Sage Sole Trader vs Xero
Both are full cloud accounting tools for Making Tax Digital for Income Tax.
Sage Sole Trader 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.
| Sage Sole Trader | 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 | Yes | Yes |
| Type | full cloud accounting | full cloud accounting |
| HMRC status | Recognised | Recognised |
| Price verified | 2026-07-01 | 2026-06-24 |
Sage Sole Trader
Sage's genuinely free MTD for Income Tax app for sole traders and landlords (formerly Sage Individual). Digital records, bank feeds, quarterly updates and the final declaration at no cost — from one of the biggest names in UK accounting.
- Sole traders and landlords who want a free tool from a major brand
- Non-VAT-registered people who want zero-cost compliance
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 1 July 2026 (catalogue reconciled 1 July 2026). Links are affiliate links and never affect ranking. Not affiliated with HMRC; not tax advice.