Guides Comparisons Keepr vs Xero for UK sole traders

Keepr vs Xero for UK sole traders

MTD free with unlimited invoicing, against Xero's £18 entry plan and its 20-invoice cap.

Keepr files MTD for Income Tax on its free plan, with unlimited invoices. Xero lists MTD on all four of its UK plans, the cheapest being Ignite at £18 a month plus VAT, which caps you at 20 invoices and 10 bills a month. Pass either cap and you are on Grow at £39 plus VAT, so £46.80. That is the number to compare, because 20 invoices and 10 bills is a low ceiling if you bill per project or per client.

Price compared

KeeprXero
Cost to file MTD£0. It is on the free plan.Ignite £18 + VAT = £21.60, capped at 20 invoices and 10 bills a month
Unlimited invoicingFreeGrow £39 + VAT = £46.80
Paid planPro £9/month or £84/yearComprehensive £55, Ultimate £70, both + VAT
Introductory offer14-day Pro trial, no card. The free plan never expires.90% off for six months, then the full rate
Xero publishes its prices excluding 20% VAT, so Ignite at £18 is £21.60 leaving your account and Grow at £39 is £46.80. Keepr does not add VAT at checkout, so £9 is £9.
Keepr is not right for you if you let a property. Keepr covers sole trader self-employment income and does not file landlord property income. MTD for Income Tax applies to property income too, so you need software that files it. For what Keepr does cover, see Making Tax Digital for sole traders.

Feature by feature

KeeprXero
PriceFree plan £0. Pro £9/month or £84/year.Ignite £18, Grow £39, Comprehensive £55, Ultimate £70 - all per month + VAT.
Free tierYes - unlimited invoices, expenses, time tracking, projects and clients, permanently free.Their pricing page lists a free trial and no free plan.
MTD for Income TaxYes, for sole trader self-employment income. Included on the free plan.All four plans listed as MTD for Income Tax ready, per their pricing page.
InvoicingUnlimited, on both plans.Capped at 20 a month on Ignite; unlimited from Grow upwards.
ExpensesYes, with receipt capture.Yes. Their pricing page lists expense claims from the Grow plan, for one user.
Time trackingYes, included free.Xero Projects, first included on Ultimate at £70 + VAT.
Project profitabilityYes, included free.Xero Projects, first included on Ultimate at £70 + VAT.
MileageYes, free. Enter from and to, it works out the miles and the claimable amount at HMRC rates.Yes. Their pricing page lists mileage claims from the Grow plan, for one user.
Mobile appsNo native app yet - the web app works on a phone.Yes, iOS and Android.
Bank feedsNo automatic feeds. Upload a PDF bank statement to reconcile.Yes, automatic bank feeds.
VAT on topNone added. £9 is £9.Add 20%. £18 is £21.60.
Built forSole traders and freelancers only. Nothing to switch off.Full small-business accounting, from payroll to inventory, so most of it is aimed elsewhere.

Where Keepr is stronger

For a sole trader, almost everything about the fit. Keepr costs nothing to file MTD quarterly updates, has no invoice cap on its free plan, and includes time tracking, project profitability and mileage. Xero first includes Projects on Ultimate, at £70 a month plus VAT. Xero's power is aimed at businesses with staff and stock, and a freelancer invoicing a few clients still pays £21.60 to £46.80 a month for it.

Who each one is for

Xero fits someone with employees, stock or several trading currencies, and anyone whose accountant works in it daily.

Keepr fits a sole trader invoicing clients and tracking expenses who wants MTD handled without paying for an accounting platform they will use a tenth of.

Common questions

Is Keepr cheaper than Xero?
For filing MTD, yes: Keepr does it on the free plan, so the cost is £0 against £21.60 a month for Xero Ignite, which also caps you at 20 invoices and 10 bills a month. Unlimited invoicing on Xero starts at £46.80. Keepr Pro, which adds automation rather than MTD, is £9 a month.
Is Keepr recognised by HMRC for Making Tax Digital?
Keepr has been listed on GOV.UK's software choices list since 28 August 2026, for sole trader self-employment income. That is a technical check rather than an endorsement; HMRC does not recommend any product or provider.
Which Xero plan do I need for MTD for Income Tax?
Xero lists MTD for Income Tax on all four UK plans, so the question is really which one you can live with. Ignite at £18 plus VAT caps you at 20 invoices and 10 bills a month; unlimited invoicing starts at Grow, £39 plus VAT.
Does Xero have a free plan?
Their pricing page lists a free trial and no free plan. Keepr's free plan is permanent and includes MTD quarterly updates.
Is Xero overkill for a sole trader?
Xero positions itself as full small-business accounting, with payroll, inventory and multi-currency on its higher plans. A sole trader who invoices, logs expenses and files MTD uses none of that, and the cheapest plan that carries it is £21.60 a month against £0 on Keepr.

Prices checked against xero.com/uk/pricing-plans on 5 September 2026. Software pricing changes often, so treat anything older than a few months as indicative.

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