Last Updated on September 30, 2026
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Xero, QuickBooks, Sage and FreeAgent all open with a discount. Xero, QuickBooks and Sage take 90% off for the first six months. That makes the first-year price close to meaningless as a comparison. The number that tells you what you will pay is month seven and year two.
We read the UK pricing pages for Xero and five cheaper routes on 30 September 2026. Year two on Xero Grow costs £468 before VAT. The same year on Zoho Books Standard, billed annually, costs £120. For businesses banking with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle, FreeAgent costs nothing at all.
The quick verdict
You bank with NatWest, RBS, Ulster Bank or Mettle: use FreeAgent. It is free for as long as you keep the account (Mettle asks for at least one transaction a month). Nothing on this page beats it.
Sole trader with simple books: QuickBooks Sole Trader Plus at £10 a month. Year two costs £120, against £216 for Xero Ignite.
Lowest full price for a small limited company: Zoho Books Standard at £10 a month billed annually, or £12 monthly. Zoho also has a free plan.
Stay on Xero if your accountant works in Xero and would charge you more to work in something else. Ask them the figure before you move. A £300 saving on software can disappear into extra accountancy fees.
Check current Xero pricing if you are staying.
Month seven: what each plan costs once the offer ends
Monthly billing, excluding VAT, read from each vendor’s own UK pricing page on 30 September 2026. Introductory offers apply to new customers.
| Software | Entry plan | Next plan | Introductory offer |
|---|---|---|---|
| Xero | Ignite £18 (20 invoices, 10 bills a month) | Grow £39 | 90% off for 6 months |
| QuickBooks | Sole Trader Plus £10 | Simple Start £16 | 90% off for 6 months |
| Sage Accounting | Start £20 (1 user) | Standard £43 (3 users) | 90% off for 6 months |
| FreeAgent | Sole trader £19 | Limited company £33 | 50% off for 6 months; free with NatWest, RBS, Ulster Bank or Mettle |
| Zoho Books | Free plan £0 | Standard £12 (£10 billed annually) | None shown |
FreeAgent prices by business type: £19 for a sole trader, £27 for a partnership and £33 for a limited company, with one full product at each price.
Year one and year two, side by side
| Route | Year one (with offer) | Year two (full price) |
|---|---|---|
| Xero Ignite | £118.80 | £216 |
| Xero Grow | £257.40 | £468 |
| QuickBooks Sole Trader Plus | £66 | £120 |
| QuickBooks Simple Start | £105.60 | £192 |
| Sage Accounting Start | £132 | £240 |
| FreeAgent, sole trader | £171 | £228 |
| FreeAgent, limited company (annual billing) | £165 | £330 |
| FreeAgent with NatWest, RBS, Ulster Bank or Mettle | £0 | £0 |
| Zoho Books Standard (annual billing) | £120 | £120 |
| Zoho Books Free | £0 | £0 |
Year one flatters every package with a 90% offer. Year two is the price you will actually live with. On that measure Xero Grow is the dearest route in the table, and the gap to Zoho Books Standard is £348 a year.
The trap in each price
Xero: the invoice cap on Ignite
Ignite allows 20 invoices and 10 bills a month. Send a 21st invoice in a month and you need Grow at £39, more than double. Payroll on Ignite is charged at £1.50 per person. Xero raised prices in September 2025, recorded in our Software Price Index, and again on 1 September 2026, recorded in our accounting software guide.
QuickBooks: Sole Trader Plus is for sole traders
The £10 plan is named and built for self-employed people filing Self Assessment. A limited company should price Simple Start at £16 or above. QuickBooks Plus rose about 38% in January 2026, which our Software Price Index recorded.
FreeAgent: free depends on the bank
The free route lasts as long as you keep the business current account with NatWest, RBS or Ulster Bank, or keep making at least one transaction a month through Mettle. Close the account and you pay the standard price. Our FreeAgent review covers the conditions.
Zoho Books: read the free plan’s terms
Zoho’s pricing page lists the free plan’s features, including MTD VAT returns, SA100 filing and MTD for Income Tax, but on 30 September 2026 we could not find a stated usage limit on that page. Read the sign-up terms before you rely on it for a growing business.
Making Tax Digital: check before you switch
Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000, and the threshold falls to £30,000 in April 2027. Check the product against HMRC’s own list of compatible software before you move, and our MTD software cost guide for what each one charges.
Which route fits, by stage
Start. A sole trader or new company with a handful of invoices a month. Check your bank first: if it is NatWest, RBS, Ulster Bank or Mettle, FreeAgent is free. Otherwise QuickBooks Sole Trader Plus or Zoho Books Free keeps the cost near zero.
Build. A limited company with regular invoicing, bills and perhaps one employee. Price month seven. Zoho Books Standard and FreeAgent are both well under Xero Grow at full price.
Scale. Several users and an accountant working inside your books. The software price matters less than the fit with your accountant’s practice. Ask them what each option would cost you in their fees.
What this page did not check
We read published prices and plan limits from each vendor’s UK pricing page. We did not test the products or check them against HMRC’s compatible-software list for this page. Sage’s plan limits beyond users were not re-read.
The takeaway
Compare accounting software on year two, because year one is a discount. On prices read on 30 September 2026, year two on Xero Grow cost £468 before VAT and Zoho Books Standard cost £120. If you bank with NatWest, RBS, Ulster Bank or Mettle, check FreeAgent before you compare anything else.
Related: Xero vs QuickBooks, the best accounting software for UK businesses and our FreeAgent review.
Common questions
What is the cheapest alternative to Xero in the UK?
If you bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle, FreeAgent is free. Otherwise, on prices read on 30 September 2026, Zoho Books has a free plan and its Standard plan costs £10 a month billed annually, and QuickBooks Sole Trader Plus costs £10 a month for sole traders. All excluding VAT.
How much does Xero cost after the offer ends?
On 30 September 2026, Xero’s UK prices after the six-month 90% offer were £18 a month for Ignite, £39 for Grow, £55 for Comprehensive and £70 for Ultimate, excluding VAT.
What are the limits on Xero Ignite?
Xero’s pricing page on 30 September 2026 listed Ignite with quotes and 20 invoices a month and 10 bills a month. Payroll on Ignite is charged at £1.50 per person.
Is FreeAgent free with NatWest?
Yes. FreeAgent’s pricing page says it is free if you have a business current account with NatWest, Royal Bank of Scotland or Ulster Bank, for as long as you keep the account, or a Mettle account with at least one transaction a month.
Should I leave Xero to save money?
Check two numbers first: the year-two price of the alternative, and what your accountant would charge if you moved. On 30 September 2026, Xero Grow cost £468 a year before VAT at full price and Zoho Books Standard cost £120 billed annually, a gap of £348.
Sources
All read by Whito from a UK connection on 30 September 2026: xero.com/uk/pricing-plans; quickbooks.intuit.com/uk/pricing; sage.com/en-gb (Sage Accounting pricing); freeagent.com/pricing (each business type); zoho.com/uk/books/pricing. MTD for Income Tax dates from GOV.UK, as recorded in our accounting software guide. QuickBooks Plus price rise from the UK Business Software Price Index, July 2026.
