Regulas vs Xero for Making Tax Digital
Xero is one of the UK's most popular cloud accounting platforms, used by hundreds of thousands of small businesses and accountancy practices. But is it the best choice for Making Tax Digital for Income Tax?
Feature comparison
| Feature | Regulas | Xero |
|---|---|---|
| Making Tax Digital quarterly submissions | ||
| Final declaration filing | ||
| Live HMRC tax calculations | ||
| AI-powered categorisation | ✓ (bank rules) | |
| UK & foreign property support | Limited | |
| Section 24 finance cost restriction | ✓ Automatic | |
| Agent/accountant portal | ||
| HMRC guidance built in | ||
| Free tier | ✓ (£0/mo) | |
| Bank feeds | Coming soon | |
| Invoicing | ||
| VAT MTD | ||
| Multi-currency | ||
| Payroll | ✓ (Gusto add-on) |
Pricing comparison
| Plan | Regulas | Xero |
|---|---|---|
| Free / Cheapest | £0/month | £15/month (Starter) |
| Mid-tier | £5.99/month | £30/month (Standard) |
| Top tier | £12.99/month | £42/month (Premium) |
| Agent / Enterprise | £29.99/month | Xero HQ (partner pricing) |
Who should choose Regulas?
- Sole traders and landlords who need Making Tax Digital compliance without paying for a full accounting suite
- Anyone wanting a free Making Tax Digital option — Xero has no free plan
- Landlords needing automatic Section 24 mortgage interest handling
- Users who want HMRC tax calculations pulled live from HMRC, not software estimates
- Those who find Xero's feature set overwhelming for quarterly submissions
Who should choose Xero?
- Businesses already invested in the Xero ecosystem (bank feeds, invoicing, payroll)
- Those needing MTD for VAT and MTD for Income Tax in one platform
- Users who need full double-entry bookkeeping or multi-currency
- Accountancy practices using Xero HQ to manage a large client base
The bottom line
Xero is a comprehensive accounting platform, but for many sole traders and landlords, it's more than they need — and more than they want to pay. If your goal is Making Tax Digital compliance, Regulas gets you there faster, cheaper, and with HMRC guidance at every step.
Making Tax Digital for Income Tax is mandatory from 6 April 2026 for those with qualifying income over £50,000. Both Regulas and Xero are building support. Verify on GOV.UK.
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Making Tax Digital compliance without the complexity. Free tier, no credit card required.
Disclaimer: Feature and pricing information is based on publicly available data as of March 2026 and may change. Xero is a trademark of Xero Limited. Regulas is not affiliated with Xero.