Xero vs FreeAgent
Verified ratings, real UK pricing and the compliance detail, weighed side by side — with a written verdict at the end.
Xero
Accounting Software
- United Kingdom
- Ireland
- New Zealand
- Australia
- United States
- Canada
- South Africa
- Live Chat
- Knowledge Base
- Forum
FreeAgent
Accounting Software
- United Kingdom
- Phone
- Knowledge Base
- Forum
Evenly matched on verified reviews — 4.1 against 4.1. Price and fit will decide this one, not the score.
The short version
What each one costs and how each one rates, side by side. Only the rows where leading means something are marked; vendor and availability are in the overview above.
| Detail | Xero | FreeAgent |
|---|---|---|
| What it costs | ||
| Starting priceLowest paid tier, excluding VAT | £16/mo | £19/mo |
| Free version | NoNo | YesYes |
| Free trial | YesYes | YesYes |
| How it rates | ||
| Overall ratingMean of verified Assaylist reviews | 4.1 | 4.1 |
| Verified reviewsVolume is evidence, not a score — this row is not a contest | 297 reviews | 297 reviews |
Highlighted where one clearly leads. Rows without a highlight are not a contest.
How reviewers score them
Across the four dimensions we ask every reviewer about — and, below, the star split each average is built from.
- Xero
- FreeAgent
| Dimension | Xero | FreeAgent | Gap |
|---|---|---|---|
| Ease of use | 4.0 | 4.0 | Level |
| Value for money | 4.0 | 4.0 | Level |
| Customer support | 3.9 | 4.0 | 0.1 to FreeAgent |
| Functionality | 4.0 | 4.0 | Level |
What each average is made of
Two products can share an average and not share a reputation. These bars show the star split behind each score.
| Product | 5 star | 4 star | 3 star | 2 star | 1 star |
|---|---|---|---|---|---|
| Xero | 42% (125 reviews) | 34% (100 reviews) | 15% (45 reviews) | 6% (18 reviews) | 3% (9 reviews) |
| FreeAgent | 42% (126 reviews) | 32% (96 reviews) | 16% (49 reviews) | 7% (20 reviews) | 2% (6 reviews) |
Feature by feature
Everything either vendor publishes, split into what separates them and what they share.
- Both products
- 14%
- Only Xero
- 1144%
- Only FreeAgent
- 1352%
25 features listed across both products.
What only one of them does
Xero
11- Best in class bank reconciliation
- Cash flow forecasting
- CIS calculations and subcontractor reports
- Industry benchmarking
+ 7 more in the table below
FreeAgent
13- Bank feeds
- CIS support
- Corporation Tax tracking
- Director Self Assessment
+ 9 more in the table below
Showing 25 of 25 features
| Detail | Xero | FreeAgent |
|---|---|---|
| Where they differ · 24 | ||
| Best in class bank reconciliation | YesYes | NoNo |
| Cash flow forecasting | YesYes | NoNo |
| CIS calculations and subcontractor reports | YesYes | NoNo |
| Industry benchmarking | YesYes | NoNo |
| MTD for Income Tax ready | YesYes | NoNo |
| Multiple currencies | YesYes | NoNo |
| Payroll with RTI and auto enrolment | YesYes | NoNo |
| Performance dashboards | YesYes | NoNo |
| Smart document capture | YesYes | NoNo |
| Unlimited users on every tier | YesYes | NoNo |
| Very large app marketplace | YesYes | NoNo |
| Bank feeds | NoNo | YesYes |
| CIS support | NoNo | YesYes |
| Corporation Tax tracking | NoNo | YesYes |
| Director Self Assessment | NoNo | YesYes |
| Dividend documentation | NoNo | YesYes |
| Expense and mileage tracking | NoNo | YesYes |
| Invoicing and estimates | NoNo | YesYes |
| Mobile app | NoNo | YesYes |
| MTD for Income Tax | NoNo | YesYes |
| Payroll | NoNo | YesYes |
| Radar business insights | NoNo | YesYes |
| Tax timeline with amounts and deadlines | NoNo | YesYes |
| Time tracking | NoNo | YesYes |
| Where they match · 1 | ||
| Making Tax Digital for VAT | YesYes | YesYes |
A dash means the vendor has not published a feature list — which is not the same as the feature being unavailable.
How they handle UK obligations
Checked against the vendor's own documentation or HMRC's published list. A dash means we have not verified it — never that it is missing.
| Detail | Xero | FreeAgent |
|---|---|---|
| Verified against vendor documentation | ||
| HMRC-recognised for MTD for VAT | YesYes | YesYes |
| HMRC-recognised for MTD for ITSA | YesYes | YesYes |
| Making Tax Digital ready | YesYes | YesYes |
| RTI-compliant payroll | YesYes | YesYes |
| Pension auto-enrolment | YesYes | Not listedNot listed |
| CIS support | YesYes | YesYes |
| Open Banking bank feeds | YesYes | YesYes |
| Data residency | Not stated | United Kingdom |
| UK-based support | UK support team | UK based support team |
What each tier costs
Both line-ups on one ladder, so the middle tier on one side sits next to the middle tier on the other.
Xero
FreeAgent
Ignite
£16/mo
- Send quotes and 20 invoices
- Enter 10 bills
- Submit VAT returns to HMRC
Free with NatWest, RBS, Ulster or Mettle
FreeLower
- Full product, not a limited version
- For as long as you hold the account
- Mettle requires one transaction a month
Grow
£37/mo
- Unlimited invoices and quotes
- Automate bill entry
- Payroll for 1 person
Sole trader
£19/moLower
- Self Assessment preparation
- MTD for Income Tax
- Invoicing and expenses
Comprehensive
£50/mo
- Payroll for 5 people
- 90 day cash flow forecast
- Expenses for 5 users
Limited company
£33/moLower
- Corporation Tax tracking
- Dividend documentation
- Director Self Assessment
Rungs are matched by position in each vendor’s own line-up, not by what the tiers include — an entry plan on one side may cover more than the other. Prices exclude VAT unless stated, and per-seat plans are quoted per seat. Always confirm on the vendor’s own site.
Which should you choose?
Two answers, because there are two right ones depending on what you need.
Choose Xero if
- It costs less to get started — £16/mo against £19/mo.
- It lists 11 features FreeAgent does not, including best in class bank reconciliation.
Choose FreeAgent if
- There is a free tier you can stay on, which Xero does not offer.
- It lists 13 features Xero does not, including bank feeds.
On verified Assaylist reviews, Xero currently rates 4.1 against 4.1 for FreeAgent. That gap is not the whole story: Xero starts at £16/mo and FreeAgent at £19/mo, so the right answer depends on the tier you actually need and on which one handles your UK obligations. Read both profiles before you commit, and confirm current pricing on the vendor's own site.
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