MTD for IT - Clients to be able to add multiple tax payers in Xero themselves
It's great that, as a Xero Partner, we can add multiple taxpayers to the same Xero licence for Making Tax Digital for Income Tax. This is particularly beneficial for situations such as husband and wife property owners who each hold a 50% share of a property.
However, not all clients choose to have their accountant manage their MTD submissions. For those who prefer to handle their own compliance, it can be frustrating that a second taxpayer cannot currently be added directly by the client within Xero.
Allowing clients to add and manage additional taxpayers themselves would be a valuable enhancement. It would provide greater flexibility, reduce reliance on accountants for setup, and make MTD compliance more accessible for clients who wish to manage the process independently. This would be a significant improvement to the user experience and particularly helpful for jointly owned property portfolios.
Thanks for sharing your idea! Multiple taxpayers can already use MTD for Income Tax in the same Xero organisation.
To add another taxpayer:
- Invite them into the Xero organisation so they can access it using their own Xero login.
- Once they’ve accepted the invitation, they need to sign up for MTD for Income Tax and complete their own onboarding in Xero, connecting their own HMRC account.
Our Add multiple taxpayers for MTD for Income Tax article explains this under Small business users. 😊