Quick answer
Xero UK costs £18 a month for Ignite, £39 for Grow, £55 for Comprehensive and £70 for Ultimate, all excluding VAT. New customers get 90% off for the first 6 months, which makes year one £118.80 on Ignite. Prices checked 11 November 2026 from Xero’s own UK page.
How we compared: every price and plan limit on this page was read from the vendor’s own UK page on 11 November 2026, and tax dates come from GOV.UK. We have not run hands-on tests of these products for this article, so we do not describe how they feel to use. This is general information, not tax or financial advice. See our editorial policy.
How much does Xero cost in the UK?
Xero has four UK plans. All prices below are monthly and exclude VAT, as shown on Xero’s UK plans page.
| Best for | Software | From (per month) |
|---|---|---|
| Sole trader sending up to 20 invoices a month | Xero Ignite | £18 |
| Higher invoice and bill volume, auto-reconcile | Xero Grow | £39 |
| Multi-currency and budgets | Xero Comprehensive | £55 |
| Biggest teams, 180-day cash flow forecast | Xero Ultimate | £70 |
| Plan | Intro price (first 6 months) | Standard price | Invoices and bills | Cash flow forecast |
|---|---|---|---|---|
| Ignite | £1.80 | £18 | Quotes and 20 invoices, 10 bills | 30 days |
| Grow | £3.90 | £39 | Invoices and bills included | 60 days |
| Comprehensive | £5.50 | £55 | Invoices and bills included | 90 days |
| Ultimate | £7 | £70 | Invoices and bills included | 180 days |
What does Xero cost for the first year?
Xero shows 90% off the base plan for 6 months for new customers, then the standard price. This is our arithmetic, excluding VAT.
| Plan | First year (6 months at intro price, then standard) | Year at standard price | With 20% VAT added to year one |
|---|---|---|---|
| Ignite | £118.80 | £216 | £142.56 |
| Grow | £257.40 | £468 | £308.88 |
| Comprehensive | £363 | £660 | £435.60 |
| Ultimate | £462 | £840 | £554.40 |
The page says the discount does not cover add-ons, usage charges or payment fees, so those come on top.
What do Xero’s add-ons cost?
- Bill and payroll payments: optional on Ignite at £0.20 per extra payment. Grow includes up to 5, Comprehensive up to 10 and Ultimate up to 15, then £0.20 each.
- Payroll: optional on Ignite at £1.50 per extra person. Grow includes 1 person, Comprehensive 5 and Ultimate 10, with extra people charged on top.
- Expenses and mileage users: Ignite excludes them. Grow includes 1 user, Comprehensive 5 and Ultimate 10, then £2.50 per extra user.
- Company accounts and tax: optional on all plans, £120 excluding VAT billed annually.
- Contractor CIS returns: optional on all plans at £5 a month.
- Auto-reconcile: £3.50 a month on Ignite, included on Grow and above.
Which Xero plan should you choose?
- Sole trader sending fewer than 20 invoices a month: Ignite at £18 is the plan to test first. If you also want auto-reconcile it costs £3.50 more.
- More than 20 invoices or more than 10 bills a month: Grow at £39, which is £21 more a month.
- You invoice in other currencies: Comprehensive at £55 is the first plan with multi-currency on the page.
- You want a longer cash flow forecast or projects: Ultimate at £70.
Comparing alternatives? Our FreeAgent pricing guide shows what the other popular UK sole trader tool costs, and our Making Tax Digital guide explains the dates.
Is Xero ready for Making Tax Digital?
Xero’s plans table lists “MTD for Income Tax ready” and submitting VAT returns to HMRC on all four UK plans. Xero’s own Making Tax Digital page says it is MTD-compliant but does not name which plans include it, so rely on the plans table above and confirm when you sign up.
How do you test Xero before paying?
- Use the free month or the 90% intro offer, not both.
- Connect your real bank account and check how bank feeds and matching behave.
- Send a test invoice to yourself and check it includes what HMRC expects.
- Write down the standard price and set a reminder 5 months in.
Frequently asked questions
How much does Xero cost per month in the UK?
Xero’s UK page lists Ignite at £18, Grow at £39, Comprehensive at £55 and Ultimate at £70 a month, excluding VAT. New customers can get 90% off the base plan for the first 6 months. Add VAT at 20% if you cannot reclaim it.
Does Xero charge VAT on top of its prices?
Xero’s UK page says its prices exclude VAT. If you are not VAT-registered you cannot reclaim it, so budget about 20% more: Ignite works out at £21.60 a month and Grow at £46.80, by our arithmetic.
What is the cheapest Xero plan, and what are its limits?
Ignite at £18 a month. Xero lists quotes and 20 invoices, 10 bills and a 30-day cash flow forecast on it. Grow lifts the invoice and bill limits and adds a 60-day forecast and auto-reconcile. Check the limits against how many invoices you send.
Is Xero ready for Making Tax Digital for Income Tax?
Xero’s UK plans table lists ‘MTD for Income Tax ready’ on all four plans, together with submitting VAT returns to HMRC. Confirm which tax year you start in on GOV.UK, because the income threshold falls in 2027 and 2028.
Can I switch Xero plans or cancel?
Xero’s page says subscriptions auto-renew monthly until cancelled and that you can move to a cheaper plan one month after upgrading. It also says Xero can change pricing at any time, so note the price you are quoted.
Is there a Xero free trial?
Xero’s UK page advertises one month free as an alternative to the 90% intro discount. It does not describe the terms on that page. Pick one at sign-up and write down the price that applies after the offer ends.
Update log: 11 November 2026. Prices and plan limits read from the vendors’ own UK pages and HMRC dates from GOV.UK. Next check: December 2026.
Sources: Xero UK plans, Xero: Making Tax Digital for Income Tax. Prices checked 11 November 2026.