Sage wins for most UK sole traders and landlords

Sage vs Xero: which is right for MTD ITSA?

Both Sage and Xero are HMRC-recognised for MTD ITSA. The decision between them usually comes down to two questions: do you do CIS work, and does your accountant have a preference?

CIS subcontractors: Sage wins clearly

If you work in construction under the Construction Industry Scheme, Sage Accounting Plus is the only mainstream platform with end-to-end CIS management:

• Subcontractor verification directly with HMRC
• Automatic CIS deduction calculation (20% or 30%)
• Monthly CIS return submission
• CIS-aware profit and loss reporting

Xero can record CIS deductions manually, but it lacks the automated verification and return submission that Sage provides. For CIS-heavy work, this is not a close decision.

Landlords: Sage edge

Sage has dedicated property income categories and landlord-specific reporting that align with HMRC Schedule A requirements. Xero handles property income adequately but without the same focus. For landlords with multiple properties, Sage is the stronger choice.

Accountant ecosystem: Xero wins

Xero has the larger UK accountant community. If you need an accountant who can work directly in your software — rather than just reviewing exports — Xero gives you more options.

MTD ITSA submissions: equivalent

Both platforms handle the full MTD ITSA workflow: quarterly updates, end-of-period statements, and final declarations. Neither has a material advantage for the submission process itself.

Price comparison

Plan level	Sage	Xero
Entry	£15/month (Start)	£16/month (Starter)
Mid	£30/month (Accounting)	£33/month (Standard)
Full CIS	£49/month (Accounting Plus)	Not available

Our verdict

CIS subcontractors: Sage. Multi-property landlords: Sage. Everyone else: ask your accountant, then try both trials. For straightforward sole traders, Zoho Books at £12/month undercuts both.