QuickFile vs Xero: best MTD software in 2026

QuickFile

Free up to 1,000 txn/yr

Aimed at: Sole traders who want a free, UK-built accounting platform with no catch

4.2/5

Try QuickFile Read the full review →

Xero

From £7/month

Aimed at: Sole traders & landlords who want a mature ecosystem and lots of integrations

4.3/5

Try Xero Read the full review →

Last verified on 30 September 2026. Sources: QuickFile and Xero provider websites, and the HMRC list of MTD software . Prices may include VAT or be promotional and can change at any time.

QuickFile and Xero are both HMRC-recognised for MTD Income Tax. QuickFile is uk sole traders who want a genuinely free option; Xero is sole traders & landlords who want a mature ecosystem and lots of integrations.

Quick comparison

	QuickFile	Xero
Pricing	Free under 1,000 transactions/year, from £6/month	From £7/month (Simple) to £33/month (Grow)
Best for	UK sole traders who want a genuinely free option	Sole traders & landlords who want a mature ecosystem and lots of integrations
Free tier	Yes	No
Bank feeds	Yes	Yes
Multi-currency	Yes	No
Invoicing	Yes	Yes
Mobile app	Yes	Yes

QuickFile overview

QuickFile is uk sole traders who want a genuinely free option. Key strengths: Free with any bank, Multi-currency, 50+ bank feeds. Limitations: Transaction limit on free tier, Dated interface.

Xero overview

Xero is sole traders & landlords who want a mature ecosystem and lots of integrations. Key strengths: 1,000+ integrations, 50+ bank feeds, Scales well. Limitations: No free tier, Steeper learning curve.

Which should you choose?

Pick QuickFile if…

Free with any bank
Multi-currency
50+ bank feeds

Pick Xero if…

1,000+ integrations
50+ bank feeds
Scales well

Verdict

QuickFile vs Xero: Both are solid MTD-recognised options. QuickFile excels for uk sole traders who want a genuinely free option, while Xero is better for sole traders & landlords who want a mature ecosystem and lots of integrations. Choose based on your specific needs and budget.

Still not sure which one fits?

Comparing prices and features only gets you so far. Answer five quick questions about how your business actually works and the MTD Software Finder will shortlist the tools that genuinely suit your situation — and be honest about what each one can't do.

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QuickFile vs Xero: how we researched this

We checked both QuickFile and Xero against the official HMRC list of MTD-compatible software on 30 September 2026, and verified pricing from each provider's own website on the same date. We judge what each tool genuinely can and can't do for a real UK sole trader, freelancer or landlord — including limitations a free trial won't volunteer — and we never let commission influence the order we present things. Some links on this page are affiliate links; we may earn a small commission if you buy through them, at no extra cost to you.

Also worth considering

If neither QuickFile nor Xero feels right, these HMRC-recognised options are worth a look:

FreeAgent UK sole traders & micro limited companies who want a simple all-in-one package Read the review →
Sage Accounting Established UK businesses & landlords who want a recognisable UK brand Read the review →
QuickBooks Sole traders & small businesses already in the Intuit ecosystem Read the review →

Bottom line: who should pick what

Your situation	Our pick	Why
Best for landlords	Xero	Sole traders & landlords who want a mature ecosystem and lots of integrations

Not sure which camp you fall into? Run the 5-question Software Finder and we'll shortlist the tools that fit you.

QuickFile vs Xero: common questions

Which is better, QuickFile or Xero?

The honest answer is "it depends on your situation". QuickFile is aimed at traders who fit "Sole traders who want a free, UK-built accounting platform with no catch", while Xero is aimed at people who fit "Sole traders & landlords who want a mature ecosystem and lots of integrations". If that doesn't settle it for you, run the 5-question MTD Software Finder and it will shortlist the tools that actually fit your circumstances.

Is QuickFile or Xero cheaper?

QuickFile starts from a lower headline price (Free up to 1,000 txn/yr) than Xero (From £7/month). Check the plans on each provider's site for the full picture — the cheapest headline tier is often not the one you'll end up on.

Can I move from QuickFile to Xero later?

Yes. MTD just requires you to keep digital records and send quarterly updates to HMRC — it does not lock you into any one tool. Most MTD software lets you export your accounting data, so you can switch providers and simply start your next quarterly update in the new software. Keep your old records for at least six years.