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248 votes
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,…
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Dr José Maia e Costa
supported this idea
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Dr José Maia e Costa
commented
If Xero is already dealing with the VAT side of taxation under HMRC rules, why not also cover the submission of yearly accounts?
Xero has all the details needed for this, and missing data could be inputted directly by the Xero user if needed.
Of course that for someone like Simon Jones, who is a Xero Partner, it would be better to defend their end than to suggest better ideas to develop what Xero is already doing.
Considering I have contacted several Xero Partners to do the accounts for my small company, and their quotes, even though most of their work is already done in Xero, are similar to any other accountant that does not work with Xero.
And I can say this comfortably, as I have another company with an accountant (not Xero Partner) working for me.
So their quotes are simply ridiculous and they are taking advantage of both Xero and small companies.
Also, according to your comment, then doing VAT returns would be a nightmare, which is not.