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    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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    Mildred Talabi commented  · 

    Totally agree that it's frustrating (and a waste of money) to not be able to log corporation tax through Xero as a business owner.

    This feature is critical for a solo business like mine with basic accounts. It would save me a lot in accountant fees. I actually only signed up to Xero as I thought this was possible, so I'm very disappointed to find out that it's not.

    Also, it's even more important now that HMRC are planning to shift to software only accounts filing over the next few years, as per their email below.

    It would be great if you can implement this sooner rather than later.

    In the meantime, I think I might have to cancel my subscription and switch to somewhere like Freeagent which seems to offer this service.

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    Changes to accounts
    The online accounts and Company Tax Return service is closing on 31 March 2026.
    If you use this service to file your accounts with Companies House and Company Tax Return with HMRC, you’ll need to find alternative filing methods once it closes.
    Over the next 2 to 3 years, we’ll be transitioning towards filing accounts by software only. 
    We’re preparing a detailed timetable and we aim to give companies 21 months’ notice ahead of the change. Most companies can make the change now as software is already available. We’ve published an updated version of our Find software for filing company accounts tool to help companies to choose a suitable software product.
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    Mildred Talabi supported this idea  ·