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Xero has increased its number of UK users and turnover by 51% in the last six months.

The large increase is largely being credited to users making the switch to Xero in order to meet HMRC’s Making Tax Digital (MTD) regulations which came into force on 1st April.

Worldwide Xero has now passed the two million customer mark, meaning a 30% increase in their user numbers.  It took Xero a decade to add its first million customers to its platform, whereas it has taken just two and half years to add their second million.

The UK customer base grew by 51% compared to the same period last year to a total of 536,000. Xero said the results were driven by the implementation of Making Tax Digital for VAT, along with building its partner channel and investment in brand and marketing. It has announced the opening of a new office in Manchester in addition to offices in London and Milton Keynes.

 

Steve Vamos, Xero CEO, said: ‘We’ve continued to perform well this half with strong topline results and improving financial performance.

‘There are a number of significant global trends contributing to Xero’s growth including industry, regulatory and technology shifts. These include the increased use of cloud technology by small businesses and the digitisation of tax and compliance systems.’

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