Xero vs QuickBooks
Side-by-side comparison for Making Tax Digital for Income Tax.
Xero
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 XeroQuickBooks
Big US brand with strong UK MTD support.
QuickBooks Online is Intuit's cloud accounting product. Regular heavy discounts (often 90% off for 6 months) make it effectively cheap to start. Full MTD VAT and Income Tax support.
Visit QuickBooksFull feature comparison
| Xero | QuickBooks | |
|---|---|---|
| Pricing & compliance | ||
| Price from | £7/mo | £12/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.
Xero verdict
Safe, popular choice. The Simple plan is where most small sole traders should start.
QuickBooks verdict
A strong all-rounder, especially for CIS subcontractors. Watch the post-intro pricing.