Pricing note: prices below were checked on 1 November 2026 and change often. Check each vendor's pricing page before you buy. Xero: UK and US. QuickBooks: UK, US and Solopreneur. Feature statements below come from each vendor's own website, read on the day of publication.
Is Xero or QuickBooks better for freelancers and sole traders?
There is no single winner. In the US, QuickBooks now points one-person businesses to Solopreneur, while Xero is a general small-business accounting product. In the UK, both say they support Making Tax Digital for Income Tax; QuickBooks has a dedicated sole trader plan without VAT, while Xero's entry plan includes VAT returns. Our view, drawn from vendor pages.
What happened to QuickBooks Self-Employed?
Our QuickBooks Self-Employed review covers that product, so check its status first.
US. Intuit's help center says new customers are encouraged to look at other products, such as QuickBooks Solopreneur, and that the Self-Employed mobile app is no longer available for download. Intuit's product-update page calls Solopreneur the successor and says existing customers can continue their subscription or upgrade. We found no plain "discontinued" notice; a moderator reply in Intuit's community forum says Self-Employed is no longer offered. Solopreneur has its own page and is not shown as a plan on the main US pricing page.
UK. Intuit's press release says QuickBooks Sole Trader builds on the experience gained from Self-Employed; it does not say it replaces it. Intuit's UK help center has articles on switching Self-Employed customers to Sole Trader, and to QuickBooks Online or Sole Trader Plus. The UK self-employed page presents Sole Trader Plus, with Simple Start for VAT-registered users, and mentions Self-Employed only in footer notes. We could not confirm whether it is still sold in the UK.
Xero vs QuickBooks prices (checked 1 November 2026)
These are regular monthly prices, not intro offers.
UK
| Tier | Xero (excl. VAT) | QuickBooks |
|---|---|---|
| Sole trader entry | Ignite £18 | Sole Trader Plus £10 (no VAT submission) |
| With VAT submission | Ignite £18 | Simple Start £16 |
| Mid | Grow £39 | Essentials £38 |
| Higher | Comprehensive £55 | Plus £56 |
| Top | Ultimate £70 | Advanced £123 |
The tiers are our rough matching, so compare features as well as price. Xero's prices exclude VAT. QuickBooks' UK plan cards don't state whether VAT is included.
US
| Xero | Price | QuickBooks | Price |
|---|---|---|---|
| Free | $0 | ||
| Lite | $10 (price under test) | ||
| Early | $27 | Simple Start | $38 |
| Growing | $59 | Essentials | $85 |
| Established | $97 | Plus | $140 |
| Advanced | $340 |
Both vendors were advertising large intro discounts on the day we checked: 90% off for 6 months on Xero and on QuickBooks UK, and 50% off for 3 months on QuickBooks US. Offers change often, so judge the regular price you will pay from then on. Our QuickBooks page explains the Lite pricing test.
Feature comparison
| Feature | Xero | QuickBooks |
|---|---|---|
| Plans | UK: Ignite, Grow, Comprehensive, Ultimate. US: Early, Growing, Established | UK: Sole Trader Plus, Simple Start and larger plans. US: Solopreneur, plus QuickBooks Online plans |
| Invoices | Invoices and quotes | UK: estimates convert to invoices. US Solopreneur: invoices and estimates |
| Online payment on invoices | "Accept online invoice payments"; UK page names Stripe and GoCardless | UK: "Invoice and payments" |
| Bank connection | Connects to your bank; manual import if you cannot connect | UK: Open Banking. US Solopreneur: link a bank or card, transactions sorted automatically |
| Receipts | "Smart document capture" | "Receipt capture" (UK Sole Trader Plus, US Solopreneur) |
| Mileage | Expense and mileage claims listed from Grow (UK) and under Established (US) | UK: phone GPS tracking, iOS and Android only. US: automated mileage tracking |
| MTD for Income Tax (UK) | "MTD for Income Tax ready" on every UK plan card | "MTD for Income Tax ready" |
| VAT (UK) | VAT returns listed from the entry plan | Not in Sole Trader Plus; Simple Start for VAT-registered users |
| Tax estimates | Not listed on the pages we read | UK: Income Tax estimates. US: "tax-readiness tools" for Schedule C filers |
| Contractor forms (US) | "W-9 + 1099 management" on every plan card | Solopreneur lists "1099 contractor tools" |
"Not listed" means we did not find it on the pages we read.
Who should pick Xero
- You are VAT registered, or expect to be soon, and want a single product that keeps working as you grow.
- You invoice in more than one currency; multiple currencies are listed on Comprehensive in the UK and Established in the US.
- You want projects, bills or bank reconciliation in a fuller accounting product rather than a sole-trader-only tool.
Who should pick QuickBooks
- UK: you are a sole trader who is not VAT registered and has no employees, and you want a plan built around Income Tax, with mileage, receipt capture and tax estimates.
- US: you run a one-person business, file Schedule C, and want Solopreneur's automatic sorting of business and personal expenses, tax tools and mobile app.
- You are an existing Self-Employed customer and prefer Intuit's switching route.
Where each falls short
Xero
- Several freelancer features sit on higher plans: multiple currencies, expense and mileage claims, and project tracking.
- We did not find a tax-estimate feature on the pages we read.
- Xero's blog describes a plan called Xero Simple for sole traders and landlords working with accountants. It was not shown as a plan on the UK pricing page we read, so ask Xero whether you can buy it directly.
QuickBooks
- The sole-trader line is in transition, and the UK status of Self-Employed is unclear.
- Sole Trader Plus is limited by design: no VAT submission, and not for employees or payroll. Intuit says that if you expect to start paying VAT or become a limited company, you will need a different plan.
- In the US, Intuit's help article says customising the chart of accounts needs QuickBooks Online Simple Start.
- Switching from Self-Employed does not carry everything. Intuit lists third-party app integrations and tags as not moving, and recommends downloading your reports first.
How to choose
- UK and VAT registered: compare Xero's entry plan with QuickBooks Simple Start. Sole Trader Plus is not designed for you.
- UK, no VAT, no employees: Sole Trader Plus is the closer fit on features. Compare it with Xero's entry plan.
- US one-person business: Solopreneur is Intuit's current offer for you. Look at Xero if you need multiple currencies, projects or fuller bookkeeping.
- Making Tax Digital: both claim support, but check your own obligation with HMRC.
For a simpler, invoicing-led setup, see our FreshBooks and Wave reviews, and confirm country support on their sites. Read our Xero review for more detail.
Sources checked (November 2026)
- Xero UK pricing and Xero US pricing: plan prices and offers
- QuickBooks UK pricing: plan prices and offer
- QuickBooks US pricing and QuickBooks Solopreneur: plan prices, offer and Lite pricing notice
- Prices checked on 1 November 2026.