Xero vs QuickBooks: which is better for UK sole traders?
Quick answer
Xero is the better pick for most sole traders and landlords. Its Simple plan costs £7 a month, covers rental income from several properties and grows into VAT and CIS. QuickBooks (from £10 a month) suits sole traders on the move who want strong receipt capture and GPS mileage tracking on their phone.
Xero and QuickBooks are the two biggest names in cloud accounting. Both work with Making Tax Digital (MTD) for Income Tax, so both can keep your digital records and send quarterly updates to HMRC. The real differences are price, landlord support and how each works on your phone. We compared them based on our review of features, pricing and user ratings. Every price was checked on the provider's own website in October 2026.
Not sure when MTD starts for you? It applies from 6 April 2027 if your qualifying income is over £30,000 (GOV.UK). Our Do I need MTD? checker gives you your date in 30 seconds.
Xero vs QuickBooks at a glance
| Software | Price (checked October 2026) | MTD for Income Tax | Free tier | Landlord features | VAT returns | CIS | Bank feeds | App rating | Best for | Link |
|---|---|---|---|---|---|---|---|---|---|---|
| Xero | From £7/month (Simple) | Yes | No (1 month free trial) | Yes | Yes (not on Simple) | Yes | Yes | 4.8 iOS / 4.5 Android | Sole traders who expect to grow, register for VAT or hire | Visit site |
| QuickBooks | From £10/month (Sole Trader Plus) | Yes | No (30-day trial) | Single property only on Sole Trader Plus | Yes (not on Sole Trader Plus) | Subcontractors on Sole Trader; full CIS on higher plans | Yes | 4.7 iOS / 4.6 Android | Sole traders who want strong mobile receipt capture and mileage tracking | Visit site |
Prices exclude VAT unless stated and were checked on each provider's website in October 2026. Introductory offers change often, so always confirm the live price. App ratings are from the UK App Store and Google Play in October 2026.
Xero vs QuickBooks head to head
| Feature | Xero | QuickBooks | Winner |
|---|---|---|---|
| Price | From £7 a month (Simple) | From £10 a month (Sole Trader Plus) | Xero |
| Free option | No, 1 month free trial | No, 30-day trial | Neither |
| MTD for Income Tax | Yes | Yes | Tie |
| Landlords | Yes | Single property only on Sole Trader Plus | Xero |
| VAT returns | Yes, from Ignite (£18) | Yes, from Simple Start (£16) | QuickBooks (cheaper) |
| CIS | Yes | Subcontractors on Sole Trader; full CIS on higher plans | Tie |
| Bank feeds | Yes | Yes | Tie |
| Mobile app rating | 4.8 iOS / 4.5 Android | 4.7 iOS / 4.6 Android | Tie |
| Accountant familiarity | Very widely known | Widely known | Tie |
| Our score | 4.6/5 | 4.4/5 | Xero |
Prices are monthly, ex VAT, checked in October 2026. Accountant familiarity is our general view, not survey data.
Is Xero cheaper than QuickBooks?
On the entry plans, yes. Xero Simple costs £7 a month and QuickBooks Sole Trader Plus costs £10 a month, both ex VAT. Over a year that is £84 against £120, before any offers.
The picture changes once you register for VAT. Xero Simple does not do VAT returns, so you would move to Ignite at £18. QuickBooks Simple Start does VAT for £16. Here are the full prices:
- Xero: Simple £7, Ignite £18, Grow £39, Comprehensive £55, Ultimate £70 a month, all ex VAT. Promotional discounts often run for new customers.
- QuickBooks: Sole Trader Plus £10, Simple Start £16, Essentials £38 a month, ex VAT. Intro offers apply to new customers only. Check the live price on the QuickBooks site.
Both run introductory discounts for new customers, and these change often. Always check the live price before you sign up.
Which is better for MTD and landlords?
Both are on HMRC's list of compatible software. Both keep digital records and send quarterly updates, which are due by 7 August, 7 November, 7 February and 7 May (GOV.UK). Both also handle your end-of-year tax return.
