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250 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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Steve Bannister
commented
What is the point of being able to use Xero for VAT, MTD, and many other features but not Corporation Tax? I pay a subscription to manage my own company, but I must pay for an accountant just to lodge my Corporation Tax. It's even more frustrating when I have to pay extra to lodge a loss.
Come on, MTD in the 21st Century, Xero should be an all-in-one solution.
Steve Bannister
supported this idea
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The ironic twist here, and a real kick in the wotsits for Xero, is when I called a 'Xero Partner' he told me that, for what he would charge me, it would be cheaper to find better software that handles Corporation Tax!
Think about it, if a company doesn't owe tax, but still has to lodge, why would we want, or be able to afford, to pay for an accountant? I would happily pay a bit more for my subscription to be able to do everything myself. And shouldn't Xero be happier to keep customers over losing them?
I'm sure it's a simple bit of extra code, that's all. Or is Xero making more from partners to care about a small business' bottom line?