Pandle vs Xero
Both are full cloud accounting tools for Making Tax Digital for Income Tax.
Pandle is the cheaper starting point at £0 (VAT included) versus from £100.80/yr for Xero — but the cheapest plan only wins if it covers the income types you actually have.
| Pandle | Xero | |
|---|---|---|
| True annual cost from | £0 | from £100.80/yr |
| Self-employment | Yes | Yes |
| Property / rent | Yes | Yes |
| Keeps your spreadsheet | No | No |
| Accountant access | No | Yes |
| Type | full cloud accounting | full cloud accounting |
| HMRC status | Recognised | Recognised |
| Price verified | 2026-08-10 | 2026-08-10 |
Pandle
Free, HMRC-recognised cloud bookkeeping. The free version covers MTD for Income Tax quarterly updates for sole traders and UK landlords, with an optional paid Pro tier for more automation.
- People who want free cloud bookkeeping that also files MTD
- Sole traders and UK landlords on a budget
Xero
Full cloud accounting. The Simple plan is purpose-built for MTD for Income Tax with bank-feed automation, so you do less typing.
- Sole traders who want proper bookkeeping
- People who want bank feeds to do the work
Not sure either is right? Use the finder to get a recommendation ranked by what it will actually cost you.
Prices are each tool's cheapest plan, VAT included, last verified 10 August 2026 (catalogue reconciled 10 August 2026). Links are affiliate links and never affect ranking. Not affiliated with HMRC; not tax advice.