The big difference is rental income. Xero's Simple plan covers self-employment and property income. QuickBooks Sole Trader Plus only covers a single property.
An example. Priya (an illustration, not a real customer) is a self-employed graphic designer. In 2025 to 2026 she earns £24,000 from design work and £9,000 in rent from two flats. Her qualifying income is £33,000, because it counts gross income from self-employment and property before expenses (GOV.UK). That is over £30,000, so she joins MTD from 6 April 2027. With two flats, QuickBooks Sole Trader Plus would not cover her. Xero Simple at £7 a month would.
If you own a property jointly, only your share of the rent counts. Our MTD for landlords guide explains how it works.
Is Xero or QuickBooks easier to use?
We base this on features and app ratings, not hands-on testing. Both apps are well rated: Xero scores 4.8 on iOS and 4.5 on Android, and QuickBooks scores 4.7 and 4.6.
QuickBooks is built around your phone. You can snap receipts, track mileage with GPS and see a live tax estimate. That suits tradespeople and drivers who are rarely at a desk.
Xero's Simple plan is designed for sole traders and landlords, so it keeps things focused. Bank feeds (your bank transactions flow in automatically) are included on both. On Xero's cheapest plans, automatic bank reconciliation is a paid add-on, so check what you need.
Choose Xero if
- you want the cheapest entry plan of the two (£7 a month)
- you let out two or more properties
- you expect to grow, register for VAT or hire staff later
- your accountant already uses Xero
Read our full Xero review.
Choose QuickBooks if
- you drive a lot for work and want GPS mileage tracking
- you want to photograph receipts on the go
- you are VAT registered and want the cheaper VAT plan (£16 against £18)
- you are a CIS subcontractor and want CIS on the sole trader plan
Read our full QuickBooks review.
Try QuickBooks free for 30 days
Who should choose neither?
Who should not choose Xero or QuickBooks
- NatWest, RBS, Ulster Bank or Mettle customers, because FreeAgent is free for you. See FreeAgent vs Xero.
- Anyone who wants to pay nothing, because Clear Books and Sage Sole Trader have free plans. See our free MTD software guide.
- Spreadsheet fans, who can keep their spreadsheet and add bridging software for about £20 a year.
- People with qualifying income of £20,000 or less, who are currently exempt (GOV.UK).
Frequently asked questions
Is Xero or QuickBooks better for MTD?
Both work with MTD for Income Tax and can send your quarterly updates to HMRC. Xero is the better fit for most people because its £7 Simple plan is cheaper and covers several rental properties. QuickBooks is better if you mainly want a phone app with mileage tracking.
Is Xero cheaper than QuickBooks?
On the cheapest plans, yes. Xero Simple is £7 a month and QuickBooks Sole Trader Plus is £10 a month, both ex VAT. Once you need VAT returns, QuickBooks Simple Start (£16) is a little cheaper than Xero Ignite (£18). Prices were checked in October 2026 and intro offers change often.
Can landlords use QuickBooks for MTD?
Yes, but the Sole Trader Plus plan only covers a single property. If you let out two or more properties, you will need a higher QuickBooks plan or a different product such as Xero. See our best landlord software guide.
Do accountants prefer Xero or QuickBooks?
Most UK accountants know both well, so either is a safe choice if you work with one. If you already have an accountant, ask which they prefer, because sharing your books is easier when you both use the same software.
Can I switch from QuickBooks to Xero later?
Yes. Both are cloud software, and many people switch between them. It is easiest to switch at the start of a tax year or a quarter, so your records for each period sit in one place. Keep a copy of your old records.
When do I need MTD software?
From 6 April 2027 if your qualifying income in 2025 to 2026 is over £30,000, and from 6 April 2028 if it is over £20,000. Qualifying income is your gross self-employment and property income before expenses. Use our Do I need MTD? checker.
This page is general information, not personal tax, legal or financial advice. Tax rules can change and your situation may differ. For advice on your own affairs, speak to a qualified accountant or tax adviser, or check GOV.UK.