Making tax digital with Xero Tax is changing for businesses, accountants and bookkeepers across the UK. Here’s what making tax digital means for your practice.

What is making tax digital?

Making tax digital is part of the government’s plans to make it easier for people and businesses to stay on top of their accounting. It means the end of annual tax returns for millions across the UK.

HMRC will require all businesses to start filing quarterly tax returns online as soon as April 2019, with a real impact on how you work with your clients.

digital tax account software

More transparent

Communications with HMRC will become automated, making it crucial to maintain up-to-date accounts.

quarterly tax returns with Xero accounting software

More accurate

Tax summaries will need to be submitted at least quarterly through software – giving HMRC an accurate view of accounts.

submit tax online

More digital

All kinds of businesses – whatever their size – will need to use software to submit tax returns online starting April 2018.

Small clients, like sole traders, are likely to be the most affected by making tax digital. But Xero can make managing your smallest clients easy.
Find out how

How can Xero help?

You can make sure the transition to digital tax runs smoothly by moving clients to Xero. As the UK’s leading cloud accounting software, Xero is the perfect place to start.

The entire accounting process is handled, all the way up to tax preparation - it makes the job much much easier. And we’re working with HMRC to make sure you’re ready for the launch of making tax digital.

Today, Xero helps accountants to streamline client account management by providing:

Direct bank feeds

Xero receives bank transactions directly from more leading UK banks than any other cloud accounting software provider.

bank feeds with Xero accounting software

Practice tools

Smart tools like Find & Recode make it easy for accountants and bookkeepers to discover and fix errors in a couple of clicks.

digital tax and other practice management tools for accountants and bookkeepers

Intelligent alerts

Xero shows you exactly what needs to be done for each client, and when, so you can easily stay on top of your workload.

accounting and tax software with intelligent alerts

How to prepare for making tax digital


Assess your processes

Think about how you can automate and streamline your practice’s workflow across all clients for better efficiency.


Identify the relevant clients

Work through your client list to identify which businesses you’ll need to migrate to digital accounting, and when.


Get started today

Smooth the transition to making tax digital and start migrating your clients to a digital accounting solution.

More resources available to you

Making tax digital guide

Find out more about making tax digital in this accountant and bookkeeper guide.

Find out more

More on sole traders

Xero makes sole trader client management faster and more profitable than ever.

Find out more

Switching to Xero

Find out why Armstrong Watson are bringing all their clients to Xero.

Find out more

VAT returns in Xero

Find out how you can submit VAT returns to HMRC directly from Xero.

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Not a Xero partner?

Become an accounting partner today or find out more about our Partner Programme.

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