Xero vs Sage Accounting
Side-by-side comparison for Making Tax Digital for Income Tax.
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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 XeroSage Accounting
Established UK brand, trusted by accountants.
Sage's cloud accounting product. Solid, enterprise-backed, wide accountant adoption. Has a dedicated landlord flow.
Visit Sage AccountingFull feature comparison
| Xero | Sage Accounting | |
|---|---|---|
| Pricing & compliance | ||
| Price from | £7/mo | £15/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.
Sage Accounting verdict
Solid choice if your accountant prefers Sage. Otherwise Xero gives you more for less.
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