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  1. Xero Tax (UK) - Make available to businesses, not only to Partners

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    126 comments  ·  Practice tools  ·  Admin →
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    In development  ·  AdminKelly Munro (Community Manager, Xero) responded

    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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    Nicole Whitworth commented  · 

    I agree that this is a critical product update that's required from xero. the UK HMRC are removing the option to be able to file your corporation tax from 31st March 2026, and after that you will either have to pay an accountant or move to another accounting system.

    As a small business that is current pre-launch, we cannot afford to pay the £500 + VAT to an accountant to complete an online form that we can do ourselves in 20 minutes, so if Xero do not have this as an option, we'll have no choice but to leave you. I'm sure other small businesses are in the same boat so it is definitely worth introducing this functionality for business owners.

    This won't dilute your revenue stream, because companies that can afford an accountant, will still be using Xero partners to file the necessary paperwork, but smaller organisations just can't afford this extra expense it.

    I really hope this will be available by March 2026 otherwise we'll have to move - I don't want to, but can't afford not to!

    Nicole Whitworth supported this idea  ·