Pulse vs Xero for sole traders
Xero is one of the biggest names in accounting software, and its Simple plan is aimed at sole traders getting ready for Making Tax Digital. Pulse is built for sole traders too. Here’s an honest side by side, so you can pick the one that fits how you work.
- Every price includes VAT, because most sole traders can’t claim it back
- We link to Xero’s own pages, so you can check anything for yourself
- Where Xero is the better choice, we say so
Pulse and Xero Simple at a glance
We’ve compared Small Business + MTD, our closest match, with Xero Simple, Xero’s plan for sole traders who aren’t VAT registered.
| What you get | Pulse Small Business + MTD | Xero Simple |
|---|---|---|
| Price a month, including VAT | £10.99The same price every month | £8.40Shown as £7 plus VAT. 90% off for the first 6 months, so £0.84 a month to start |
| Invoices | UnlimitedPlus quotes that turn into invoices in one click | 10Plus quotes. Xero points you to its Ignite plan for more |
| Customers paying online | YesA Pay online button using your own Stripe, SumUp or PayPal.Me link | Yes |
| Mileage | YesLog journeys in the app by postcode or location | Not includedClaiming expenses and mileage is listed as excluded |
| Receipt scanning | Yes25 scans a month, unlimited on Small Business Complete | YesReceipts only |
| Making Tax Digital quarterly updates | YesSent straight to HMRC, or let Auto MTD send them for you | YesListed as “MTD for Income Tax ready” |
| Your tax return | On + Tax Return and CompleteSmall Business Complete is £16.99 a month with MTD and your tax return together | Not listed on the Simple plan pageCheck with Xero if you need it |
| VAT returns | Our VAT ServiceFor VAT registered members | Not includedSimple is for businesses that aren’t VAT registered |
| Email support | YesA reply within 48 hours, or 24 hours on Complete | See Xero’s website |
Xero’s prices and features are taken from Xero’s Simple plan page and pricing page on 27 October 2026. Prices and plans can change, so please check them before you choose.
When Pulse is the better fit
- You send more than a handful of invoices. A cleaner with twelve regular clients, or a tutor billing every family each term, will pass 10 invoices quickly. Pulse has no invoice limit on any package.
- You drive for work. Mileage is often one of a sole trader’s biggest claims, and at 55p a mile it adds up. Pulse logs it in the app, and it isn’t part of Xero Simple.
- You want your tax return done in the same place. With Small Business Complete, your quarterly updates and your tax return go from Pulse, for one monthly price.
- You’d rather not see the price jump. Our prices include VAT and there’s no introductory offer to run out, so what you pay in month one is what you pay in month seven.
When Xero may suit you better
- You send very few invoices and don’t drive for work. If 10 invoices is plenty and you have no mileage to claim, Xero Simple costs less each month once the offer ends.
- You want to reconcile against your bank. Xero lists reconciling transactions on its Simple plan.
- You expect to grow into payroll and bills. Xero’s larger plans add staff, bills and cash flow tools, so you can move up without changing software.
If you’re not sure which suits you, ask us. We’ll tell you honestly, even if the answer is Xero.
Access your accounts on your mobile
Designed for iPhone and Android phones, so you can add a payment, log a journey or scan a receipt between jobs, and check your reports and tax as you go.
See the mobile appSwitching to Pulse partway through the financial year
You don’t have to wait for April. When you join, you can add the earlier months of the tax year, so the whole year sits in Pulse ready for your updates and tax return.
If you’re already in Making Tax Digital, each quarterly update is a running total from 6 April. So once your records are in Pulse, your next update covers the year so far, whichever software sent the earlier ones.
Not sure where you stand? Our guide on when Making Tax Digital starts for you explains the dates.
Switching in three steps
Any time of year
-
Join PulsePick a small business package. No contract, cancel any time.
-
Add the earlier monthsIncome, expenses and mileage from 6 April, so the whole year is in one place.
-
Send your next updateIt covers the year so far, whichever software sent the earlier ones.
Bookkeeping and Making Tax Digital in one package
There are no invoice limits, and you can start partway through the year and add the months you've missed.
MalgraBooks is recognised by HMRC for Making Tax Digital. HMRC reference D5P1NR.
Small Business + MTD
- Bookkeeping, invoicing and mileage in Pulse
- 25 receipt scans a month
- Making Tax Digital quarterly updates
Questions about Pulse and Xero
Why do you show Xero’s price with VAT added?
Xero shows its prices without VAT. If you’re a sole trader who isn’t VAT registered, you can’t claim that VAT back, so £7 plus VAT costs you £8.40 a month. Our prices already include VAT, so we’ve put both on the same footing.
Is Pulse recognised by HMRC?
Yes. Pulse is recognised by HMRC for Making Tax Digital for Income Tax, and our HMRC reference is D5P1NR. More about our HMRC recognition
Am I tied into a contract?
No. Small business packages are paid monthly and you can cancel at any time.
Does Pulse work for my trade?
Pulse works for most sole traders, from cleaners and hairdressers to plumbers and online sellers. Find your trade to see what you can claim and how Pulse helps.
How up to date is this comparison?
We checked Xero’s website on 27 October 2026 and link to the pages we used. We review our comparisons regularly, but if you spot something that’s changed, let us know and we’ll put it right.
Got a question that isn't here? Send us a message and the team will get back to you.
This comparison was correct on 27 October 2026, based on the information on Xero’s website that day. Xero is a trade mark of Xero Limited. MalgraBooks isn’t connected with Xero.