Choose FreeAgent if…
you are a sole trader or small owner-managed business that values its UK tax workflow, projects/time tracking, or you qualify for FreeAgent through an eligible NatWest-group or Mettle business account.
Compare · Accounting
FreeAgent vs Xero: which fits a UK small business?
FreeAgent has a particularly strong UK owner-managed tax/admin proposition. Xero has a broad accountant and app ecosystem. The right answer depends on which of those advantages matters to your actual workflow.
Quick answer
FreeAgent for a simpler UK owner-managed workflow; Xero when adviser and integration fit matter more.
Choose Xero if…
your accountant/bookkeeper already works in Xero, or a business-critical app depends on Xero's broad integration ecosystem.
Already using either?
Keep it if it works. Accounting migration needs a stronger reason than a temporary discount or one marginal feature.
Price context
Compare the regular plan that fits, not the headline promotion.
| Product | Current regular UK price examples | What matters |
|---|---|---|
| FreeAgent | Sole trader £19/month; limited company £33/month, excluding VAT. Annual pricing is also offered. | Business-type pricing; eligible NatWest, RBS, Ulster Bank and qualifying Mettle customers can receive the core product free, with optional add-ons potentially chargeable. |
| Xero | Current regular prices after promotion include Ignite £18, Grow £39, Comprehensive £55 and Ultimate £70/month excluding VAT. | Plan differences include invoice/bill limits and higher-tier operational features. Xero states there are no per-user licence fees, though usage allowances can apply to features. |
Pricing checked 3 October 2026. Both vendors currently advertise promotional discounts; they are not used to decide the comparison.
What to do instead
If the current accounting system is reliable, review the plan before replacing the product.
A plan limit, unused feature or poor configuration may be cheaper to fix than migrating bank feeds, opening balances, historic records and accountant processes.
A useful FreeAgent distinction
Eligible bank-funded access can change the economics completely.
FreeAgent states that eligible customers with NatWest, Royal Bank of Scotland, Ulster Bank business accounts or qualifying Mettle use can receive the core subscription at no charge. If you qualify, that is a material reason to test FreeAgent — provided the product still suits the accounting workflow.
Sources and scope
Primary sources checked
- FreeAgent — pricing and included features
- FreeAgent — eligible free-account access
- Xero UK — pricing and plan features
Page reviewed: 3 October 2026. Prices, promotions and plan packaging change; verify current vendor terms before purchase.