Xero Tax (UK) - Make available to businesses, not only to Partners
Ability to have Xero Tax for businesses, not only for Partners
Hi everyone, we've got a bit of an update we'd like to share with you all here.
Some of you may have already seen, following the closure of CATO, we’re launching a new simple accounts production & tax solution for small businesses. This'll be available as a paid annual add-on from August 2026.
With this solution you’ll be able to file your micro company accounts and corporation tax returns directly to HMRC from inside Xero, using data from your organisation in one simple flow.
The feature doesn’t replace the more powerful, flexible tools you use with your accountant or bookkeeper. If your advisor files on your behalf, nothing changes.
This solution is for small business owners handling their own corporation tax, this means less time wrestling with separate tools and a simpler, more streamlined way to stay compliant.
If your tax needs get more complicated or you need more support, we encourage you to use our Advisor directory to connect with an advisor.
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Bryan McKinley
commented
This should also apply to small partnerships and sole traders to enable them to run financial statements and submit tax returns - not just CT600s - I feel like this is a very unfair approach especially when small businesses sometimes have their own in house accountants as well
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Jeanette Murray
commented
There's no mention of the proposed extra cost for this 'Add-on' and does it take into consideration the financial burden of the last 12% price increase small business users were hit with?
I agree with other respondents that, if your expertise requires use of 'Grow' and above packages this would indicate the capability to file Micro Accounts and CT600without the need for external Partners ,and should be included in the subscription price. -
Thomas Cusack
commented
The business model should be, as you are already paying for a subscription, you are therefore paying for the service to do your own accounts and submit them yourself. This will be covered in the basic subscription fee. There should be no bolt on or minimal additional expenditure as the minimal viable product that should be provided to customers has to provide the requirement to do their own tax returns. The customer then has the option if they want to use their accountant to make them a partner or choose one from the provided partner list. It may make sense to charge a one off nominal fee at this point, as you have chosen on board an accountant and for the use of XeroTAX which is over and above the basic requirement offering. But again this would have to be nominal due to the additional accountancy costs, if the customer chooses to go down this route. What is being proposed is counter intuitive and not a solution small business can align with.
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Nick Williams
commented
This should be free/minimal cost - I have to use Tinytax at the moment (which is very good) but an extra hoop to jump through considering Xero already have all the info to hand
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Thomas Cusack
commented
So let me get this right. Already struggling small businesses who have been forced to purchase and use software subscription services, of which they used to do themselves, which equates as an additional business cost. The solution you’re proposing is yet another "bolt on" subscription compounding yet again the financial burden to an activity that has happily done by themselves with no need for an accountant or financial adviser in sight. This is deemed a good solution by Xero with an additional financial burden? I think you greatly misunderstood the voice of your customers. Don't get me wrong, it’s great you are trying, but the upbeat positivity of this communication is way off the mark and will not resonate as positively with all the small business owners using your platform.
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Steve Wing
commented
Like the other respondents, there is no point in using Xero for a few small companies I am involved in if, following the closure of HMRC online direct CT600 submission, I have to use a "partner".
What use is a "Partner" when accounts and CT600 are so simple? I need to be able to file direct, just as before the closure above. So please make this available asap. I have some August year end companies, so the planned availability to submit direct by users of Xero really needs introducing NOW PLEASE!
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Mark Nicholls
commented
Now HMRC has withdrawn the facility for small companies to file their CT600 directly, it would be great if this facility was available for individual companies within Xero rather than having to acquire a third party product. Smaller businesses using Xero should not be forced to use a professional firm to file their taxes.
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Paul Berry
commented
Totally agree Annette.
Other systems allow this but now they're advertising it for sole traders and landlords MTD, these people cannot actually submit their forms as it suggests they can. I know people who have signed up thinking they can submit their returns and are now moving onto other software due to Xero not allowing this.
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annette colton
commented
We really need Xero to implement the capability for small businesses to submit their UK corporation tax return online, directly without an approved xero partner, BEFORE MARCH 2026 WHEN THE HMRC ONLINE SERVICE FOR SUBMITTING CORPORATION TAX RETURNS STOPS.
Our main justification to pay for Xero is it saves he cost of an accountant!
Currently HMRC lists Xero as an alternative software package for submitting tax returns after March 2026; but at the moment this is not an option in Xero unless you are a professional accountancy firm approved as a "Xero partner".
