If you're a tradesperson choosing between QuickBooks and Xero, you've probably spent too long reading generic comparison articles written for office workers. This one is different. It's written specifically for UK tradespeople who need CIS compliance, Making Tax Digital support, on-site invoicing, and software that works from a van.
Both platforms are solid. Both handle the basics. But they differ in ways that matter when you're running a trade business.
Here's the honest breakdown.
Quick Comparison Table
| Feature | QuickBooks Online | Xero | |---|---|---| | Starting price | £5/month (Simple Start) | £10/month (Early) | | CIS compliance | Yes (all plans) | Yes (all plans) | | MTD ITSA ready | Yes | Yes | | VAT filing | Direct to HMRC | Direct to HMRC | | Bank feeds | Open Banking | Open Banking | | Mobile app | Good | Very good | | Receipt capture | Photo scan | Photo scan | | Invoicing | Unlimited (all plans) | Limited on Early plan | | Mileage tracking | Built in | Via add-on | | Multi-currency | Plus plan only | All plans | | UK market share | Second | First | | Accountant compatibility | High | Very high | | Free trial | 30 days | 30 days |
Pricing Breakdown (UK, April 2026)
QuickBooks Online
| Plan | Price | What you get | |---|---|---| | Simple Start | £5/month | 1 user, invoicing, expenses, bank feeds, MTD, basic reports | | Essentials | £15/month | 3 users, bills, time tracking, multi-currency | | Plus | £30/month | 5 users, inventory, project tracking, budgets |
QuickBooks frequently runs promotions (50-70% off for the first few months). Check the current offer before signing up.
Xero
| Plan | Price | What you get | |---|---|---| | Early | £10/month | 20 invoices/month, 5 bills, bank feeds, MTD | | Growing | £25/month | Unlimited invoices, bills, CIS, multi-currency, projects | | Established | £50/month | Multi-currency, expenses, analytics, bulk reconciliation |
Xero's Early plan limits you to 20 invoices per month. If you're sending more than 20 invoices a month, you need the Growing plan at £25/month.
Price verdict
QuickBooks is cheaper at the entry level (£5 vs £10). But the moment you need CIS features or unlimited invoicing, both platforms cost roughly the same (£15-25/month). Price alone should not be your deciding factor.
CIS Compliance (Construction Industry Scheme)
This is where it matters for tradespeople. If you're a subcontractor or contractor in construction, you need CIS support.
QuickBooks
- CIS deductions calculated automatically on invoices
- CIS monthly returns filed directly with HMRC
- Contractor and subcontractor support
- CIS-specific reports
- Available on all plans
Xero
- CIS deductions applied to invoices and bills
- CIS monthly returns prepared (filed via HMRC gateway)
- Contractor and subcontractor tracking
- CIS-specific reports and summaries
- Available on Growing plan and above (£25/month)
CIS verdict
Both handle CIS well. QuickBooks includes CIS on its cheapest plan (£5/month). Xero requires the Growing plan (£25/month). If CIS is your main requirement and budget matters, QuickBooks wins on value.
Making Tax Digital (MTD) Compliance
From April 2026, self-employed people and landlords earning over £50,000 must file quarterly digital returns with HMRC. Both platforms handle this.
QuickBooks
- MTD ITSA compliant
- Quarterly submissions directly to HMRC
- VAT returns filed digitally
- Automatic calculations based on your records
Xero
- MTD ITSA compliant
- Quarterly submissions directly to HMRC
- VAT returns filed digitally
- Dashboard showing quarterly position
MTD verdict
No meaningful difference. Both are HMRC-approved MTD software. Pick either with confidence.
Invoicing for Tradespeople
You quote in a customer's kitchen. You invoice from a van. You need this to work on a phone.
QuickBooks
- Unlimited invoices on all plans
- Customisable templates (add your logo, payment terms)
- Automatic payment reminders
- Online payment links (customers pay by card)
- Recurring invoices for maintenance contracts
- Convert quotes to invoices in one tap
Xero
- 20 invoices/month on Early plan (unlimited on Growing)
- Highly customisable templates
- Automatic payment reminders
- Online payment via Stripe, GoCardless, PayPal
- Recurring invoices
- Quote-to-invoice conversion
- Better invoice design options than QuickBooks
Invoicing verdict
Xero's invoices look better and offer more customisation. QuickBooks gives you unlimited invoicing from day one. If you send fewer than 20 invoices a month and care about presentation, Xero's Early plan works. If volume matters, QuickBooks' Simple Start is better value.
Mobile App (Working On-Site)
You're not at a desk. The mobile app is your primary interface.
QuickBooks mobile
- Create and send invoices
- Photograph receipts
- Track mileage (automatic GPS tracking)
- Check bank transactions
- Record expenses
- Functional but not beautiful
Xero mobile
- Create and send invoices
- Photograph and categorise receipts
- Bank reconciliation
- Check cash flow
- Approve bills
- Clean, intuitive interface
Mobile verdict
Xero's mobile app is more polished and intuitive. QuickBooks' app is functional but slightly clunkier. For tradespeople who live on their phone, Xero's app is noticeably better for daily use. QuickBooks has better built-in mileage tracking, which matters if you drive between jobs.
