What does accounting
software cost in the UK?
Compare the regular bill, the introductory offer and the plan you actually need.
A low introductory price
is only part of the bill.
Xero Simple and QuickBooks Sole Trader Plus are entry plans without VAT submission. VAT-capable plans start at £18/month for Xero Ignite and £16/month for QuickBooks Simple Start in the checked UK pricing. FreeAgent’s monthly base price depends on business type, with a separate bank-funded route for eligible accounts.
There is no single cheapest plan for every business. A price comparison needs the right business type, VAT workflow, invoice volume and number of users. The table below records the vendor’s published UK base prices on 13 October 2026. Renewal prices matter even when the first invoice is heavily discounted.
Published UK base prices
Monthly subscriptions, excluding VAT, payroll extras, payment fees and other add-ons. The 12-month column assumes the checked standard price stays unchanged and does not include promotions. This is a source snapshot, not a checkout quote.
| Product / plan | Standard base | Published intro offer | 12 months at standard price | VAT submission | Plan considerations |
|---|---|---|---|---|---|
| Xero Simple ↗ | £7.00/month | £0.70/month for 6 months, if eligible | £84.00 | Not included | 10-invoice cap; confirm counting rules. |
| Xero Ignite ↗ | £18.00/month | £1.80/month for 6 months, if eligible | £216.00 | Included | 20-invoice cap, 10-bill cap; confirm counting rules. |
| Xero Grow ↗ | £39.00/month | £3.90/month for 6 months, if eligible | £468.00 | Included | Higher-volume invoicing and bills. 1 payroll person included. |
| Xero Comprehensive ↗ | £55.00/month | £5.50/month for 6 months, if eligible | £660.00 | Included | Higher-volume invoicing and bills. Multicurrency. 5 payroll people included. |
| Xero Ultimate ↗ | £70.00/month | £7.00/month for 6 months, if eligible | £840.00 | Included | Higher-volume invoicing and bills. Multicurrency. 10 payroll people included. |
| QuickBooks Online Sole Trader Plus ↗ | £10.00/month | £1.00/month for 6 months, if eligible | £120.00 | Not included | 1 business user plus accountant access. |
| QuickBooks Online Simple Start ↗ | £16.00/month | £1.60/month for 6 months, if eligible | £192.00 | Included | 1 business user plus accountant access. |
| QuickBooks Online Essentials ↗ | £38.00/month | £3.80/month for 6 months, if eligible | £456.00 | Included | 3 business users plus accountant access. Multicurrency. |
| QuickBooks Online Plus ↗ | £56.00/month | £5.60/month for 6 months, if eligible | £672.00 | Included | 5 business users plus accountant access. Multicurrency. |
| QuickBooks Online Advanced ↗ | £123.00/month | £12.30/month for 6 months, if eligible | £1,476.00 | Included | 25 business users plus accountant access. Multicurrency. |
| FreeAgent Sole trader ↗ | £19.00/month | £9.50/month for 6 months, if eligible | £228.00 | Included | Choose the subscription for your legal business type. |
| FreeAgent Partnership or LLP ↗ | £27.00/month | £13.50/month for 6 months, if eligible | £324.00 | Included | Choose the subscription for your legal business type. |
| FreeAgent Limited company ↗ | £33.00/month | £16.50/month for 6 months, if eligible | £396.00 | Included | Choose the subscription for your legal business type. |
Compare costs for your shortlist
Choose two plans, enter any extra monthly fees from your quotes, and compare the same period. Introductory offers are off by default. Enable them only if you have confirmed eligibility with both vendors.
Two worked examples
VAT-capable entry plans, before extras
At the checked standard monthly prices, 12 months of Xero Ignite costs £216 and QuickBooks Simple Start costs £192. If the checked six-month offers apply, the base first-year totals are £118.80 and £105.60 respectively. These are different plans: Xero Ignite has invoice and bill caps; QuickBooks Simple Start allows one business user plus accountant access. A £24 annual base-price difference does not settle which workflow fits.
A FreeAgent limited-company subscription
The checked monthly plan is £33, making a standard 12-month base cost of £396. Six months at £16.50 followed by six at £33 produces £297 for the first year. A confirmed eligible bank-funded licence can reduce the base fee to £0, but bank conditions and paid add-ons still matter. Keep that eligibility separate from an unrestricted free plan.
Check these differences before choosing
- Tax workflow: entry plans without VAT submission are not substitutes for VAT-capable tiers. Software capability and your business’s filing obligations are separate questions; confirm both with your accountant.
- Volume and people: confirm invoice and bill counting rules, employee access, accountant access and the plan needed for additional users.
- Extras: price payroll, payment processing, capture tools, ecommerce connectors and migration separately. Included allowances vary by plan.
- Business structure: FreeAgent’s subscription categories differ for sole traders, partnerships/LLPs and limited companies. Supported company filing also has entity and accounting-standard conditions.
- Promotions: compare the first year with a normal renewal year. A discount may exclude a trial, require a code, cover only the base licence or be restricted to a first organisation.
Introductory offer conditions
Xero: the checked offer is 90% off the base subscription for six months for eligible new UK customers buying their first organisation, subject to the vendor’s code and terms. QuickBooks: the checked purchase offer is 90% off for six months; the 30-day trial is a separate choice. FreeAgent: the checked monthly subscriptions show half-price base fees for six months. Offers can change, and this calculator does not confirm eligibility.
Bank-funded FreeAgent: what to verify
NatWest, Royal Bank of Scotland and Ulster Bank have eligible business-current-account arrangements. Mettle has a separate route with account-use conditions and an exclusion for partnerships. Confirm the current conditions on the official eligibility pages and keep the qualifying account open. Optional FreeAgent add-ons and any bank charges are separate.
Sources and calculation method
Prices were researched from official vendor pages, with browser verification where dynamic pricing did not appear in text retrieval. Feature notes are vendor-described; buying guidance and arithmetic are SoftwareRadar’s analysis. We have not tested these products hands-on. The calculator multiplies checked monthly prices over the selected period, applies an optional introductory period and adds your quoted extras and setup costs.
- Xero plans ↗
- Xero Simple ↗
- QuickBooks plans ↗
- QuickBooks tax basis ↗
- FreeAgent plans ↗
- FreeAgent bank eligibility ↗
- FreeAgent Mettle eligibility ↗
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Xero · QuickBooks Online · FreeAgent
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Frequently asked questions
Are the prices including VAT?
No. All amounts on this page and in its calculator are in GBP excluding VAT. The vendor’s checkout determines the tax and actual payable amount.
Can I combine the discount and the free trial?
Do not assume you can. QuickBooks displays the purchase offer and 30-day trial as separate choices; Xero also has offer conditions. Check current terms before enrolling.
Does the calculator include payroll and transaction fees?
Only when you enter those amounts as monthly extras. It does not estimate unverified usage charges or assume that a feature is included in every plan.
Does the lowest total mean the best software?
No. Compare the tier that supports your workflow, verify the relevant conditions and test the product with your own transactions before choosing.