential to help millions of people.”