Xero vs Sage UK (2026)
Two leading UK accounting platforms compared on pricing, features, MTD compliance, and support.
Our Verdict
Choose Xero if you want a modern interface, unlimited users, and a large integration ecosystem. Choose Sage if you want UK-based phone support, a trusted brand your accountant already uses, or strong built-in payroll.
Xero
Pros
- 1,000+ integrations
- Unlimited users on all plans
- Excellent bank feeds
- Strong MTD compliance
- Modern, intuitive UI
Cons
- No phone support
- Payroll is an add-on on Starter
- Can be pricey for larger teams
Sage Accounting
Pros
- UK-headquartered company
- Strong payroll integration
- Good phone support
- Established brand trusted by accountants
- AutoEntry for receipt capture
Cons
- Fewer integrations than Xero
- Interface feels dated
- Limited multi-currency on lower plans
Frequently Asked Questions
Is Xero or Sage better for UK businesses?
Xero is generally better for businesses that need integrations, unlimited users, and a modern interface. Sage is better for businesses that prefer UK-based support, have an existing accountant who uses Sage, or need strong payroll integration.
Which is cheaper, Xero or Sage?
Sage starts at £15/mo versus Xero's £16/mo, making them very similar in price. However, Sage includes payroll on its standard plan, which can make it better value for businesses with employees.
Is Sage or Xero better for MTD?
Both are fully MTD-compliant for VAT and are prepared for MTD for Income Tax. Xero has a slight edge due to its broader ecosystem and more frequent updates.
Do accountants prefer Xero or Sage?
Both are widely used by UK accountants. Xero has grown significantly in popularity and is now the most common platform among UK cloud accountants. Sage has a longer history and remains popular among traditional accounting firms.