Xero vs Sage Accounting in the UK (October 2026)
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Xero
Strong on Making Tax DigitalCloud accounting from New Zealand with bank feeds, a large app marketplace and country editions.
Visit XeroSage Accounting
Strong on Making Tax DigitalSage's cloud accounting for small businesses, with VAT calculation and returns, sold in local editions.
Visit Sage AccountingVerdict. Xero is cheaper to start, by about GBP 2 a month on the entry plan. Both confirm Making Tax Digital.
Side by side
| Feature | Xero | Sage Accounting |
|---|---|---|
| Cheapest paid plan | Ignite: GBP 18 per month, excl. VAT | Start: GBP 20 per month, excl. VAT |
| Top plan | Ultimate: GBP 70 per month, excl. VAT | Plus: GBP 59 per month, excl. VAT |
| Free plan or trial | No | No |
| Number of plans | 4 | 3 |
| Making Tax Digital | Yes | Yes |
| Priced in GBP | Yes | Yes |
| What the entry plan includes | 20 invoices, 10 bills | 1 user |
| Local company in the UK | Yes | Yes |
Shaded cells mark the lower price. Sources: Xero, Sage Accounting.
Which to choose
Choose Xero if the lowest monthly cost matters most.
Choose Sage Accounting if strong on Making Tax Digital.
See every option in the best accounting software in the UK ranking.