If you’re a UK tradesperson running your own business, you know how precious your time is. Chasing payments, quoting jobs, dealing with CIS or VAT, and trying to track your cash flow—all while trying to get work done on site—can make paperwork a constant headache. This guide breaks down Xero pricing for 2026, so you’ll know exactly what it’ll set you back, how it compares, and whether it really fits the way you work.
What Does Xero Actually Cost in 2026?
Understanding the Different Xero Plans
Xero has three main pricing tiers: Starter, Standard, and Premium. These costs are billed monthly, and you can scale up as your business grows. For tradies just starting out or looking to keep costs under control, it’s important to pick a plan that matches your day-to-day needs—no more, no less.
- Starter: For those just getting going (now £5.80/month for the first three months, then usually £29/month)
- Standard: For growing businesses with more invoices or bills (£10/month for three months, usually £50/month)
- Premium: For businesses handling multi-currency or more complex needs (£15/month for three months, later £75/month)
These are UK prices (excluding VAT). You can cancel anytime, and there’s always a 30-day free trial if you want to try it for yourself first.
Can Xero Cut Down My Admin Time?
Day-to-Day Scenarios for Tradespeople
Think of all the jobs you juggle: quoting, changing dates due to weather, logging materials, getting customer sign-off, and sending invoices. With Xero, you can create and send invoices from your phone, track overdue payments, and match payments to quotes—without stopping work for a laptop session.
On-the-tools tip: Set up invoice reminders in Xero to automatically chase payments while you’re still on site, reducing awkward payment conversations later.
- Issue quotes and convert to invoices in clicks
- Log job variations to avoid disputed bills
- Automate payment reminders so you’re not always chasing
For a detailed look at getting started, see our 48-Hour Xero Setup Guide for Small Businesses (2026).
Is the Xero Cost Worth It Compared to Spreadsheets?
Comparing Real Costs: Subscription vs. Missed Invoices
Spreadsheets and paper folders might seem free, but small mistakes and late payments can cost serious money. What’s the real Xero cost? For most single-trade businesses, it’s the price of a few bacon butties a month. In return, you get a tool that helps avoid missed invoices, duplicate payments, or confused cash flow.
- Get paid faster with easy-to-send invoices
- Spot slow payers before it bites cash flow
- Cut time checking and rechecking jobs in the evenings
For more on what you’re getting for your money, read Xero Cost Explained in 2026 for Small Businesses.
Xero Features for Trade Businesses: What Matters?
The Key Tools for Builders, Plumbers, Electricians & More
Xero goes way beyond basic bookkeeping. You can attach receipts direct from your van, track supplier invoices for materials, handle job variations, and deal with VAT submissions (MTD-compliant). If you have subcontractors, you can also manage CIS deductions and keep compliant with HMRC with minimal fuss.
- Easy quote conversion (reduce admin and disputes)
- Automatic bank reconciliation (see money in and out quickly)
- Expense receipt capture via mobile app
- VAT and CIS support (no more late-night calculations)
Can You Use Xero On the Go?
Mobile App and Tools for Tradespeople
Xero’s mobile app is built for busy days. Send a quote from the van, snap a receipt when picking up supplies, or check job payments between sites. The interface is simple, so you don’t need to be an accountant to use it.
On-the-tools tip: Always upload job photos and receipts straight into Xero after finishing on site—no more lost paperwork at tax time.
Does Xero Help with VAT, CIS & Compliance?
Staying on Top of HMRC Rules
If you’re over the VAT threshold or doing CIS work, Xero gives you dedicated features to keep you compliant. Submit digital VAT returns, track CIS deductions for payments to or from subcontractors, and hold all proof HMRC could ask for in one place.
- Keep digital records for MTD
- Generate VAT and CIS reports for your accountant
- Fewer worries near deadlines thanks to notifications and reminders
Integrating Xero With Your Other Trade Software
App Connections for Quotes, Schedules & Materials
Xero can integrate with popular tools for job management, scheduling, and materials ordering. Whether you use an app for scheduling (like Tradify or similar), or want to pull payments direct from your merchant account, Xero helps streamline everything by keeping financials in one place. Find more integration options and advice at Xero Integrations in 2026: What’s Worth Connecting?.
How Does Xero Pricing Stack Up Against the Competition?
Comparing with Other Accounting Apps
Xero’s entry-level plan is among the most affordable, especially during promotional periods. The Standard and Premium plans are comparable in price to other well-known UK accounting tools but offer more flexibility for growing businesses. Plus, there’s 24/7 online support if you get stuck outside standard office hours.
Special Xero Discounts, Free Trials, and Contract Terms
Starter Offers and How to Cancel
New customers can try any Xero plan free for 30 days, with no credit card required and no obligation. There are regular introductory offers, such as discounted rates for three months. If you decide later that Xero isn’t the right fit for your trade business, you can cancel anytime without penalty.
