Xero is a powerful accounting platform — but it is designed for businesses of all sizes, including growing companies with employees, multi-currency operations, and complex inventory. Many sole traders and landlords find that Xero has more complexity than they need, and that the features they do need — specifically MTD ITSA quarterly filing — require a more expensive plan or additional setup.
The most common complaints from sole traders looking to switch from Xero:
| Feature | Margin (Standard £14.99/mo) | Xero (Starter from ~£16/mo) |
|---|---|---|
| MTD VAT returns to HMRC | ✓ Direct, built in | ✓ Supported |
| MTD ITSA quarterly updates | ✓ Full auto-filing included | ~ Via bridging or higher plan |
| End of Period Statement (EOPS) | ✓ Built in, one-click | ~ Requires additional steps |
| Final Declaration to HMRC | ✓ Built in | ~ Via Self Assessment integration |
| Auto-filing (files automatically on due date) | ✓ 08:00 daily auto-filing | ✗ Not available |
| In-year tax estimate | ✓ Real-time, annualised from YTD | ~ Via add-on only |
| Open Banking (automatic bank sync) | ✓ Via TrueLayer — nightly sync | ✓ Via bank feeds |
| AI receipt scanning | ✓ Included in Standard | ✓ Via Hubdoc (included) |
| AI transaction categorisation | ✓ 40+ merchant rules, confidence scored | ✓ Smart matching |
| Payroll & RTI to HMRC | ✓ Included | ~ Add-on (from £5/mo) |
| Companies House filing | ✓ iXBRL annual accounts | ~ Via third-party integration |
| Landlord multi-property income | ✓ Multi-source MTD cockpit | ~ Requires manual configuration |
| Free plan | ✓ Free forever, unlimited transactions | ✗ No free plan |
| Starting price (month-to-month) | ✓ £14.99/month | From ~£16/month |
Comparison based on publicly available information as of September 2026. Xero plans and pricing may vary. Always verify current pricing on the Xero website.
Margin's free plan lets you get started with unlimited transactions, invoicing, and bank reconciliation before spending a penny. Most sole traders are filing their first quarterly MTD update within a day of signing up.
Switching accounting software sounds daunting, but for a sole trader it is typically straightforward. Margin supports CSV import for transactions, bank statements, and invoice history. Most users complete the switch in an afternoon.
Once imported, connect to HMRC via Margin's one-click authorisation and you are ready to submit quarterly updates.
Yes. Margin supports MTD for VAT (submitting VAT returns directly to HMRC) and MTD for Income Tax (quarterly updates, EOPS, and Final Declaration) in the same application.
Absolutely. Margin is designed to be used directly by sole traders and landlords. The onboarding wizard gets you from zero to HMRC-connected in under 3 minutes. If you do work with an accountant, they can access your account via the Accountant plan's practice dashboard.
Margin connects directly to HMRC via the Making Tax Digital API. You authorise Margin once using your HMRC Government Gateway credentials, and all subsequent submissions go directly to HMRC — quarterly updates, VAT returns, EOPS, and Final Declarations.
Start on the free plan. You get unlimited transactions, invoicing, bank reconciliation, and reports. When you need MTD ITSA filing — or want Open Banking and AI bookkeeping — upgrade to Standard from £14.99/month. There is a 14-day free trial, no card required.
No credit card required. MTD ITSA filing, AI bookkeeping, and Open Banking included in the Standard plan.
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