Xero
£16/mo est.
- Entry plan
- £16/mo (Ignite)
- Users included
- Unlimited
- UK payroll
- Yes
- VAT/MTD
- Yes
- Bank feeds
- Yes
- Est. monthly cost
- £16/mo
Xero
Cloud accounting popular with UK small businesses and accountants, with unlimited users on every plan and a deep app ecosystem.
- Entry plan
- £16/mo (Ignite)
- Users
- Unlimited
- Payroll
- ~£1.50/emp
- Bank feeds
- Yes
Best for
UK small businesses and their accountants wanting unlimited users and a deep app ecosystem.
How much does Xero cost per month?
Xero plans cost from £16/mo (Ignite) to £65/mo (Ultimate) in 2026. Payroll is included on every plan at no extra per-employee cost.
Pricing breakdown
All prices in GBPLast verified 17 June 2026Every fee we track, grouped by where it applies.
Strengths and trade-offs
Pros
- Unlimited users on every plan
- HMRC-recognised for MTD for VAT
- Hubdoc receipt capture included
- Largest UK app marketplace and accountant network
Cons
- Ignite plan caps invoices at around 20/mo
- Multi-currency only on Comprehensive and above
- Native inventory is basic
About Xero
Xero is a cloud accounting platform widely used by UK small businesses and their accountants. It offers tiered GBP plans from Ignite to Ultimate, with unlimited users on every plan and no per-user charge. It is HMRC-recognised for Making Tax Digital for VAT, includes Hubdoc receipt capture, and has the largest UK app marketplace. The entry Ignite plan caps invoices at around 20 per month, so growing businesses usually move up to Grow.
Xero was founded in 2006 and is headquartered in Wellington, New Zealand.
How Xero compares
Side-by-side with the closest alternatives by estimated cost.
Subscription plus payroll add-on, based on the entry plan with no employees. Processing fees not included.
QuickBooks Online
£16/mo est.
- Entry plan
- £16/mo (Simple Start)
- Users included
- 1 (Simple Start)
- UK payroll
- Yes (add-on)
- VAT/MTD
- Yes
- Bank feeds
- Yes
- Est. monthly cost
- £16/mo
Sage
£18/mo est.
- Entry plan
- £18/mo (Accounting Start)
- Users included
- 1 (Start)
- UK payroll
- Yes (add-on)
- VAT/MTD
- Yes
- Bank feeds
- Yes
- Est. monthly cost
- £18/mo
FreeAgent
£19/mo est.
- Entry plan
- £19/mo (Sole Trader)
- Users included
- Unlimited
- UK payroll
- Yes (included)
- VAT/MTD
- Yes
- Bank feeds
- Yes
- Est. monthly cost
- £19/mo
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