F The Hours or Xero for a UK freelancer
Xero is accounting software for businesses of most sizes, with an entry plan for the smallest. Time tracking, expenses and mileage sit on its higher plans. F The Hours starts from time tracking and keeps to what one self-employed person needs.
Where Xero is stronger
- Bank feeds on every plan, and VAT returns submitted to HMRC.
- Ready for Making Tax Digital for Income Tax on every plan.
- A large ecosystem of apps and accountants who work in it.
- Room to grow: payroll, multiple currencies and projects on the higher plans.
Where F The Hours differs
- Time tracking is the first thing in F The Hours; on Xero it is on the Ultimate plan at £70 a month after the introductory period.
- Expenses and mileage are in F The Hours from the start; on Xero they begin at the Grow plan.
- Xero’s entry plan caps invoices at 20 a month. F The Hours does not cap them.
- Free while the beta is open, then Starter £3.99 and Pro £8.99 a month. No bank feeds or filing yet.
Side by side
What each does today, in its own words where they are quoted. Checked on 8 September 2026.
| F The Hours | Xero | |
|---|---|---|
| Time tracking | Yes. By client, project and task type; each entry carries its rate. | Ultimate plan only. "Track time and costs for projects." |
| Invoicing | Yes. A branded PDF from the hours you logged. No online card payment yet. | Yes. The Ignite plan is limited to 20 invoices a month; the others are unlimited. |
| Expenses | Yes, under the categories HMRC recognises. No receipt photo capture yet. | From the Grow plan. |
| Mileage | Yes, at the HMRC approved rates. | From the Grow plan. |
| Home office allowance | Yes, the flat-rate allowance and the actual-cost method. | Not stated on the pricing page checked. |
| Tax estimate through the year | Yes. Income tax and National Insurance from what you have logged, all year, by year, month and week. | Not stated on the pricing page checked. |
| Self Assessment figures | Yes. The SA103 boxes filled from your records, a readiness check, and a spreadsheet export. | Not stated on the pricing page checked. |
| Files the return to HMRC | No. You enter the figures in your HMRC account yourself. | Not stated on the pricing page checked. |
| Bank feeds | Not yet. On the roadmap. | Yes, on every plan. |
| VAT | Not yet. On the roadmap. | Yes. "Submit VAT returns to HMRC." |
| Making Tax Digital for Income Tax | Not yet. On the roadmap. | Yes. "MTD for Income Tax ready." |
| Working with an accountant | Exports only: CSV and a full JSON export you run yourself. | Not stated on the pricing page checked. |
| Phone | In a browser on any device. No app. | Not stated on the pricing page checked. |
| Price | Free while the beta is open. Starter £3.99 and Pro £8.99 a month when billing starts. | Ignite £18, Grow £39, Comprehensive £55, Ultimate £70 a month plus VAT, each with 90% off for the first six months. One month free to start. |
Read from Xero UK pricing plans on 8 September 2026. Prices and plans change; check their site before you decide, and tell us if something here is out of date.
Try the part that is free either way
The tax calculator uses the same rates as the app and needs no account. The beta is free while it is open, with nothing to cancel.
Also compared: FreeAgent · QuickBooks · a spreadsheet