FreeAgent vs Xero
FreeAgent starts at £10 a month and Xero at £18, but FreeAgent is free with a NatWest, RBS, Ulster Bank or Mettle business account, and that decides it for a lot of people. Xero charges by feature tier; FreeAgent charges by what kind of business you are.
Prices checked 10 September 2026 · List prices per month, excluding VAT
Price, side by side #
| FreeAgent, by business type | Xero, by feature tier | ||
|---|---|---|---|
| Landlord | £10 | Ignite | £18 |
| Sole Trader | £19 | Grow | £39 |
| Partnership/LLP | £27 | Comprehensive | £55 |
| Limited Company | £33 | Ultimate | £70 |
Both figures are list prices. FreeAgent currently advertises 50% off for 6 months, and free with a NatWest, RBS, Ulster Bank or Mettle account. Xero advertises 90% off for the first 6 months for new customers. Compare month seven, not month one.
The pricing models are the real difference #
With FreeAgent you pick your business type and get everything that business type needs. A sole trader pays one price and gets Self Assessment filing included. A limited company pays another and gets Corporation Tax and payroll.
With Xero you pick a feature tier. That is more flexible for a growing business and more confusing for a one-person one, because you have to work out which tier covers what you actually do. The entry tier is also capped at 20 invoices and 10 bills a month.
Where each one wins #
| FreeAgent | Xero | |
|---|---|---|
| Cheapest route | Free with the right bank account | £18 a month |
| Pricing logic | By business type | By feature tier |
| Invoice limits | None | Capped on the entry plan |
| Files Self Assessment | Yes, for sole traders | No, produces figures only |
| Scales to a larger business | Less so | Yes, up to payroll for 10 and project tracking |
| Accountant familiarity | Common, especially with smaller practices | Very common |
Which should you pick? #
- You bank with NatWest, RBS, Ulster Bank or Mettle: FreeAgent, on cost alone.
- Sole trader who wants the tax return filed for you: FreeAgent.
- Growing, taking on staff, or invoicing heavily: Xero.
- Your accountant has a preference: follow it. The time they save is worth more than the subscription difference.
Also worth comparing: Xero against QuickBooks and FreeAgent against QuickBooks.
Common questions #
Is FreeAgent really free?
Yes, if you bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle and have at least one transaction a month on that account. It is the full product, not a limited version. Without one of those accounts it is a paid subscription like any other.
Is FreeAgent or Xero better?
FreeAgent is priced by business type, so a sole trader pays £10 to £19 rather than picking a feature tier. Xero is priced by feature tier and scales further for larger businesses. For a one-person business FreeAgent is usually simpler and cheaper.
Does FreeAgent file Self Assessment?
Yes, FreeAgent can file the Self Assessment return for sole traders directly. That is a genuine difference from Xero, which produces the figures but does not file the personal return.
Which is better for a limited company?
Both handle it. FreeAgent bundles Corporation Tax and payroll into one price by business type. Xero splits features across plans, so the answer depends on how many people you pay and how much you invoice.
Prices change often. Every figure is a list price recorded on the date shown, and this site keeps the history rather than overwriting it. Confirm with the vendor before buying.