- 30-day free trial access to all features
- No credit card needed up front
- Cancel online—no awkward phone calls
What Should UK Tradespeople Look For in an Accounting System?
Top Checklist Before Signing Up
- Mobile-friendly for use on site or in the van
- Simple to issue quotes and convert to invoices
- Automated payment reminders to cut down time chasing
- VAT and CIS compliance to avoid penalties
- Ability to integrate with job management software
- Easy access anywhere, no office needed
Fitting Xero Cost Into Your Trade Business Budget
Balancing Overheads and Value
Think of Xero as a trade tool: it costs a bit each month but saves you hours you’d otherwise spend on paperwork—and reduces the risk of missed payments or queries from HMRC. Many tradespeople find that even the mid-tier plan pays for itself with just one late payment chased down or one tax return submitted without hassle.
If you’re still unsure, check out What Is Xero? The Complete 2026 Guide for Small Businesses for an even broader overview.
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If you’re a UK tradesperson running your own business, you know how precious your time is. Chasing payments, quoting jobs, dealing with CIS or VAT, and trying to track your cash flow—all while trying to get work done on site—can make paperwork a constant headache. This guide breaks down Xero pricing for 2026, so you’ll know exactly what it’ll set you back, how it compares, and whether it really fits the way you work.
What Does Xero Actually Cost in 2026?
Understanding the Different Xero Plans
Xero has three main pricing tiers: Starter, Standard, and Premium. These costs are billed monthly, and you can scale up as your business grows. For tradies just starting out or looking to keep costs under control, it’s important to pick a plan that matches your day-to-day needs—no more, no less.
- Starter: For those just getting going (now £5.80/month for the first three months, then usually £29/month)
- Standard: For growing businesses with more invoices or bills (£10/month for three months, usually £50/month)
- Premium: For businesses handling multi-currency or more complex needs (£15/month for three months, later £75/month)
These are UK prices (excluding VAT). You can cancel anytime, and there’s always a 30-day free trial if you want to try it for yourself first.
Can Xero Cut Down My Admin Time?
Day-to-Day Scenarios for Tradespeople
Think of all the jobs you juggle: quoting, changing dates due to weather, logging materials, getting customer sign-off, and sending invoices. With Xero, you can create and send invoices from your phone, track overdue payments, and match payments to quotes—without stopping work for a laptop session.
On-the-tools tip: Set up invoice reminders in Xero to automatically chase payments while you’re still on site, reducing awkward payment conversations later.
- Issue quotes and convert to invoices in clicks
- Log job variations to avoid disputed bills
- Automate payment reminders so you’re not always chasing
For a detailed look at getting started, see our 48-Hour Xero Setup Guide for Small Businesses (2026).
Is the Xero Cost Worth It Compared to Spreadsheets?
Comparing Real Costs: Subscription vs. Missed Invoices
Spreadsheets and paper folders might seem free, but small mistakes and late payments can cost serious money. What’s the real Xero cost? For most single-trade businesses, it’s the price of a few bacon butties a month. In return, you get a tool that helps avoid missed invoices, duplicate payments, or confused cash flow.
- Get paid faster with easy-to-send invoices
- Spot slow payers before it bites cash flow
- Cut time checking and rechecking jobs in the evenings
For more on what you’re getting for your money, read Xero Cost Explained in 2026 for Small Businesses.
Xero Features for Trade Businesses: What Matters?
The Key Tools for Builders, Plumbers, Electricians & More
Xero goes way beyond basic bookkeeping. You can attach receipts direct from your van, track supplier invoices for materials, handle job variations, and deal with VAT submissions (MTD-compliant). If you have subcontractors, you can also manage CIS deductions and keep compliant with HMRC with minimal fuss.
- Easy quote conversion (reduce admin and disputes)
- Automatic bank reconciliation (see money in and out quickly)
- Expense receipt capture via mobile app
- VAT and CIS support (no more late-night calculations)
Can You Use Xero On the Go?
Mobile App and Tools for Tradespeople
Xero’s mobile app is built for busy days. Send a quote from the van, snap a receipt when picking up supplies, or check job payments between sites. The interface is simple, so you don’t need to be an accountant to use it.
On-the-tools tip: Always upload job photos and receipts straight into Xero after finishing on site—no more lost paperwork at tax time.
Does Xero Help with VAT, CIS & Compliance?
Staying on Top of HMRC Rules
If you’re over the VAT threshold or doing CIS work, Xero gives you dedicated features to keep you compliant. Submit digital VAT returns, track CIS deductions for payments to or from subcontractors, and hold all proof HMRC could ask for in one place.
- Keep digital records for MTD
- Generate VAT and CIS reports for your accountant
- Fewer worries near deadlines thanks to notifications and reminders
Integrating Xero With Your Other Trade Software
App Connections for Quotes, Schedules & Materials
Xero can integrate with popular tools for job management, scheduling, and materials ordering. Whether you use an app for scheduling (like Tradify or similar), or want to pull payments direct from your merchant account, Xero helps streamline everything by keeping financials in one place. Find more integration options and advice at Xero Integrations in 2026: What’s Worth Connecting?.
