The AI TillComparisons · Accounting
Comparison
Xero vs Sage Accounting
Cloud accounting for invoices, bank feeds, VAT and payroll, with AI-assisted features. UK accounting and payroll software with the Sage Copilot AI assistant included in every plan.
| Xero | Sage Accounting | |
|---|---|---|
| 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. | Start: £20 a month. Standard: £43 a month. All excl. VAT. Offer when checked: 90% off for 6 months. |
| Free plan | No. No free plan; a free trial and introductory discounts are offered. | No. No free plan; introductory discount instead. |
| Best for | Limited companies and VAT-registered businesses that want an accountant-friendly system. | VAT-registered sole traders and small firms wanting payroll and CIS in one place. |
| Watch out for | Intro prices last six months; budget for the full price. | Check the price after the introductory offer ends. |
| UK notes | UK pricing in pounds; Making Tax Digital compatible. | UK company, pounds, Making Tax Digital and CIS support. |
| Made by | Xero | Sage |
| 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 Sage Accounting instead if this sounds like you: vAT-registered sole traders and small firms wanting payroll and CIS in one place.
UK price difference
Cheapest paid plans: Xero £18 (Ignite, per month excl. VAT); Sage Accounting £20 (Start, per month excl. VAT). Xero is £2 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 Sage Accounting for: vAT-registered sole traders and small firms wanting payroll and CIS in one place.
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).
FreeAgent
UK accounting software for sole traders, partnerships and small companies.
Zoho Books
Accounting software with a free plan for very small businesses and paid UK plans.
Full details
Xero tool page · Sage Accounting tool page · How we check prices
Sources
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