Xero

Cloud accounting popular with UK small businesses and accountants, with unlimited users on every plan and a deep app ecosystem.

Per employee: £1.50/emp/mo
Base fee: £37/mo (Grow)
CIS: Yes (add-on)
Global hiring: No

Best for

UK small businesses and their accountants wanting unlimited users and a deep app ecosystem.

Pricing breakdown

All prices in GBPLast verified 17 June 2026

Every 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.

Base fee plus per-employee costs, based on 4 employees. Quote-only providers are excluded.

Compare all providers

	Xero £42/mo est.	QuickBooks Online £41/mo est.	Staffology £43/mo est.	FreeAgent £33/mo est.
Per employee	£1.50/emp/mo	£4/emp/mo	£2.15/payslip	£0 (included)
Base fee	£37/mo (Grow)	£25/mo (sub + payroll)	£43/mo (up to 19)	£33/mo (or free w/ NatWest)
CIS	Yes (add-on)	Yes	Yes	Yes
Global hiring	No	No	No	No
RTI filing	Yes	Yes	Yes	Yes
Est. monthly cost	£42/mo	£41/mo	£43/mo	£33/mo
	Visit Xero	View details	View details	View details