How Does Xero Pricing Stack Up Against the Competition?
Comparing with Other Accounting Apps
Xero’s entry-level plan is among the most affordable, especially during promotional periods. The Standard and Premium plans are comparable in price to other well-known UK accounting tools but offer more flexibility for growing businesses. Plus, there’s 24/7 online support if you get stuck outside standard office hours.
Special Xero Discounts, Free Trials, and Contract Terms
Starter Offers and How to Cancel
New customers can try any Xero plan free for 30 days, with no credit card required and no obligation. There are regular introductory offers, such as discounted rates for three months. If you decide later that Xero isn’t the right fit for your trade business, you can cancel anytime without penalty.
- 30-day free trial access to all features
- No credit card needed up front
- Cancel online—no awkward phone calls
What Should UK Tradespeople Look For in an Accounting System?
Top Checklist Before Signing Up
- Mobile-friendly for use on site or in the van
- Simple to issue quotes and convert to invoices
- Automated payment reminders to cut down time chasing
- VAT and CIS compliance to avoid penalties
- Ability to integrate with job management software
- Easy access anywhere, no office needed
Fitting Xero Cost Into Your Trade Business Budget
Balancing Overheads and Value
Think of Xero as a trade tool: it costs a bit each month but saves you hours you’d otherwise spend on paperwork—and reduces the risk of missed payments or queries from HMRC. Many tradespeople find that even the mid-tier plan pays for itself with just one late payment chased down or one tax return submitted without hassle.
If you’re still unsure, check out What Is Xero? The Complete 2026 Guide for Small Businesses for an even broader overview.
You may like this article also
Tradify Pricing 2026: Full Breakdown of Plans, Features and Real-World Costs
Tradify Cost Explained in 2026: Is It Really Worth It for a Small Trade Business?
How to Use the Tradify App in 2026 to Speed Up Invoicing and Get Paid Faster
Tradify vs Old-School Admin in 2026
Tradify for Plumbers in 2026
Tradify Cost vs Profit in 2026: How Many Extra Jobs Do You Need to Cover the Subscription?
What Is Tradify? The Complete 2026 Guide for Tradies Choosing Job-Management Software
Hidden Tradify Features in 2026 You’ll Use Every Day
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Going Paperless in Your Trade Business in 2026
Frequently Asked Questions
How much does Xero actually cost each month for UK tradespeople?
Xero’s starter plan starts at £5.80 per month (first three months) and then £29/month plus VAT. Standard and Premium plans are £10 and £15 per month for the first three months, then increase to £50 and £75 respectively. All plans can be cancelled any time and include a 30-day free trial.
Can I use Xero if I’m a sole trader or one-man band?
Yes. Xero’s Starter plan works well for sole traders and small businesses, letting you manage quotes, invoices, and basic finances from your phone. As your business grows, you can scale up your plan without losing access to earlier data.
Does Xero work with the Construction Industry Scheme (CIS)?
Absolutely. Xero supports CIS calculations, deductions, and digital reporting. This helps avoid manual errors and keeps you HMRC compliant whether you’re paying subcontractors or working as one yourself.
Can I handle VAT returns with Xero?
Yes. Xero is MTD-compliant, letting you complete and submit VAT returns online. VAT calculations are handled automatically based on your invoices and receipts, saving time and helping you stay on top of deadlines.
Can I send quotes and invoices from my mobile?
Definitely. Xero’s mobile app is built for on-the-go use. Create, edit, and send quotes before you leave site, issue invoices immediately after finishing a job, and check for overdue payments—all from your phone.
How do payment reminders in Xero work?
Payment reminders can be automated in Xero. Set them up once and Xero will send polite chaser emails to customers who haven’t paid. This takes the pressure off you and improves cash flow without the need for awkward conversations
Is Xero easy enough for non-accountants to use?
Yes. Xero is designed with tradespeople and small business owners in mind, using straightforward menus and workflows. Most actions—quotes, invoices, receipts—take just a few taps or clicks. There’s 24/7 online support if you do get stuck.
Can I connect Xero to my job management or scheduling software?
Yes, Xero integrates with a wide range of job management and scheduling tools commonly used in UK trade businesses. This lets you connect job progress, invoices, and payments for a much smoother workflow.
What if I need to cancel or switch plans with Xero?
You can cancel or change your Xero plan online at any time, with no penalties or awkward phone calls. If your business grows or changes direction, you can switch plans to match—no hassle or data loss.
How does Xero help with managing materials and expenses?
Xero makes it easy to photograph and upload receipts, track expenses per job, and match costs against invoices. This not only keeps you organised for tax time, but helps with job pricing and spotting where you might be losing profit on materials.
Is there support if I get stuck with Xero?
Yes. Xero provides 24/7 online support. There’s access to help guides, video tutorials, and live help from real agents if you need it—even outside the usual office hours.