On 12 September 2024, Xero began a process on reforming their current subscription format to offer an affordable and competitive service, and to supply their users with the tools to suit them. One of the most important aspects to note is that this affects existing and non-existing customers differently.
One year on, Xero has announced further price increases for some of its UK plans from 1 September 2025.
Here’s what’s changed.
What happened in 2024?
Last year, Xero retired its Starter, Standard and Premium plans and introduced four new ones:
Simple – £7/month
Ignite – £16/month
Grow – £33/month
Comprehensive – £47/month
Ultimate – £59/month
The new plans were designed to simplify subscription tiers by bundling popular add-ons (like Payroll, Projects and Expenses) into specific plans. This removed the need to purchase individual add-ons separately (though CIS remains optional at all levels).
While this created a cleaner pricing structure for new users, existing customers began a gradual migration to the new plans in February 2025. If your current subscription included features now only available on a higher-tier plan, you may have been moved to a more expensive option (though Xero offered discounted transition rates for affected users).
What’s changing now?
Xero has now confirmed a price increase for the Grow, Comprehensive and Ultimate plans, effective 1 September 2025.
| Plan | Current Price | New Price | Change |
|---|---|---|---|
| Simple | £7/mo | £7/mo | No change |
| Ignite | £16/mo | £16/mo | No change |
| Grow | £33/mo | £37/mo | +£4/mo |
| Comprehensive | £47/mo | £50/mo | +£3/mo |
| Ultimate | £59/mo | £65/mo | +£6/mo |
These price changes affect both new and existing UK customers on Grow, Comprehensive and Ultimate plans, and will show on invoices from 1 September onwards. The cost of optional add-ons, including CIS, remains unchanged.
If you currently benefit from a promo code or discount, this will continue to apply to the new price until it expires.
To check your current plan, go to the Subscription section of your Xero account.
What should you do now?
If you’re already on one of the affected plans, you should review your subscription to make sure it still meets your business needs. Consider:
Are you using all the features included in your plan?
Could you downgrade if you no longer need certain bundled tools?
Would another Xero plan (or an alternative cloud platform) offer better value?
And if you're an existing user yet to be migrated, expect further communications from Xero in the months ahead, particularly if your plan includes bundled add-ons like Payroll or Expenses.
The next step
If you're unsure how these changes might affect you, or want help reviewing your cloud accounting option, get in touch with one of our UHY cloud accounting advisers.
