Xero Simple for MTD: what £7 a month buys

We build QuarterFile, a competing MTD tool, so read this knowing that. Every fact below is dated so you can check it.

The facts here come from our own market research, verified 16 July 2026, with Xero’s published pricing page checked again on 28 July 2026. Each fact below carries its own date. Prices and features change, so confirm them on Xero’s own site before you buy.

What does Xero Simple cost?

Xero Simple was £7 plus VAT a month when we checked in July 2026. It was also explicitly excluded from Xero’s price rise dated 1 September 2026, which took the Ignite plan from £16 to £18 a month and Grow from £37 to £39. So the £7 was holding while the plans above it went up.

Three things from Xero’s pricing page as of 28 July 2026: the increase is announced there (“Xero subscription prices are increasing from 1 September 2026”); an 80% off promotion for the first 6 months was running for new UK customers, with Simple named among the eligible base plans; and Hubdoc is named as included in Simple. All Xero prices are shown per month excluding VAT, and subscriptions renew monthly until cancelled.

What does Xero Simple include for MTD?

Verified 16 July 2026, the plan covered both MTD for Income Tax filings and the record keeping around them:

• MTD for Income Tax quarterly updates, the summary HMRC wants four times a year.
• The final declaration, the once-a-year job that settles the figures (the first one is due 31 January 2028).
• Bank feeds, so transactions arrive from your bank account instead of being typed in. Xero’s own pricing FAQ (28 July 2026) says feeds are free for most customers, though “some UK banks charge fees for bank feeds that we will pass on to you”.
• Hubdoc receipt capture, for photographing receipts and bills.

Who does Xero Simple suit?

On those features, it suits someone who wants the typing done for them. Bank feeds mean transactions turn up on their own, and receipt capture gives the paperwork somewhere to go, so the quarter becomes a review job rather than a data-entry job. Having both filings in one plan matters too, because the final declaration is the deadline that always counts. It suits you less well if your first test is cost, because any paid plan has to earn its keep against tools that are genuinely free.

Is it worth paying when free MTD software exists?

That depends on what the saved typing is worth to you. Free recognised software really does exist, with no cost and no card, and our guide to the best free MTD software lists the options with the limit each one carries. At £7 plus VAT a month you are spending about £84 plus VAT a year, so the question is whether automatic transactions and receipt capture beat that number for you. Both answers are reasonable, and plenty of people land on each.

Where QuarterFile fits

We are not a neutral party here. QuarterFile’s HMRC recognition is in progress. Xero is a full accounting system with years of work behind it, and if bank feeds and receipt capture are what you want, it is one of the places that has them today. QuarterFile is built for a narrower job, the quarterly update and the final declaration for one landlord or sole trader, at £12.50 a quarter for Plus with a free forever manual tier underneath it. Different shapes, so pick the one that matches your affairs.

Next steps: read the best free MTD software before paying for anything, check the current price on the provider’s own site because ours is a July 2026 snapshot, and whatever you choose, let us email you 7 days before each deadline. No account, no software sign-up.