By the team at Acey Bookkeeping, certified Xero advisors based in Rochester, Medway. Last updated 3 July 2026.
The short answer (TL;DR)
In 2026 Xero UK has four main plans, priced per month and excluding VAT: Ignite at £16, Grow at £37, Comprehensive at £50 and Ultimate at £65. There is also a pared-back Simple plan aimed at sole traders getting ready for Making Tax Digital. New customers can usually claim 80% off for the first six months (or one month free), and Xero has confirmed prices are rising from 1 September 2026, so locking in sooner is worth considering.
For most Kent small businesses, Grow (£37 a month) is the sweet spot: unlimited invoices, full bank reconciliation, bill management and payroll for one person. Sole traders and brand-new businesses can start on Ignite and upgrade later, while established firms with several employees usually need Comprehensive or Ultimate.
How much does Xero cost per month in the UK?
Here is what each Xero plan costs in 2026. All prices are the regular monthly price and exclude VAT. Remember Xero often runs a new-customer discount of 80% off for six months, so your first few invoices will be much lower than the figures below.
| Plan | Price/month (excl VAT) | Best for | Invoices & bills | Payroll included
|
|---|---|---|---|---|
| Ignite | £16 | Sole traders and new businesses finding their feet | 20 invoices, 10 bills per month | Optional (£1.50 per person) |
| Grow | £37 | Growing small businesses that invoice regularly | Unlimited invoices and bills | 1 person |
| Comprehensive | £50 | Established SMEs with a small team | Unlimited, plus multiple currencies | 5 people |
| Ultimate | £65 | Scaling businesses that need analytics and projects | Unlimited, plus project tracking | 10 people |
A quick note on VAT: Xero quotes prices without VAT, so if you are VAT registered you can reclaim it, and if you are not, add 20% to work out your true cost. Ignite at £16 actually costs £19.20 a month once VAT is added, for example.
What do you get in each Xero plan?
Xero Ignite (£16/month)
Ignite is the entry point for most businesses. You can send quotes and up to 20 invoices a month, enter 10 bills, reconcile your bank transactions, capture receipts with Hubdoc and submit VAT returns straight to HMRC. It is also MTD for Income Tax ready, which matters as HMRC rolls out Making Tax Digital. The main limits are the invoice and bill caps, so if you raise more than 20 invoices a month you will quickly outgrow it.
Xero Grow (£37/month)
Grow removes the invoice and bill caps and adds proper automation: automated bill entry, performance dashboards, expense claims for one user and payroll for one person. This is the plan we set up most often for growing Medway and Kent businesses because it covers day-to-day bookkeeping without paying for features you will not use.
Xero Comprehensive (£50/month)
Comprehensive is built for established businesses. On top of everything in Grow you get payroll for five people, expense claims for five users, multiple currencies and tailored financial health scorecards. If you employ a handful of staff or trade internationally, this is usually the right home.
Xero Ultimate (£65/month)
Ultimate is the top tier, aimed at scaling businesses. It adds payroll for ten people, project time and cost tracking, KPI and ratio analysis, industry benchmarking and a 180 day cash flow forecast. Most small businesses will not need this until they are managing a larger team and want deeper reporting.
What about Xero Simple?
Xero also offers a stripped-back Simple plan aimed at sole traders who mainly need to get ready for Making Tax Digital for Income Tax. It is cheaper than Ignite but far more limited, so it suits self-employed people with very basic needs rather than growing businesses. If you plan to take on work, raise regular invoices or add staff, start on Ignite or Grow instead.
Which Xero plan is best for me?
Here is the simple rule of thumb we give clients:
- Sole trader or side business, few invoices: Simple or Ignite.
- Growing limited company or busy sole trader: Grow. This is the best all-rounder for most Kent SMEs.
- Established business with employees or overseas customers: Comprehensive.
- Larger team, project work or detailed reporting needs: Ultimate.
The good news is you are not locked in. You can upgrade at any time, and downgrade one month after upgrading, so it is fine to start lean and move up as you grow. If you are unsure, it is almost always cheaper to start on Ignite or Grow than to overpay for features you will not touch for a year.
Are Xero prices going up in 2026?
Yes. Xero has confirmed that UK subscription prices are increasing from 1 September 2026. The plan structure (Ignite, Grow, Comprehensive, Ultimate) stays the same, but the monthly figures above are set to rise. If you have been thinking about moving to Xero, signing up before the change and claiming the new-customer discount is a sensible way to keep costs down for your first year.
What happened to Xero Starter, Standard and Premium?
If you remember Xero as Starter, Standard and Premium, those plans were retired for new customers in September 2024 and replaced with Ignite, Grow, Comprehensive and Ultimate. The names changed and the feature mix was reshuffled, but the idea is the same: a low-cost entry plan rising to a fully featured top tier. Existing users have been migrated over time, so if you are still on an old plan it is worth checking what you are now paying.
Is Xero worth it for a small business?
For most UK small businesses, yes. Xero is HMRC recognised, handles MTD for VAT and Income Tax, connects directly to your bank for daily reconciliation and gives you real-time reports rather than a shoebox of receipts at year end. The subscription is a genuine business cost, but it usually pays for itself in time saved and mistakes avoided. That said, software is only half the story. Xero tells you what happened; a good bookkeeper makes sure the numbers are right, chases what needs chasing and explains what it all means for your business.
Do I still need a bookkeeper if I use Xero?
This is the question we hear most. Xero automates a lot, but it does not know that a payment was really a director’s loan, or that a supplier double-charged you, or that your VAT return needs adjusting. As certified Xero advisors in Medway and Kent, we set Xero up correctly from day one, reconcile your accounts every week, keep you MTD compliant and give you monthly management accounts you can actually use. Many clients find that pairing Xero with an affordable bookkeeper costs less than the time they were losing doing it themselves.
Get Xero set up right, first time
Choosing the plan is the easy part. Setting Xero up so it actually saves you time (bank feeds, chart of accounts, VAT, payroll and receipt capture) is where most business owners get stuck. Acey Bookkeeping is a mother and daughter team of certified Xero advisors with more than 40 years of combined experience, based in Rochester and serving small businesses across Medway and Kent. We can pick the right plan for you, get Xero running properly and take bookkeeping off your plate for good.
Get in touch with Acey Bookkeeping for a friendly, no-obligation chat about your Xero setup.
Frequently asked questions
How much does Xero cost per month in the UK?
Xero UK plans in 2026 cost £16 (Ignite), £37 (Grow), £50 (Comprehensive) and £65 (Ultimate) per month, all excluding VAT. New customers can usually claim 80% off for the first six months.
Which Xero plan is best for a small business?
Grow at £37 a month suits most growing small businesses, with unlimited invoices, bank reconciliation and payroll for one person. Sole traders can start on Simple or Ignite, while businesses with several employees usually need Comprehensive or Ultimate.
Does Xero charge VAT on top of the price?
Yes. Xero quotes all prices excluding VAT, so add 20% to work out your real monthly cost. VAT-registered businesses can reclaim it.
Is there a free version of Xero?
No, Xero does not have a permanently free plan, but it offers a free trial and a new-customer discount of 80% off for six months (or one month free). After that, paid subscriptions apply.
Are Xero prices increasing in 2026?
Yes. Xero has confirmed UK subscription prices are rising from 1 September 2026. The four plans stay the same but monthly prices will go up, so signing up before then can save money.
What is the difference between Xero Ignite and Simple?
Simple is a very limited plan for sole traders preparing for Making Tax Digital, while Ignite is a fuller entry plan that includes invoicing, bill entry, VAT returns and bank reconciliation. Most businesses that plan to grow should choose Ignite.
