How much does Xero cost in the UK?
Xero's UK plans cost £18/month for Ignite, £39/month for Grow, £55/month for Comprehensive and £70/month for Ultimate, excluding VAT. These prices took effect on 1 September 2026. New customers can get 90% off for the first six months — Ignite works out at £1.80 a month during the offer.
Last verified 14 October 2026 · Feebite Editorial
Sources: Xero UK pricing plans · Xero UK pricing update
Quick Verdict
Rating: 4.3/5
Best for: UK freelancers, limited companies and small businesses that want polished cloud accounting, HMRC-ready VAT returns and an accountant who already knows the software.
Not ideal for: very price-sensitive sole traders, or anyone who needs multi-currency accounting on a budget — that only comes with the £55 Comprehensive plan and above.
Xero is one of the most established cloud accounting platforms in the UK. It is well designed and widely supported by accountants. The catch is price: after the September 2026 rise, the entry plan costs £18 a month and multi-currency starts at £55.
Xero UK Plans and Prices (from 1 September 2026)
All prices per month, excluding VAT:
| Plan | Price | 90%-off offer (first 6 months) | What you get |
|---|---|---|---|
| Simple | £7 | £0.70 | Cut-down plan, listed separately from the main grid |
| Ignite | £18 | £1.80 | Quotes and 20 invoices, 10 bills, VAT returns to HMRC, payroll at £1.50 per person, online payments at £0.20 each |
| Grow | £39 | £3.90 | Invoices and bills without those limits, 5 online bill/payroll payments, payroll for 1 person |
| Comprehensive | £55 | £5.50 | 10 online payments, payroll for 5 people, multiple currencies |
| Ultimate | £70 | £7.00 | 15 online payments, payroll for 10 people, project time and cost tracking for 10 users, multiple currencies |
The offer is for new UK customers buying their first organisation on xero.com, then the regular price applies. Company accounts and tax filing is an optional add-on at £120 a year excluding VAT.
What changed in September 2026
| Plan | Before | From 1 Sep 2026 | Change |
|---|---|---|---|
| Simple | £7 | £7 | — |
| Ignite | £16 | £18 | +£2 |
| Grow | £37 | £39 | +£2 |
| Comprehensive | £50 | £55 | +£5 |
| Ultimate | £65 | £70 | +£5 |
The rise applies to new and existing UK subscribers.
Annual cost at a glance
| Plan | Monthly | Yearly (excl. VAT) | Yearly incl. 20% VAT |
|---|---|---|---|
| Ignite | £18 | £216 | £259.20 |
| Grow | £39 | £468 | £561.60 |
| Comprehensive | £55 | £660 | £792 |
| Ultimate | £70 | £840 | £1,008 |
If you're VAT-registered you can usually reclaim the VAT, so the excl. VAT figure is your real cost. If you're not, budget for the VAT-inclusive price.
Which plan a freelancer actually needs
- Ignite (£18) — enough for most sole traders: up to 20 invoices and 10 bills a month, bank reconciliation and VAT returns.
- Grow (£39) — when you outgrow 20 invoices a month, want to pay bills from Xero, or run payroll for yourself as a limited-company director.
- Comprehensive (£55) — only if you invoice or hold money in foreign currencies and need Xero to handle multi-currency.
- Ultimate (£70) — for small teams tracking project time and costs.
Freelancers paid in USD or EUR don't necessarily need Comprehensive: many keep the books in GBP and convert income through Wise before it reaches their business bank account.
Key Facts
| Fact | Details |
|---|---|
| Category | Accounting |
| UK pricing (excl. VAT) | £18 / £39 / £55 / £70 a month, plus Simple at £7 |
| Last price change | 1 September 2026 |
| Intro offer | 90% off for the first 6 months (new UK customers) |
| Multi-currency | Comprehensive and Ultimate only |
| Free plan | No |
| HQ | New Zealand |
| Best feature | Mature cloud accounting with strong accountant adoption |
| Worst limitation | Entry price and multi-currency both went up in 2026 |
How It Compares
| Name | Fee | Best For | Verdict |
|---|---|---|---|
| QuickBooks | Subscription, varies by plan | Businesses wanting a mainstream alternative | Close competitor; often comes down to your accountant's preference |
| FreeAgent | Subscription, varies by plan | UK freelancers and contractors | Often easier to justify for one-person businesses |
Pros
- Clean, modern cloud interface
- Strong reputation in the UK, with wide accountant and bookkeeper support
- HMRC VAT returns on every main plan
- The 90%-off first six months makes it cheap to try
- Scales from sole trader to small team
Cons
- No free plan, and the entry plan rose to £18/month in September 2026
- Ignite caps you at 20 invoices and 10 bills a month
- Multi-currency starts at £55/month
- Payroll, online payments and company accounts can add to the bill
Who Should Use Xero
Perfect for: freelancers, limited companies, agencies and small businesses that want dependable cloud accounting, HMRC-ready VAT and easy collaboration with an accountant.
Skip it if: you want a free accounting tool, your books are extremely simple, or you need multi-currency on a tight budget.
How to Get Started
- Go to xero.com/uk/pricing-plans and pick a plan — most sole traders start on Ignite (£18/month).
- Check whether the 90%-off first six months offer is still running when you sign up.
- Connect your business bank accounts, add contacts and set up your invoice templates.
- Test a full month — invoicing, receipt capture, reconciliation and VAT — before deciding whether you need Grow.
Frequently Asked Questions
How much does Xero cost in the UK?
£18 (Ignite), £39 (Grow), £55 (Comprehensive) or £70 (Ultimate) a month, excluding VAT, as of 14 October 2026. Simple costs £7.
Did Xero put its UK prices up in 2026?
Yes, on 1 September 2026: Ignite +£2, Grow +£2, Comprehensive +£5 and Ultimate +£5 a month. Simple stayed at £7.
Does Xero have a free plan?
No. The cheapest option is Simple at £7 a month, and new customers can get 90% off any plan for the first six months.
Last verified 14 October 2026 against Xero's UK pricing pages. Prices exclude VAT and can change — check xero.com before you subscribe.