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Xero wins for most UK sole traders and landlords
Xero wins on reporting depth and accountant ecosystem. QuickBooks wins on UI simplicity and entry-level pricing. For MTD ITSA compliance alone, both are equivalent — choose based on your accountant's preference or try both free trials.
At a glance
| Xero | QuickBooks | |
|---|---|---|
| Price from | £16/mo | £14/mo |
| Free tier | ✗ No | ✗ No |
| Best for | Existing Xero users who need MTD ITSA compliance | Existing QuickBooks users upgrading to MTD ITSA |
| MTD ITSA | HMRC Recognised | HMRC Recognised |
| Visit Xero → | Visit QuickBooks → |
Xero vs QuickBooks: MTD ITSA comparison
Both Xero and QuickBooks are HMRC-recognised for Making Tax Digital for Income Tax Self Assessment across all three rollout phases. The honest answer for most users: if you are already on one of them, stay. The switching cost is not worth it for Phase 1.
If you are choosing for the first time, here is how they differ.
Xero
HMRC RecognisedFrom £16/month
QuickBooks
HMRC RecognisedFrom £14/month
MTD ITSA capability
Neither platform has a material advantage for MTD ITSA submission capability. Both handle:
- Quarterly updates via the MTD ITSA API
- End-of-period statements
- Final declarations
- Government Gateway authorisation
The submission interface is slightly cleaner in QuickBooks. The setup flow is slightly better documented for Xero. Neither is a meaningful differentiator.
Where Xero wins
Reporting. Xero’s reporting suite is more comprehensive, particularly for businesses with multiple cost centres or income streams. If you need to analyse profitability at a granular level, Xero pulls ahead.
Accountant ecosystem. More UK accountants use Xero than QuickBooks. If your accountant already uses Xero, staying on it saves friction and potentially money on accountant time.
Bank reconciliation. Xero’s rules engine for bank reconciliation is marginally more powerful for users with high transaction volumes.
Where QuickBooks wins
Price at entry level. QuickBooks Simple Start (£14/month) costs less than Xero Starter (£16/month). For sole traders on the basic plan, the saving is small but real.
UI simplicity. QuickBooks is consistently rated more beginner-friendly. The onboarding flow is better designed for users who are not accounting professionals.
Self-employed tier. QuickBooks has a separate Self-Employed product specifically designed for sole traders — simpler and cheaper than the full accounting platform.
Our verdict
For existing users: stay on what you have. For new users: ask your accountant which they prefer and use that. If your accountant has no preference, try both 30-day trials and choose the one that feels more natural.
For budget-conscious sole traders who need MTD ITSA and nothing more, consider Zoho Books Standard (£12/month) — it delivers equivalent compliance at lower cost than either.
Read the full reviews