Integrations That Matter for Trades
QuickBooks integrates with:
- Jobber (job management)
- Tradify (trade management)
- ServiceM8 (field service)
- Stripe (payments)
- PayPal
- GoCardless (direct debits)
- HubSpot CRM
Xero integrates with:
- Jobber
- Tradify
- ServiceM8
- Fergus (trade management)
- Commusoft (field service)
- Stripe
- GoCardless
- PayPal
- Hubdoc (receipt management, included free)
Integrations verdict
Xero has a slightly broader ecosystem, particularly for UK trade software. Both integrate with the major job management platforms (Jobber, Tradify, ServiceM8). Xero's free Hubdoc inclusion for receipt management is a genuine bonus.
Best for Sole Traders
If you're a sole trader (plumber, electrician, carpenter working alone), here's what matters:
Choose QuickBooks if:
- You want the cheapest entry point (£5/month)
- CIS compliance on the cheapest plan matters
- You drive a lot between jobs (built-in mileage tracking)
- Your accountant prefers QuickBooks
- You want simplicity over features
Choose Xero if:
- You want a better mobile experience
- You plan to grow (Xero scales well)
- You want better invoice design
- Your accountant prefers Xero (most UK accountants do)
- You want Hubdoc for receipt management included
Sole trader verdict
For a sole trader plumber or electrician doing under £85k revenue, QuickBooks Simple Start at £5/month is hard to beat on value. You get CIS, MTD, unlimited invoicing, and bank feeds. If you're willing to spend £10-25/month for a better experience, Xero is the more polished product.
Best for Limited Companies
If you run a limited company (even a small one), the requirements shift.
Choose QuickBooks if:
- You need project tracking (Plus plan)
- You want time tracking for employees
- Budget is tight
Choose Xero if:
- You have 2+ employees (better payroll integrations)
- You need multi-currency (working with international suppliers)
- Your accountant manages your accounts (Xero's accountant portal is superior)
- You want better financial reporting
Limited company verdict
Xero wins for limited companies. The accountant portal alone justifies the choice. Your accountant can log in, review your books, and prepare your company accounts without you exporting anything. The payroll integrations are also stronger.
What UK Accountants Actually Prefer
This matters more than most people realise. Your accountant's familiarity with the software directly affects your costs.
Xero: Approximately 60-65% of UK small business accountants prefer or recommend Xero. It's the dominant platform in the UK accounting profession. If you ask your accountant which software to use, they'll likely say Xero.
QuickBooks: Approximately 25-30% of UK accountants prefer QuickBooks. It's well-known and supported, but not the default recommendation.
Why this matters: An accountant who knows your software inside out spends less time on your books. Less time means lower fees. If your accountant charges £150/hour and saves 2 hours per quarter because they know Xero, that's £1,200/year in savings. More than the software costs.
Action: Ask your accountant what they prefer before choosing. Their answer should heavily influence your decision.
The Switch: Moving Between Platforms
Already using one and thinking about switching?
QuickBooks to Xero: Xero has a built-in migration tool that imports your QuickBooks data (chart of accounts, invoices, contacts, bank transactions). Takes about 1-2 hours for a small business.
Xero to QuickBooks: QuickBooks also has import tools, though they're slightly less automated. Expect 2-4 hours for migration.
The reality: Switching mid-year is painful for tax purposes. If you're going to switch, do it at the start of your financial year (usually April for sole traders, or your company year-end for limited companies).
Verdict: QuickBooks vs Xero for UK Tradespeople
Choose QuickBooks Online if:
- You're a sole trader who wants the cheapest option
- CIS compliance on the entry-level plan matters
- You drive between jobs and want built-in mileage tracking
- Your accountant recommends it
Choose Xero if:
- You want the best overall experience
- Your accountant prefers it (most do)
- You plan to grow your business
- You want better invoice design and mobile app
- You're a limited company
The honest answer: For most UK tradespeople, Xero is the better long-term choice. It's what your accountant probably uses, the mobile app is superior, and the ecosystem of trade integrations is slightly broader. QuickBooks is a perfectly good alternative that costs less at the entry level.
If you're starting fresh and have no preference, go with Xero Growing at £25/month. It includes everything a tradesperson needs: unlimited invoicing, CIS, MTD, bank feeds, and Hubdoc for receipts.
If budget is your primary concern and you're a sole trader, QuickBooks Simple Start at £5/month does the job.
Either way, using proper accounting software beats spreadsheets. The tax savings, time savings, and compliance peace of mind pay for themselves within the first quarter.
Related Guides
- Best Accountancy Software for UK Sole Traders - Full breakdown of accounting options beyond QuickBooks and Xero
- Best Invoicing Software UK 2026 - Invoicing-focused comparison including free options
- Making Tax Digital Phase 2 - Everything you need to know about MTD ITSA compliance
- FreeAgent vs Xero for Self-Employed Trades - Head-to-head for self-employed tradespeople