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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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I completely understand the marketing strategy behind Xero’s decision to make Xero Tax available exclusively to partner accountants and bookkeepers. It clearly serves as an incentive for accountancy firms to promote the Xero ecosystem—essentially a trail of breadcrumbs designed to deepen their commitment to your platform.
However, from my perspective as a small business owner, this approach lacks practical business justification. I see no value in paying an accountancy firm a significant fee—often for what amounts to a 15-minute task—when competing software solutions offer fully integrated annual accounts filing at a fraction of the cost, often much less than the fee charged by those firms.
I hope Xero will consider offering more flexible access models for small businesses who are capable of managing their own filings, or who prefer to use technology rather than outsource routine compliance tasks.