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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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Thomas Cusack
commented
So let me get this right. Already struggling small businesses who have been forced to purchase and use software subscription services, of which they used to do themselves, which equates as an additional business cost. The solution you’re proposing is yet another "bolt on" subscription compounding yet again the financial burden to an activity that has happily done by themselves with no need for an accountant or financial adviser in sight. This is deemed a good solution by Xero with an additional financial burden? I think you greatly misunderstood the voice of your customers. Don't get me wrong, it’s great you are trying, but the upbeat positivity of this communication is way off the mark and will not resonate as positively with all the small business owners using your platform.
An error occurred while saving the comment Thomas Cusack
commented
It seems a little prohibitive to your customer base to funnel clients through a route of only certified book keepers / accountants that can submit Corporation and Income Tax returns on your behalf. It’s a shame, as the software is really easy to use and pick up but now I find myself having to seriously consider cancelling and using an alternative that's not so user friendly but offers the flexibility of the end user submitting their own returns, and not being forced down a specific route. A lot of businesses have built up long relationships with 3rd party or internal accountants who are very good at their job and should have the opportunity to continue to provide that service without having to jump through additional hoops to become a partner. I fear you are alienating a large section of the business population who could be an important revenue stream for you. It can still be a selling point for those partnered accountants for ease of set up and I estimate 60 – 65% of new customers would still choose the easy route and select a recommended partner, but the fact remains it shouldn’t be mandated and the customer should have the flexibility to choose what’s right for them at the point of time that their circumstances demand. Xero TAX needs to be made available to the end user responsible for the subscription.
Thomas Cusack
supported this idea
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The business model should be, as you are already paying for a subscription, you are therefore paying for the service to do your own accounts and submit them yourself. This will be covered in the basic subscription fee. There should be no bolt on or minimal additional expenditure as the minimal viable product that should be provided to customers has to provide the requirement to do their own tax returns. The customer then has the option if they want to use their accountant to make them a partner or choose one from the provided partner list. It may make sense to charge a one off nominal fee at this point, as you have chosen on board an accountant and for the use of XeroTAX which is over and above the basic requirement offering. But again this would have to be nominal due to the additional accountancy costs, if the customer chooses to go down this route. What is being proposed is counter intuitive and not a solution small business can align with.