If Xero does not intend to make this service available directly to small businesses then you need to ask HMRC to remove you from their list of commercial software providers that can do this - currently this is false advertising. -
Anne Petersen
commented
I have been told I can use Xero to submit quarterly returns and the final submission but I won’t be able to submit my SA return as Xero only allows Xero partners to submit SA returns using Xero. The software therefore does not fulfil my needs as I want to file my own SA return. Will Xero allow me to file my SA return ?
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annette colton
commented
The HMRC website lists Xero as an approved option for approved software for small businesses to submit corporation tax returns directly, from 2026.
Please can Xero implement a feature to do this directly for small businesses, as well as the current version which is only available to professional accountants through the "Xero Partners" programme?
If Xero is not planning to implement a company tax submission feature for small businesses then this it is very misleading to advertise it on the HMRC website? -
Adam Bond
commented
I also need to be able to file my Corporation Tax through Xero if possible, I have a small business and am not able to afford to pay an accountant exhorbitant fees (exhorbitant because if I can reconcile my accounts in Xero (which my old accountant never did for me) and then file my accounts and do my Corporation Tax return in a few hours, then a qualified accountant can do it in under an hour, yet they want £800 to do this! So I need to be able to do this in Xero like so many other small businesses.
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John Andrew
commented
I would also add that if you want to reverse this decision, you need to do it soon. It will take a long time for people to move to another system and we will be making our decisions to do that very soon.
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John Andrew
commented
I have to add to all the other voices here. If your business model is based on accountancy firms using the software and pushing it onto businesses, I would recommend changing it. You will lose many, many UK customers because of this.
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Amy Widman
commented
This imperative that this software gets released to businesses! It’s the whole reason I use it, so I don’t have to pay an accountant! If I’m forced to use an accountant then you’ll lose my subscription? Seems ridiculous that Xero wouldn’t open this up for businesses?!
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Darren Harmer
commented
I'm a book keeper. I don't file accounts for my clients but I do file accounts for myself. If I am unable to obtain electronic filing services from Xero this will force me to use the services of an alternative supplier. I have no need to become a partner at the current time as my clients have accountants that file for them.
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Keith Evans-Hurley
commented
as a simple small business, finding an affordable way of doing the end of year accounts seems impossible. What I pay an accountant plus any tax i need to pay often means I cant afford to pay myself for the work i have done over a couple of months.
This means that i will not continue with Xero and continue my search else where
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annette colton
commented
I really need this as well, BEFORE MARCH 2026 WHEN THE HMRC ONLINE SERVICE FOR SUBMITTING CORPORATION TAX RETURNS STOPS.
Our main justification to pay for Xero is it saves he cost of an accountant!
Currently HMRC lists Xero as an alternative software package for submitting tax returns after Mar 2026; but at the moment this is not an option in Xero unless you are a professional accountancy firm.
If Xero does not intend to make this service available you will need to ask HMRC to remove you from their list of commercial software that can do this. -
Nicole Whitworth
commented
I agree that this is a critical product update that's required from xero. the UK HMRC are removing the option to be able to file your corporation tax from 31st March 2026, and after that you will either have to pay an accountant or move to another accounting system.
As a small business that is current pre-launch, we cannot afford to pay the £500 + VAT to an accountant to complete an online form that we can do ourselves in 20 minutes, so if Xero do not have this as an option, we'll have no choice but to leave you. I'm sure other small businesses are in the same boat so it is definitely worth introducing this functionality for business owners.
This won't dilute your revenue stream, because companies that can afford an accountant, will still be using Xero partners to file the necessary paperwork, but smaller organisations just can't afford this extra expense it.
I really hope this will be available by March 2026 otherwise we'll have to move - I don't want to, but can't afford not to!
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Sergio Romanets
commented
I completely understand the marketing strategy behind Xero’s decision to make Xero Tax available exclusively to partner accountants and bookkeepers. It clearly serves as an incentive for accountancy firms to promote the Xero ecosystem—essentially a trail of breadcrumbs designed to deepen their commitment to your platform.
However, from my perspective as a small business owner, this approach lacks practical business justification. I see no value in paying an accountancy firm a significant fee—often for what amounts to a 15-minute task—when competing software solutions offer fully integrated annual accounts filing at a fraction of the cost, often much less than the fee charged by those firms.
I hope Xero will consider offering more flexible access models for small businesses who are capable of managing their own filings, or who prefer to use technology rather than outsource routine compliance tasks.