Xero vs QuickBooks · UK comparison · 2026
Xero vs QuickBooks UK: which is better for your business?
Written by Iftikhar Rashid FCCA — Managing Partner, RR Accountants. We set up and manage both platforms for clients.
Short answer
For most UK limited companies, landlords, and growing SMEs: Xero. It is more widely used among UK accountants, has excellent MTD compatibility, and handles complex structures (SPVs, multiple entities, management accounts) better. QuickBooks is a good choice for simpler businesses — sole traders and small limited companies wanting a less complex interface at a lower price point. We primarily onboard clients to Xero but support QuickBooks where clients already have it.
Xero vs QuickBooks — side by side
| Feature | Xero | QuickBooks |
|---|---|---|
| MTD VAT | ✓ Full MTD compatible | ✓ Full MTD compatible |
| MTD Income Tax (from Apr 2026) | ✓ Integrated | ✓ Integrated |
| UK accountant adoption | Very high — most UK practices use Xero | Moderate — less common among UK practices |
| Bank feeds | Strong — wide bank compatibility | Good — improving over time |
| Multi-entity / SPV | Better — each entity separate subscription | Limited multi-entity support |
| Landlord / property features | Better with property chart of accounts | Workable but less specialised |
| Interface complexity | Medium — more features, steeper curve | Simpler — better for non-accountants |
| UK pricing (check current) | From £X/month [VERIFY at xero.com/uk] | From £X/month [VERIFY at quickbooks.intuit.com/uk] |
| App integrations | Large ecosystem | Good but smaller than Xero |
| Our recommendation for | Limited companies, landlords, SPVs, growing SMEs | Sole traders, simple limited companies |
[VERIFY current pricing at xero.com/uk and quickbooks.intuit.com/uk — both platforms change pricing regularly]
Who should use which
Choose Xero if you are
- ✓A limited company director with growing complexity
- ✓A landlord with multiple properties or an SPV
- ✓A contractor using an accountant who prefers Xero
- ✓A business needing management accounts alongside bookkeeping
- ✓Planning to scale — Xero handles complexity better
- ✓Working with RR Accountants (our primary platform)
Choose QuickBooks if you are
- →A sole trader with simple accounts
- →A small limited company with straightforward affairs
- →Already using QuickBooks and not wanting to migrate
- →Price-sensitive — QuickBooks entry plans are often cheaper
- →Prefer a simpler interface without accountant features
Xero vs QuickBooks — FAQs
Should I use Xero or QuickBooks for my UK business?
For most UK limited companies, landlords, and growing SMEs: Xero. It is the most widely used platform among UK accountants, has strong MTD compatibility, excellent bank feeds, and better multi-entity functionality. QuickBooks is a good choice for simpler businesses — sole traders, small limited companies — who want a less complex interface. At RR Accountants, we primarily set clients up on Xero, but can support QuickBooks where clients already have it in place.
Is Xero or QuickBooks better for Making Tax Digital?
Both are fully MTD-compatible and HMRC-recognised. Both handle MTD VAT and MTD Income Tax. Xero has historically had a wider adoption among UK accountants and deeper integration. For MTD Income Tax specifically (from April 2026 for landlords above £50k), both platforms support quarterly digital submissions — but the setup and digital link configuration differs. We set up whichever platform fits the client best.
How much does Xero cost in the UK?
Xero pricing tiers change — check xero.com/uk/pricing for current plans. [VERIFY current pricing at xero.com/uk] Generally: a starter plan, a standard plan, and a premium plan with increasing features. Most limited companies and landlords use the standard or premium tier. Note: Xero prices are plus VAT.
How much does QuickBooks cost in the UK?
QuickBooks pricing changes frequently. Check quickbooks.intuit.com/uk for current plans. [VERIFY at quickbooks.intuit.com/uk] Generally: Simple Start, Essentials, Plus, and Advanced tiers. Sole traders and small companies typically use Simple Start or Essentials.
Is Xero good for landlords?
Yes. Xero is well-suited for landlords, particularly those with multiple properties or an SPV. The chart of accounts can be configured for property income and expenses, bank feeds connect to rental accounts, and the MTD Income Tax integration is straightforward. For MTD quarterly submissions, we configure Xero to submit directly to HMRC for every landlord client in scope.
Do I need accounting software if I have an accountant?
For most clients: yes, but the accountant sets it up and manages it. You provide receipts and bank transactions; we do the rest. For MTD Income Tax (landlords above £50k from April 2026), MTD-compatible software is legally required regardless. For VAT-registered businesses, MTD for VAT has required digital records and software submission since April 2022.
Software setup included
We set up and manage your accounting software.
You don't have to configure it yourself. Onboarding includes software setup, bank feed connection, and MTD configuration.
Book a call →Iftikhar Rashid FCCA · 16 years · Birmingham