Editor | 14 February 2019
Xero’s Instafile Will Make January Tax Filing Much Easier

Xero’s Instafile Will Make January Tax Filing Much Easier

Did you struggle filing your tax return last month? Xero’s acquisition of Instafile promises to make tax preparation much easier next time around.

Instafile, which is only available through Xero Partners like CloudAccountant.co.uk, automates tax filing and reporting by connecting small businesses directly with tax authorities like HMRC.

This makes the ‘last mile’ of financial reporting much easier for small businesses and their accountants.

Automatic reporting is also a key part of the government’s Making Tax Digital (MTD) campaign. Under MTD, VAT-registered businesses need to keep digital VAT records and submit VAT returns through HMRC-connected software from April 2019.

On the current timeline, we expect MTD filing to be mandatory for all tax types from 2020.

Since acquiring Instafile last November, Xero has been busy making plans for the technology.

This month, Xero announced that it would integrate Instafile functionality into their core software offering. So rather than being a separate product, Instafile’s direct tax filing functionality will be available through the Xero platform.

They also announced plans to introduce self-assessment filing, making the January tax season less taxing.

Xero Managing Director UK & EMEA Gary Turner said: “The acquisition of Instafile will connect the ‘last mile’ between the Xero platform in the UK and HMRC for accountants and bookkeepers. Tax filing functionality has driven significant Xero partner market penetration in Australia and New Zealand, and we anticipate a similar boost in the UK given our sizeable addressable market.”

Launched in 2016 in London, Instafile was founded by founders Keith Carsley and Alvin Ho. The two entrepreneurs and software engineers have worked on various ventures together for 14 years and have stayed working with Xero through the acquisition.

Miles Grady, Director of CloudAccountant.co.uk said: “Recognising that many small and medium sized businesses still aren’t prepared, Xero is stepping up its MTD planning.

“The MTD for VAT deadline is just a couple of months away but with Instafile, Xero is looking ahead to 2020 when MTD recording will be mandatory across all tax types.

CloudAccountant.co.uk is also preparing new digital strategies for clients and helping them prepare for MTD. Part of this preparation includes getting all of our accountants up to speed on the latest tools like Instafile.”

Instafile is currently only available through pre-registered Xero Partners like CloudAccountant.co.uk.

CloudAccountant.co.uk is a Xero Platinum Partner, helping hundreds of businesses manage their finances the easy way.

For more information about Xero or Instafile, please speak to a member of the team today. Call: 0808 281 0303.