MTD for IT (Income Tax)
MTD for ITSA
Xero have been a bit quiet on the issue of MTD for ITSA. What is the suggested solution for ITSA? If the Xero plan is to charge the starter plan at £14/month (plus VAT) I think you will lose a lot of the market share. MTD for ITSA needs a simple £5/month solution for sole traders with ability to use expenses app for free. The costs of £14/month plus £2.50 for expenses is going to lose a lot of our clients to competitors like FreeAgent (which is free if you have an RBS/Natwest/Mettle account). Finding it hard to advise clients now on what to use because haven't seen/heard the Xero solution.
John Sadler
shared this idea
Hi everyone, we want to assure you that Xero is fully committed to supporting you and your clients through the upcoming MTD changes. Making Tax Digital for Income Tax (MTD for IT) will be available across all Xero business plans, and as you may have seen we've also recently launched Xero Simple, a new plan built specifically to support non VAT registered sole traders and landlords, as they prepare for the next phase of Making Tax Digital.
With Xero Simple, you'll be able to manage finances, stay compliant, and adopt digital processes early. We appreciate the interest in how Xero will help you navigate MTD for IT and you can have confidence that Xero has you covered, whatever your needs.
More information on MTD for IT here and Xero Simple information for Xero partners here.
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Leigh Carrington
commented
This is going to be next most important thing for accounts and bookkeepers
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Kate Robinson
commented
MTD for ITSA is expected to be in force for the self-employed with a gross income over £50,000 from April 2026. Will your starter or standard packages have this feature available to enable us to submit the self assessment return?