123 Sheets vs Xero
Side-by-side comparison for Making Tax Digital for Income Tax.
123 Sheets
Cheap bridging software for spreadsheet users.
123 Sheets is a low-cost bridging tool — keep your records in Excel, it handles the HMRC submission. No bells, no whistles, just cheap compliance.
Visit 123 SheetsXero
The accountants' favourite. Simple plan is good value.
Xero is the most widely used cloud accounting platform among UK accountants. The £7/mo Simple plan is the cheapest entry from a major provider and covers most sole trader or landlord needs for MTD.
Visit XeroFull feature comparison
| 123 Sheets | Xero | |
|---|---|---|
| Pricing & compliance | ||
| Price from | £1/mo | £7/mo |
| Free tier | – | – |
| HMRC-recognised | ✓ | ✓ |
| Features | ||
| Bank feeds | – | ✓ |
| Mobile app | – | ✓ |
| Receipt scanning | – | ✓ |
| CIS support | – | – |
| Furnished holiday let support | – | – |
| VAT submission | – | ✓ |
| Bridging software | ✓ | – |
| Invoicing | – | ✓ |
| Multiple properties | – | – |
| Accountant access | – | ✓ |
| Best suited to | ||
| Sole Traders | ✓ | ✓ |
| Landlords | ✓ | ✓ |
| Airbnb / Short-let Hosts | – | – |
| CIS Subcontractors | – | – |
| Uber & Gig Drivers | – | – |
| Freelancers | – | ✓ |
| Spreadsheet Users | ✓ | – |
| Simple Affairs | ✓ | – |
| Accountants | – | ✓ |
| VAT-Registered | – | ✓ |
✓ = supported. Based on each provider's published plans; check their site for the latest details.
123 Sheets verdict
Best for people who've kept their own spreadsheets for years and just need the legal submission step.
Xero verdict
Safe, popular choice. The Simple plan is where most small sole traders should start.