Xero

A Xero Silver Partner working with Xero since 2012. We set up Xero, train your team and keep your books up to date, so you see your numbers live. Taxlab is a Xero-certified accountant in Bathgate, West Lothian, helping small businesses, sole traders and landlords across Scotland move their bookkeeping online and stay compliant with HMRC.

Whether you are starting out, switching from spreadsheets or another package, or already use Xero and want more from it, we can set it up properly, train your team and look after your books for you.

Talk to us about Xero

What you can do with Xero

Xero is online accounting software that you can use on your computer, phone or tablet. Key features include:

• Bank feeds and reconciliation – connect your bank so transactions flow into Xero automatically, ready to match and reconcile.
• Quotes and invoices – send professional quotes and invoices, and let customers pay online so you get paid faster.
• Bills and supplier payments – capture bills, track what you owe and pay suppliers on time.
• Smart document capture – snap a receipt or upload a bill and Xero reads the details for you.
• VAT returns – prepare and submit Making Tax Digital VAT returns to HMRC directly from Xero.
• Payroll – run payroll for your team inside Xero.
• Construction Industry Scheme (CIS) – automate subcontractor CIS calculations and reports.
• Expenses and mileage – let staff claim expenses and mileage from their phones.
• Projects – track time and costs on each job and see which work is most profitable.
• Cash flow forecasts and dashboards – see what is coming in and going out, and how the business is performing, in real time.

See the full list on Xero’s accounting software features page.

Xero and Making Tax Digital for Income Tax

Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028. If it applies to you, you must keep digital records and send HMRC quarterly updates using compatible software.

Xero is HMRC-recognised software for Making Tax Digital for Income Tax, so you can keep your records, send quarterly updates and file your tax return in one place. We can sign you up, set Xero up for your self-employment and property income, and send your updates for you. Read our guide to where MTD for Income Tax stands now.

AI in Xero: JAX

JAX is Xero’s built-in AI. At Xerocon London in July 2026, Xero announced new JAX features designed to take routine bookkeeping off your plate, including:

• Smart document capture – JAX reads receipts and bills and extracts the details into Xero.
• Automatic bank reconciliation – JAX matches transactions to your bank feed in real time.
• Cash flow help – Xero is introducing tools to follow up unpaid invoices, check bills before you pay them and suggest actions when cash is tight.
• Connections to everyday tools – integrations with Microsoft 365 Copilot and Anthropic’s Claude let you ask questions about your live Xero figures from the tools you already use.

Xero has also said it will bring Corporation Tax into the platform, alongside its existing UK compliance tools for accounts production, partnership tax and MTD for Income Tax. We will keep clients posted as new features arrive.

Which Xero plan is right for you?

Xero’s UK plans are Ignite, Grow, Comprehensive and Ultimate. All four let you reconcile your bank, capture documents, submit VAT returns and are ready for MTD for Income Tax. The higher plans add more invoices and bills, payroll for more people, longer cash flow forecasts, multiple currencies, projects and advanced analytics. See the latest Xero plans and pricing.

As a Xero partner, we will recommend the plan that fits your business, so you are not paying for features you do not need.

How Taxlab helps with Xero

• Set-up and migration – we set up your chart of accounts, VAT, bank feeds and invoice templates, and move your data across from your old system.
• Training – we show you and your team how to use Xero day to day.
• Bookkeeping – we can keep your Xero books up to date for you. Find out more about our bookkeeping service.
• VAT and payroll – we prepare and submit your VAT returns and run your payroll.
• Year end accounts and tax – because we can see your Xero file, your year end accounts and tax returns are faster and more accurate.
• Apps that connect to Xero – we recommend and connect apps such as Dext for receipts, as part of our cloud accounting implementation.

See our Taxlab profile on Xero’s advisor directory.

Xero FAQs

Is Xero compatible with Making Tax Digital?

Yes. Xero is recognised by HMRC for Making Tax Digital for VAT and for Income Tax, so you can keep digital records and submit returns directly from Xero.

Can I switch to Xero part way through the year?

Yes. We can move your opening balances and transactions across at a date that suits you, so there is no need to wait for your year end.

Do I need an accountant if I use Xero?

Xero handles the day-to-day recording, but you still need year end accounts, tax returns and advice. Working with a Xero partner means your accountant can see the same live figures you do, which makes everything quicker and cheaper.

Get started with Xero

Talk to us about setting up Xero or getting more from it. Call 0845 862 6009, email hello@taxlab.co.uk or message us on WhatsApp.

Get in touch

Videos are produced by Xero. Xero features and plans change from time to time; check Xero’s website for the latest details.