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 XeroAt a glance
| FreeAgent | Xero | |
|---|---|---|
| Price from | Free | £7/mo |
| Free tier | Yes | No |
| HMRC-recognised | Yes | Yes |
| Best for | Sole Traders, Landlords, Freelancers, VAT-Registered | Sole Traders, Landlords, Freelancers, VAT-Registered |
| Features | Bank feeds, Mobile app, Receipt scanning, Invoicing, Multiple properties, Accountant access, VAT submission | Bank feeds, Mobile app, Receipt scanning, Invoicing, Accountant access, VAT submission |
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.