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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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    Barney Morrison-Lyons commented  · 

    Same comments as the below - I will be looking for an alternative to Xero when filing for small entities is closed down by HMRC March 2026 because I don't want to pay the absolutely ridiculous fees for someone else to press a few buttons on my behalf. It's annoying as it is using the micro entity service to simply copy and past from Xero, but being directed to hiring one of the Xero partners by their support for what essentially would be a simple MTD interface setup that they already have with other services makes me want to quit the service as it suggests they get a better margin from promoting Xero Tax to their partners plus pushing their regular clients to hire those firms.