Xero vs QuickBooks UK (2026)
Two of the UK's most popular accounting platforms go head-to-head. We compare pricing, features, MTD compliance, payroll, and support to help you make the right choice.
Our Verdict
Choose Xero if you need unlimited users, a large integration ecosystem, strong inventory management, or are a growing business with complex needs. Choose QuickBooks if you're a sole trader, want built-in payroll at a lower price, need phone support, or value a best-in-class mobile app.
Score Comparison
Feature Comparison
| Feature | Xero | QuickBooks | Winner |
|---|---|---|---|
| Starting Price | £16/mo | £10/mo | QuickBooks |
| Free Trial | 30 days | 30 days | Tie |
| MTD for VAT | ✓ All plans | ✓ All plans | Tie |
| MTD for Income Tax | ✓ Included | ✓ Included | Tie |
| Payroll (built-in) | Add-on (£5/mo) | ✓ Included | QuickBooks |
| Unlimited Users | ✓ All plans | Limited by plan | Xero |
| Multi-Currency | ✓ Premium plan | Advanced only | Xero |
| App Integrations | 1,000+ | 650+ | Xero |
| Inventory Management | ✓ All plans | Plus plan+ | Xero |
| Bank Feeds | ✓ Excellent | ✓ Good | Xero |
| Mobile App | Good (4.3★) | Excellent (4.7★) | QuickBooks |
| Phone Support | ✗ No | ✓ Yes | QuickBooks |
| Self Assessment | Via accountant | ✓ Sole Trader plan | QuickBooks |
| Trustpilot Score | 4.2/5 | 3.8/5 | Xero |
Xero
Pros
- Largest app marketplace (1,000+ integrations)
- Excellent bank feeds and reconciliation
- Full MTD for VAT and Income Tax compliance
- Unlimited users on all plans
- Strong multi-currency support
- Robust inventory management
Cons
- No built-in payroll on Starter plan
- Phone support not available
- Can be expensive for larger teams
QuickBooks
Pros
- Lower starting price (£10/mo for sole traders)
- Built-in payroll on most plans
- Excellent mobile app
- Strong Self Assessment support
- Good customer support (phone & chat)
- Simple, clean interface
Cons
- Fewer third-party integrations than Xero
- User limits on lower plans
- Multi-currency only on Advanced
Pricing Plans Compared
XEXero Pricing
- 20 invoices/mo
- 5 bills/mo
- Bank reconciliation
- MTD VAT
- Unlimited invoices
- Unlimited bills
- Payroll (1 employee)
- Expense claims
- Everything in Standard
- Multi-currency
- Payroll (unlimited)
- Analytics Plus
QBQuickBooks Pricing
- Self Assessment
- Invoicing
- Mileage tracking
- MTD VAT
- 1 user
- Invoicing
- Bank feeds
- VAT returns
- 3 users
- Bill management
- Payroll (3 employees)
- Multi-currency
- 5 users
- Inventory
- Project tracking
- Payroll (unlimited)
Frequently Asked Questions
Is Xero or QuickBooks better for UK small businesses?
Xero is generally better for growing UK businesses that need extensive integrations, unlimited users, and strong inventory management. QuickBooks is better value for sole traders and small businesses that want built-in payroll, a lower starting price, and phone support.
Which is cheaper, Xero or QuickBooks?
QuickBooks is cheaper at the entry level, starting at £10/mo for sole traders versus Xero's £16/mo Starter plan. However, Xero's Standard plan (£33/mo) includes unlimited users, which can make it better value for teams.
Is Xero or QuickBooks better for MTD?
Both Xero and QuickBooks are fully MTD-compliant for VAT and are preparing for MTD for Income Tax (April 2026). Both submit directly to HMRC. Xero has a slight edge for MTD Income Tax preparation due to its broader feature set.
Can I switch from QuickBooks to Xero (or vice versa)?
Yes — both platforms support CSV data export and import. You can migrate your chart of accounts, contacts, and historical transactions. It's easiest to switch at the start of a new financial year. Both providers offer migration support.
Which has better payroll, Xero or QuickBooks?
QuickBooks includes payroll on most plans at no extra cost. Xero charges an additional £5/mo for Xero Payroll (up to 1 employee on Standard, unlimited on Premium). For businesses with employees, QuickBooks often works out cheaper.