The AI TillComparisons · Accounting
Comparison
Xero vs FreeAgent
Cloud accounting for invoices, bank feeds, VAT and payroll, with AI-assisted features. UK accounting software for sole traders, partnerships and small companies.
| Xero | FreeAgent | |
|---|---|---|
| Price | Ignite: £18 a month. Grow: £39. Comprehensive: £55. Ultimate: £70 (all excl. VAT). Intro offers run on the pricing page. Payroll £1.50 per person. | £33 a month or £330 a year (excl. VAT), with introductory discounts. Free if you keep a business account with NatWest, RBS or Ulster Bank, or use Mettle (conditions apply). |
| Free plan | No. No free plan; a free trial and introductory discounts are offered. | No. Free for eligible NatWest, RBS, Ulster Bank and Mettle customers; otherwise a 30-day free trial. |
| Best for | Limited companies and VAT-registered businesses that want an accountant-friendly system. | Sole traders and freelancers, especially with an eligible bank account. |
| Watch out for | Intro prices last six months; budget for the full price. | Check the conditions for the free bank offer. |
| UK notes | UK pricing in pounds; Making Tax Digital compatible. | UK company, pounds. |
| Made by | Xero | FreeAgent |
| Checked | 2026-10-14 | 2026-10-14 |
Our verdict
For most small UK businesses starting out, Xero is the easier first pick because its entry plan costs less. Pick FreeAgent instead if this sounds like you: sole traders and freelancers, especially with an eligible bank account.
UK price difference
Cheapest paid plans: Xero £18 (Ignite, per month excl. VAT); FreeAgent £33 (standard, per month excl. VAT). Xero is £15 a month cheaper at entry level. Check on the provider page whether VAT is included before you buy.
Who should pick which?
- Choose Xero for: limited companies and VAT-registered businesses that want an accountant-friendly system.
- Choose FreeAgent for: sole traders and freelancers, especially with an eligible bank account.
Neither has a free plan; use the free trials where offered before you commit. Prices change, so check the provider's page before buying.
Other accounting to consider
QuickBooks
Cloud accounting with invoicing, expenses and VAT, plus Intuit Intelligence AI features (some in beta).
Sage Accounting
UK accounting and payroll software with the Sage Copilot AI assistant included in every plan.
Zoho Books
Accounting software with a free plan for very small businesses and paid UK plans.
Full details
Xero tool page · FreeAgent tool page · How we check prices
Sources
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