FreeAgent vs Xero
Side-by-side comparison for Making Tax Digital for Income Tax.
FreeAgent
Free if you have a NatWest Group business account, otherwise £19–£33/mo.
FreeAgent is a polished UK-built accounting platform owned by NatWest. It's free if you hold a business current account with NatWest, Royal Bank of Scotland or Ulster Bank, or a free Mettle business account, and you make at least one transaction a month. Outside that, it's a paid subscription. Strong for sole traders and landlords wanting automation.
Visit FreeAgentXero
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
| FreeAgent | Xero | |
|---|---|---|
| Pricing & compliance | ||
| Price from | Free | £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.
FreeAgent verdict
If you already have a NatWest Group business account, or are willing to open a (free) Mettle account, this is effectively free. Otherwise it's an expensive full-fat accounting platform.
Xero verdict
Safe, popular choice. The Simple plan is where most small sole traders should start.