Settings and activity
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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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sara Keeves
supported this idea
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Unfortunately for Xero I can see a loss in clients due to tax returns being digital from April 2026.
It appears illogical that a small business is prohibited from completing their own tax return using Xero, while being compelled to pay an accountant or bookkeeper (via the xero partner program) to undertake a task that most businesses are capable or performing independently.
From a cost-effective view, it would make more sense for my business to change software that facilitates the completion of yearly tax returns rather than incurring the expense of paying an accountant to complete a task that I am already capable of doing.