Accounting software for your UK small business
Xero's HMRC-recognised software helps you glide through your financial admin while following Making Tax Digital (MTD) rules. Automate the boring jobs – from bank reconciliation to invoicing and payroll – so you can get back to your real work!
Loved by UK small businesses
Small businesses choose Xero’s cloud accounting software, whether you’re a sole proprietor or a larger business with staff.
Ace the Making Tax Digital requirements
Stay on top of VAT and MTD for Income Tax obligations with seamless submissions to HMRC.
Connect your business bank accounts
Connect your bank accounts to Xero so transactions flow automatically into your books.
Get help whenever you need it
Access Xero Central resources and contact Xero support when you need help.
Making Tax Digital, sorted
Xero helps you stay on top of VAT and MTD for Income Tax obligations with seamless submissions to HMRC. Record your financial transactions digitally, organise them in the cloud, and access them anytime.
- Submit quarterly updates and final declarations from Xero, and keep your records up to date by entering bills and expenses and reconciling transactions regularly
- Maintain accurate records and submit quarterly updates and final declarations from Xero
- Keep a detailed audit trail of all changes made to your financial records in case of audits
Connect your bank and reconcile automatically
Want less time in front of a screen? Connect your business bank accounts to Xero so your transaction data flows in automatically. Then, let Xero suggest matches and click OK to keep your bank records accurate and up to date.
- Accept Xero’s suggested match with a click, or use Find & Match or Create to reconcile transactions
- Use the Xero Accounting app to reconcile on your phone or tablet
- Reconcile regularly to keep your books up to date, so you always know your available cash
Speed up your invoicing for better cash flow
Xero online accounting software gives you a powerful invoicing system. Use Xero's templates to create digital invoices in seconds, easily track who owes you what, and ask Xero to nudge your late payers for you. Chances are, the money will land in your bank that bit sooner!
- Save your logo and details on Xero's templates to always look professional
- Automate time-consuming invoicing tasks with autofill and invoice reminders
- Offer your customers popular payment methods like credit card, direct debit, and digital wallet
- Check the status of all your invoices from one place
Everything your small business needs
Xero is an all-in-one system for your accounting, with fast workflows and specialist tools.
Streamline your pay runs
Automatically file Real Time Information (RTI) payroll reports with HMRC after every pay run.
Collaborate with your accountant
Give your accountant or bookkeeper access to Xero at no extra cost, and collaborate in real time from anywhere
Connect third-party apps to Xero
Do more with Xero by connecting Shopify, Stripe, HubSpot, and other specialist apps as your business grows.
FAQs on Xero's small business accounting software for the UK
For sure! Xero helps UK businesses stay on top of VAT and MTD for Income Tax obligations with seamless submissions to HMRC. You can easily keep digital records of your income and expenses, send updates and returns directly to HMRC, and store an audit trail of all changes to your financial records.
For sure! Xero helps UK businesses stay on top of VAT and MTD for Income Tax obligations with seamless submissions to HMRC. You can easily keep digital records of your income and expenses, send updates and returns directly to HMRC, and store an audit trail of all changes to your financial records.
Absolutely. Once Xero has helped you prepare your VAT return, you can send it directly to HMRC from within the software. You can send your VAT return directly to HMRC from within Xero.
Here's more on managing your tax returns with XeroAbsolutely. Once Xero has helped you prepare your VAT return, you can send it directly to HMRC from within the software. You can send your VAT return directly to HMRC from within Xero.
Here's more on managing your tax returns with Xeroost likely. Xero can connect your bank accounts to keep your records up to date, and most banks can be connected automatically via a secure direct feed for daily updates. Once you've connected your bank accounts, transactions will flow automatically into Xero via a secure direct feed.
ost likely. Xero can connect your bank accounts to keep your records up to date, and most banks can be connected automatically via a secure direct feed for daily updates. Once you've connected your bank accounts, transactions will flow automatically into Xero via a secure direct feed.
Xero offers a range of plans to suit different business sizes, from sole proprietors to larger businesses with staff. You can switch your plan at any time and add specialist features including third-party apps.
See Xero's pricing plans and start a free trialXero offers a range of plans to suit different business sizes, from sole proprietors to larger businesses with staff. You can switch your plan at any time and add specialist features including third-party apps.
See Xero's pricing plans and start a free trialYes – Xero has pricing plans for sole proprietors and small businesses, with support for VAT and MTD for Income Tax obligations, including submitting quarterly updates and final declarations from Xero. Xero's tools are designed to make bookkeeping intuitive, giving you control and clarity over your finances.
Yes – Xero has pricing plans for sole proprietors and small businesses, with support for VAT and MTD for Income Tax obligations, including submitting quarterly updates and final declarations from Xero. Xero's tools are designed to make bookkeeping intuitive, giving you control and clarity over your finances.
Life before Xero was a nightmare. Using a spreadsheet took a ridiculous amount of time.
Ryan is no longer dogged by paperwork.
Get one month free
Purchase any Xero plan, and we will give you the first month free.
All plans to suit your business
Ignite
for the first 6 months
Then £16 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions (optional)
- Auto-reconcile transactions (optional)
- Smart document capture
- View real-time reports
- Enter 10 bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for £0.20 per payment††
- Payroll for £1.50 per person
- 30 day cash flow forecast
- Visualise performance with basic graphs
Grow
for the first 6 months
Then £37 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Auto-reconcile transactions (Beta)
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 5 payments
- Payroll for 1 person
- 60 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 1 user
Comprehensive
for the first 6 months
Then £50 per month
Optimise profitability - tailor your insights for greater control.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Auto-reconcile transactions (Beta)
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 10 payments
- Payroll for 5 people
- 90 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 5 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
Ultimate
for the first 6 months
Then £65 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Auto-reconcile transactions (Beta)
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 15 payments
- Payroll for 10 people
- 180 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 10 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Track time and costs for projects for 10 users
- Analyse KPIs and ratios
- Benchmark against the industry
Useful features to run your business
Xero’s online accounting software is designed to make life easier for small businesses – anywhere, any time.
