Key takeaways
- Xero's UK plans cost £18, £39, £55 and £70 a month excluding VAT for Ignite, Grow, Comprehensive and Ultimate, checked on 6 November 2026.
- QuickBooks UK has five plans, from Sole Trader Plus (1 user) to Advanced (25 users), but its pricing page showed no live prices when checked on 6 November 2026.
- Sage Accounting's main plans are Start, Standard and Plus; Sage's UK website blocked our checks, so we have not printed its prices or plan limits.
- Xero includes payroll for 1, 5 or 10 people on Grow, Comprehensive and Ultimate; QuickBooks sells payroll as a separate add-on.
- Xero lists every plan as MTD for Income Tax ready, and QuickBooks says all its UK plans include MTD for Income Tax.
- QuickBooks Sole Trader Plus does not submit VAT returns; VAT submission starts on Simple Start.
- Multi-currency starts on Xero Comprehensive (£55) and on QuickBooks Essentials.
Xero, QuickBooks and Sage Accounting are the three best-known cloud accounting packages for UK small businesses, and each suits a different kind of user rather than one being better overall. Xero publishes UK prices from £18 to £70 a month, QuickBooks offers five plans from a sole trader tier to 25 users, and Sage offers Start, Standard and Plus. Facts come from each provider’s own website, checked on 6 November 2026; where a site did not show a figure, we say so.
How do the three compare side by side?
The table shows what we could confirm on each provider’s UK site.
| Feature | Xero | QuickBooks | Sage |
|---|---|---|---|
| UK plans | 4 | 5 | 3 (Start, Standard, Plus) |
| Lowest price | £18 a month | Not shown | Not confirmed |
| Most users | Plan-based | 25 (Advanced) | Not confirmed |
| Payroll | Included from Grow | Paid add-on | Not confirmed |
| Multi-currency | From £55 plan | From Essentials | Not confirmed |
| MTD for Income Tax | All plans | All plans | Not confirmed |
QuickBooks’ pricing page displayed “Loading live prices” instead of figures, and sage.com returned an access error on every UK page we tried. Check both sites directly before you decide.
Xero
Xero has four UK plans, all priced excluding VAT.
| Plan | Monthly price | Payroll people included |
|---|---|---|
| Ignite | £18 | None (£1.50 each) |
| Grow | £39 | 1 |
| Comprehensive | £55 | 5 |
| Ultimate | £70 | 10 |
Ignite is capped at 20 invoices and 10 bills. Extra payroll staff cost £1.50 each, or £1 on Ultimate. Multi-currency is on Comprehensive and Ultimate, and projects on Ultimate. New customers get 90% off the base plan for six months, which does not cover add-ons, usage or payment fees. Xero says some UK banks charge for bank feeds and that it passes those fees on.
QuickBooks
QuickBooks UK, from Intuit, lists five plans. Each includes access for your accountant.
| Plan | Users | Adds |
|---|---|---|
| Sole Trader Plus | 1 | Bank feeds, MTD for Income Tax, mileage |
| Simple Start | 1 | VAT submission and pre-file check |
| Essentials | 3 | Bills, recurring invoices, multi-currency |
| Plus | 5 | Projects, inventory, budgeting |
| Advanced | 25 | Custom reports, forecasting, automation |
Payroll is sold separately in Core, Premium and Elite tiers. Advanced requires a demo booking. QuickBooks offers a 30-day free trial, and its discount for new customers cannot be combined with the trial. The QuickBooks UK site gives a sales line of 0808 168 9533, Monday to Friday, 9am to 5.30pm. For Intuit’s latest features, see Intuit’s AI agents for QuickBooks.
Sage Accounting
Sage Accounting is sold in three tiers: Start, Standard and Plus. Sage’s UK pricing and product pages returned an access error each time we tried on 6 November 2026, so we cannot confirm prices, user limits or which tier includes MTD for Income Tax.
Third-party reviews quote different figures for the same plans, which is a sign prices or offers have changed. We have not printed them. Check sage.com, or ask Sage for written plan details, before comparing. Our Sage Accounting pricing guide covers Sage in more detail.
Do all three handle Making Tax Digital?
Xero and QuickBooks say yes on their own sites. Xero lists every plan as MTD for Income Tax ready. QuickBooks says MTD for Income Tax is included in all its UK plans, but Sole Trader Plus cannot submit VAT returns.
HMRC’s MTD overview, updated 24 August 2026, says sole traders and landlords with qualifying income over £50,000 have had to use MTD for Income Tax since 6 April 2026. Use HMRC’s software finder to confirm any product, including Sage, before you sign up.
Who does each suit?
Each package fits a different profile. This is a guide to fit, not a verdict.
- Xero suits businesses that want published prices, payroll bundled into the plan and multi-currency from the £55 tier. Watch Ignite’s 20-invoice cap.
- QuickBooks suits sole traders wanting a dedicated tier, and growing businesses that may need up to 25 users. Budget separately for payroll.
- Sage suits businesses that prefer a UK-headquartered supplier or already use Sage elsewhere, such as Sage 50 or Sage Payroll. Confirm prices and limits directly.
Which applies to you?
- If you are a sole trader not registered for VAT, compare Xero Ignite with QuickBooks Sole Trader Plus. See accounting software for sole traders.
- If you are VAT-registered, rule out QuickBooks Sole Trader Plus.
- If you run payroll for up to 10 people, price Xero Grow, Comprehensive or Ultimate against QuickBooks plus its payroll add-on.
- If you trade in foreign currencies, look at Xero Comprehensive and QuickBooks Essentials and above.
- If you already use another package, read how to switch accounting software first.
What to do now
- List your users, monthly invoices, payroll headcount and VAT status.
- Get a written price from QuickBooks and Sage, since their pages did not show one.
- Take the free trial of your top two and connect your bank feed.
- Compare the full price after any offer ends. Our accounting software prices page lists other providers too.
Frequently asked questions
Which is better, Xero, QuickBooks or Sage?
None is better for everyone. Xero suits users who want bundled payroll and published prices, QuickBooks suits sole traders and businesses needing many users, and Sage suits existing Sage users.
How much does Xero cost compared with QuickBooks?
Xero costs £18 to £70 a month excluding VAT. QuickBooks’ UK pricing page did not display prices on 6 November 2026, so check it directly.
Does QuickBooks include payroll?
No. QuickBooks sells payroll as a paid add-on in Core, Premium and Elite tiers. Xero includes payroll for 1 to 10 people on Grow and above.
Is Sage Accounting MTD compatible?
Sage markets its software for Making Tax Digital, but we could not open its UK pages to confirm which plans include MTD for Income Tax. Check HMRC’s software finder.
Can I move from one to another?
Yes, but check what each provider’s import tool brings across before you commit. Switching at a VAT quarter or year end keeps the records cleaner.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.