New end-to-end tool supports the UK’s next stage of tax digitisation, connecting client data to their tax return and syncing with Xero’s practice tools to support a seamless experience
Xero, the global small business platform, has today launched a personal tax solution for UK accountants and bookkeepers built to save them time and pave the way for future digital transformation.
The addition of this new end-to-end personal tax solution reinforces Xero’s critical role in automating tasks, as the industry gears up for the next phases of Making Tax Digital (MTD).
Following a comprehensive testing phase with accountants and bookkeepers, personal tax and sole trader accounts production is now available within Xero Tax. This is Xero’s cloud compliance solution which also includes company accounts and tax. Available at no extra cost as part of the company’s partner programme, data can be connected from clients’ books, accounts production and to their tax return. With everything now in one place, manual data entry is minimised and the process is streamlined.
Claire Markham from The Focus Collection who took part in the testing phase commented: “So far, Xero’s personal tax is the easiest tax software I have used in my 15-year career. It has already saved us time, and has made it easier when training new members of staff. We have been using Xero for the past six years and have moved everything over to Xero, as we find it so easy to use and our clients think the same.”
Andy Housley from Square 1 Accounting added: “As with all things Xero it’s intuitive, at least for me. I also like the fact it’s very simple and easy to navigate around.”
This new software development forms part of Xero’s commitment to being ready to support MTD for Income Tax Self Assessment (MTD for ITSA). Through launching this solution today, the company’s aim is to ensure accountants and bookkeepers can seamlessly make the transition to MTD for ITSA in the future.
The development of Xero Tax and the seamless integration it has with Xero HQ (the central place for accountants and bookkeepers to manage their practice) is a huge milestone for Xero as it works towards achieving its Next Generation Practice vision. The vision is to provide a unified experience across its suite of practice tools that accountants and bookkeepers use every day to onboard, collaborate and manage client workloads in the cloud from within Xero HQ.
Damon Anderson, Director of Operations, Xero UK said: “Technology forced about a decade’s worth of change during the pandemic, and the government’s digital tax agenda is gaining momentum. Xero Tax has already transformed the work accountants and bookkeepers do for small businesses in the UK, and this new tool is a game changer for the industry as it prepares for the next stages of tax digitisation.”
“Our new personal tax and sole trader accounts solutions remove manual tasks, create more accurate data and facilitate seamless digital filing experiences. This gives firms the ability to put the right attention on compliance, so they can provide full advisory services, which is so crucial at this time.”
Thousands of practices already use Xero Tax to manage accounts production and corporation tax. This new development means it is now possible to also process personal tax for individuals and company clients. Through its high level of automation, coupled with its simple design, personal tax helps every user carry out their accounts and tax tasks effectively and accurately. This means client data automatically flows through, populating the personal tax form. Within the client record, partners can add in their clients tax information so they don’t have to add that information multiple times or in multiple places.
Xero is working on the next stage of the Xero Tax journey to deliver more enhancements and expand its coverage to more tax and entity types in the coming months.
Xero Tax is available to all accountants and bookkeepers on the Xero Partner Programme. Find out more here