Why We Built TaxStats: Replacing Xero's Myriad of Apps With One Platform

If you run a UK business and use Xero, chances are you are also paying for several additional pieces of software. Xero handles bookkeeping and invoicing well, but when it comes to the full range of UK tax compliance and accounting needs, it falls short. That is why most Xero users end up with a collection of add-ons and separate subscriptions — and that is exactly the problem we built TaxStats to solve.

The Problem: Death by a Thousand Subscriptions

A typical UK limited company using Xero might have the following software stack:

• Xero — bookkeeping, invoicing, bank feeds (£36-55/month)
• Payroll add-on — Xero's built-in payroll or a third-party like BrightPay or Moneysoft (£5-30/month)
• Corporation Tax software — for CT600 filing and iXBRL accounts (£200-600/year)
• Accounts production — for statutory accounts and Companies House filing (£300-800/year)
• CIS module — if you operate in construction (£10-20/month)
• VAT bridging software — if Xero's MTD integration doesn't cover your needs
• Receipt scanning — Dext, Hubdoc, or AutoEntry (£20-45/month)

Add it all up and a small limited company can easily spend £150 to £300 per month across multiple subscriptions, each with its own login, its own data silo, and its own learning curve. For accounting practices managing dozens or hundreds of clients, multiply that complexity accordingly.

The Hidden Costs Beyond Subscription Fees

The financial cost is only part of the problem. The real cost of a fragmented software stack is in the time and friction it creates:

• Data re-entry: Moving numbers from Xero into your CT600 software, then into accounts production, then back into Xero for adjustments
• Reconciliation errors: When two systems disagree on a balance, someone has to investigate and fix it
• Version confusion: Which system has the latest numbers? The trial balance in Xero or the adjusted version in your accounts production tool?
• Update fatigue: Each software vendor updates on its own schedule, sometimes breaking integrations with other tools
• Training overhead: Every new team member needs to learn multiple systems

How TaxStats Eliminates This

TaxStats was built from the ground up as a single platform that handles everything a UK business or accounting practice needs. Not through integrations or bolt-ons, but as native features built into one unified system.

Bookkeeping and Bank Feeds

Real-time bank feeds via Open Banking (TrueLayer), AI-powered transaction categorisation that learns your patterns, multi-currency support, and a full double-entry general ledger. Everything Xero does for bookkeeping, TaxStats does too.

Invoicing and Bills

Professional sales invoices with your branding, automated payment reminders, purchase invoice management with AI receipt scanning, and credit note handling. No need for a separate receipt scanning subscription.

VAT (MTD Compliant)

File VAT returns directly to HMRC through Making Tax Digital. Supports flat rate, cash accounting, and standard schemes. No bridging software required.

Payroll and Pensions

Full RTI payroll with real-time submissions to HMRC, automatic pension auto-enrolment calculations, P11D benefits reporting, and CIS for construction businesses. All built in — no separate payroll subscription needed.

Corporation Tax (CT600)

Prepare and file CT600 returns directly to HMRC with iXBRL tagging. Tax computations, capital allowances, R&D claims, and group relief — all handled within the same platform where your bookkeeping lives.

Annual Accounts and Companies House Filing

Generate FRS 105 micro-entity accounts or FRS 102 1A small company accounts directly from your ledger data. File to Companies House electronically. No separate accounts production software needed.

Feature Comparison: Xero + Add-Ons vs TaxStats

Here is what requires additional software or subscriptions in Xero versus what is included natively in TaxStats:

• CT600 filing: Xero — requires separate software | TaxStats — built in
• iXBRL accounts: Xero — requires separate software | TaxStats — built in
• Companies House filing: Xero — requires separate software | TaxStats — built in
• CIS returns: Xero — limited, often needs add-on | TaxStats — built in
• Self Assessment: Xero — not available | TaxStats — built in
• Receipt OCR: Xero — requires Dext/Hubdoc | TaxStats — built in (AI-powered)
• Practice management: Xero — requires XPM | TaxStats — built in
• Client portal: Xero — basic | TaxStats — full document exchange, signatures, messaging

The Migration Path for Xero Users

We understand that switching accounting software is a significant decision. That is why TaxStats includes a dedicated Xero migration tool that imports your chart of accounts, historical transactions, customer and supplier records, and outstanding invoices. Most migrations are completed within a few days, and you can run both systems in parallel until you are confident in the switch.

For accounting practices, we provide dedicated migration support with a named specialist who handles the entire process for your client base.

Conclusion

We built TaxStats because we were tired of the same problem every UK accountant faces: cobbling together multiple pieces of software to do what should be one job. Xero is a good bookkeeping tool, but UK businesses need more than bookkeeping. They need VAT MTD, Corporation Tax, payroll, accounts production, and Companies House filing — and they should not need five different subscriptions to get it.

TaxStats replaces Xero and its myriad of additional apps with one platform, one login, one subscription, and one source of truth for your financial data.