Is FreeAgent cheaper than Xero?

FreeAgent costs £19/month (after an initial discount period). Xero starts at £15/month for Starter but increases to £33/month for Growing and £59/month for Established. For a freelancer's needs, FreeAgent often provides better value despite a similar mid-tier price.

FreeAgent vs Xero (2026): Which Accounting Tool Is Better for Freelancers?

By ToolVS Research Team · Updated April 10, 2026

Share:𝕏 in f r/

Quick verdict: FreeAgent wins for UK/Ireland freelancers, contractors, and sole traders who want purpose-built tax filing support including Self Assessment and IR35. Xero wins for small businesses wanting scalable accounting with multi-currency, payroll, and a larger ecosystem of integrations.

FreeAgent

8.6/10

Best for UK freelancers & contractors

Xero

8.4/10

Best for small businesses needing scale

Feature Comparison

Feature	FreeAgent	Xero
Pricing	£19/mo (after 6-month 50% discount)	£15–£59/mo depending on plan
Self Assessment	Built-in SA filing for sole traders	Not built in — requires integration
IR35 Tools	IR35 compliance tools included	Not available
Invoicing	Unlimited invoices, time tracking	Unlimited on Growing+ plans
Multi-currency	Limited	Full multi-currency on Established plan
Payroll	Basic payroll for small teams	Full payroll module available
Integrations	600+ via add-ons	1,000+ integrations
Best For	UK/Ireland freelancers, sole traders	SMBs in UK, AU, NZ, US globally

Which do you use?

FreeAgent

Xero

Who Should Choose What?

→ Choose FreeAgent if:

You're a UK or Ireland freelancer, contractor, or sole trader. You want built-in Self Assessment tax filing and IR35 compliance tools without needing a separate service. Many NatWest and RBS business customers get FreeAgent free with their account.

→ Choose Xero if:

You're a small business (not just freelancing) with employees or contractors. You need multi-currency support, a richer integration ecosystem, or plan to scale to a larger team. Xero's global presence also makes it better for international businesses.

Frequently Asked Questions

Is FreeAgent or Xero better for freelancers?

FreeAgent is better for UK freelancers specifically. Its Self Assessment filing, IR35 tools, and contractor-focused interface are hard to beat. Xero is more powerful for small businesses with employees, but freelancers often find it over-engineered for their needs.

Does NatWest offer FreeAgent for free?

Yes — NatWest, RBS, and Ulster Bank business account holders can access FreeAgent at no extra cost as part of their business banking. This makes FreeAgent a very cost-effective choice for UK freelancers already banking with these institutions.

Get our free SaaS Buyer's Guide (PDF)

Save hours of research. We cover pricing traps, hidden fees, and how to negotiate better deals.

Join 0 SaaS buyers. No spam, unsubscribe anytime.

Share:𝕏 in f r/