Key takeaways
- Xero's five UK plans cost £7, £18, £39, £55 and £70 a month excluding VAT: Simple, Ignite, Grow, Comprehensive and Ultimate.
- Xero raised its Ignite, Grow, Comprehensive and Ultimate prices for new and existing UK subscribers on 1 September 2026; Simple stayed at £7.
- The Simple plan is only for businesses that are not VAT registered, such as sole traders and landlords, and does not submit VAT returns.
- All Xero UK plans support Making Tax Digital for Income Tax, which applies to sole traders and landlords with qualifying income over £30,000 from 6 April 2027.
- Payroll is included for 1 person on Grow, 5 on Comprehensive and 10 on Ultimate; Ignite charges £1.50 per person.
- Xero's add-ons include CIS returns at £5 a month and company accounts and tax at £120 a year, both excluding VAT.
- From 1 September 2026 Xero's multi-organisation discount no longer applies to subscriptions.
Xero has five UK plans costing £7 to £70 a month plus VAT: Simple £7, Ignite £18, Grow £39, Comprehensive £55 and Ultimate £70. The four paid-for plans above Simple went up on 1 September 2026 for new and existing subscribers. All prices on this page come from Xero’s own UK pricing pages, checked on 6 November 2026.
How much does Xero cost per month?
Xero costs between £7 and £70 a month excluding VAT, depending on the plan. The table lists the plans by monthly price.
| Plan | Price a month (ex VAT) | Inc 20% VAT |
|---|---|---|
| Simple | £7 | £8.40 |
| Ignite | £18 | £21.60 |
| Grow | £39 | £46.80 |
| Comprehensive | £55 | £66.00 |
| Ultimate | £70 | £84.00 |
Xero shows prices excluding VAT; the VAT figures are our calculation at 20%. Subscriptions renew monthly until you cancel, and Xero says it can change prices at any time.
What changed on 1 September 2026?
Xero’s pricing update page confirms a rise for new and existing UK subscribers from 1 September 2026.
| Plan | Old price | New price |
|---|---|---|
| Simple | £7 | £7 (no change) |
| Ignite | £16 | £18 |
| Grow | £37 | £39 |
| Comprehensive | £50 | £55 |
| Ultimate | £65 | £70 |
From the same date the multi-organisation discount no longer applies. Existing discounts and promo codes still run until they expire.
What does each Xero plan include?
Each plan adds features and included users on top of the one below it. These are the main differences on Xero’s pricing page.
- Simple (£7): quotes and 10 invoices, bank reconciliation, receipt capture, CIS subcontractor calculations and MTD for Income Tax. No bills, VAT returns or payroll.
- Ignite (£18): quotes and 20 invoices, 10 bills, VAT returns, a 30-day cash flow forecast. Payroll costs £1.50 per person and auto-reconcile is a £3.50 add-on.
- Grow (£39): unlimited invoices, automatic bill entry, auto-reconcile, payroll for 1 person, expenses for 1 user, 5 bill payments, a 60-day forecast.
- Comprehensive (£55): everything in Grow plus multi-currency, payroll for 5 people, expenses for 5 users, 3 budgets, 10 bill payments, a 90-day forecast.
- Ultimate (£70): everything in Comprehensive plus projects for 10 users, payroll for 10 people (£1 per extra person), expenses for 10 users, KPIs and benchmarks, 15 bill payments, a 180-day forecast.
Which Xero plan applies to you?
The plan you need depends mostly on VAT, invoice volume and staff. Use this decision list.
- If you are not VAT registered and send 10 invoices a month or fewer, Simple covers the basics, including MTD for Income Tax.
- If you are VAT registered, you need Ignite or above, because Xero’s Simple plan does not submit VAT returns.
- If you send more than 20 invoices a month, you need Grow or above, since Ignite caps invoices at 20.
- If you invoice or pay in foreign currencies, multi-currency starts at Comprehensive.
- If you track job profitability, projects are only on Ultimate.
- If you run payroll for a few staff, compare Ignite at £1.50 per person with the people included on Grow and above.
What do Xero add-ons cost?
Xero charges extra for some features, on top of the plan price. All prices exclude VAT.
| Add-on | Price | Plans |
|---|---|---|
| CIS contractor returns | £5 a month | All |
| Auto-reconcile | £3.50 a month | Simple, Ignite |
| Company accounts and tax | £120 a year | All except Simple |
| Extra expense users | £2.50 each | Grow and above |
| Extra project users | £5 each | Ultimate |
| Extra bill or payroll payments | £0.20 each | All with payments |
Online card payments on invoices carry separate payment provider fees. If you are a contractor in the construction industry, see our guide to CIS for contractors.
How much does Xero cost in the first year?
New customers get an introductory discount for the first six months. On 6 November 2026 Xero’s pricing page showed 90% off the base plan for six months, for the first organisation only, excluding add-ons and fees.
| Plan | First year with offer | Full price year |
|---|---|---|
| Simple | £46.20 | £84 |
| Ignite | £118.80 | £216 |
| Grow | £257.40 | £468 |
| Comprehensive | £363 | £660 |
| Ultimate | £462 | £840 |
First-year figures are six months at the discounted price plus six months at full price, excluding VAT. Xero can change or withdraw the offer at any time, so check before you sign up.
Is Xero ready for Making Tax Digital?
Yes. Xero says all its UK plans, including Simple, are ready for MTD for Income Tax, and every plan except Simple submits VAT returns. HMRC’s eligibility guidance, updated 26 March 2026, sets these start dates:
- income over £50,000 in 2024 to 2025: from 6 April 2026
- income over £30,000 in 2025 to 2026: from 6 April 2027
- income over £20,000 in 2026 to 2027: from 6 April 2028
HMRC does not recommend any product. Check any package against HMRC’s software finder. Read more on the £30,000 MTD threshold, compare packages in our accounting software prices table, or see Hnry vs Xero vs Sage.
What to do now
- Check your last invoice. Existing subscribers have paid the new prices since 1 September 2026.
- Match the plan to your usage. Count invoices, bills and payroll staff before upgrading.
- Review multi-organisation billing. That discount ended on 1 September 2026.
- Ask your accountant. Many firms have partner pricing, which this page does not cover.
Frequently asked questions
How much is Xero a month in the UK?
Xero costs £7 (Simple), £18 (Ignite), £39 (Grow), £55 (Comprehensive) or £70 (Ultimate) a month, excluding VAT, from 1 September 2026.
Did Xero put its prices up in 2026?
Yes. From 1 September 2026, Ignite rose by £2, Grow by £2, Comprehensive by £5 and Ultimate by £5 a month. Simple stayed at £7.
Can I use Xero Simple if I am VAT registered?
No. Xero’s Simple plan is for businesses that are not VAT registered and does not submit VAT returns. VAT registered businesses need Ignite or above.
Does Xero include payroll?
Grow includes payroll for 1 person, Comprehensive for 5 and Ultimate for 10. Ignite charges £1.50 per person, and Simple has no payroll.
Do Xero prices include VAT?
No. Xero’s UK prices are shown excluding VAT, so a VAT registered business can usually reclaim it and others pay 20% on top.
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.