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Xero Simple: HMRC-recognised bookkeeping built for MTD for Income Tax

As Making Tax Digital (MTD) for Income Tax approaches, many sole traders and landlords are looking for a digital system that’s simple, reliable, and fully compliant. Xero Simple has been created specifically with MTD for Income Tax in mind — giving you the tools you need to stay organised, accurate, and confident throughout the year.

From April 2026, MTD will apply to individuals with gross income over £50,000, and from April 2027 to those earning over £30,000. This means quarterly digital updates and a final declaration will become part of your annual tax routine. Xero Simple is designed to make that transition as smooth as possible.

What Makes Xero Simple a Great Fit for MTD?

Xero Simple takes the core strengths of Xero and streamlines them for individuals who need a clean, compliant, and easy‑to‑use bookkeeping system. Key features include:

• Quarterly update support and final declaration tools to help you meet MTD requirements without stress
• Built‑in bank feeds for seamless, real‑time digital recordkeeping
• Easy reconciliation tools that keep your books tidy and accurate
• Receipt capture via Hubdoc to reduce paperwork and save time
• Clear tax liability insights throughout the year so you’re never caught off guard

Together, these features give you a clear picture of your finances and help ensure your records stay compliant as MTD becomes mandatory.

Join Our Live Webinar: See Xero Simple in Action

We’re hosting a practical walk‑through of Xero Simple with our partners at Xero on:

Tuesday 24 February - 2:00pm

You’ll see how the software works day‑to‑day, how it supports quarterly MTD submissions, and how it can simplify your bookkeeping from the ground up.

Webinar link: MicrosoftVirtual Events Powered by Teams

Preparing for MTD 2026/27 — What You Need to Keep in Mind

As the new rules come into force, it’s important to ensure:

• Your bookkeeping is fully digital and updated regularly
• Your income thresholds are monitored so you know when MTD applies
• Your records are accurate to avoid errors in quarterly submissions
• Your software is HMRC‑recognised and ready for MTD for Income Tax

Xero Simple ticks all these boxes, making it a strong choice for anyone wanting a smooth transition into the new digital tax system. Please reach out to us if you have any questions or would like more information.

13/01/2026