Choosing software, 29 October 2026
Xero vs QuickBooks vs Sage for builders
For most small UK builders, Xero and QuickBooks are the closer fit, Sage the budget option. Xero has the widest range of trade apps and a £5 a month CIS add-on; QuickBooks says it calculates and files CIS returns and supports the domestic reverse charge; Sage Accounting starts at £20 a month. All three handle VAT and Making Tax Digital. Choose on CIS, job costing and the apps your accountant uses.
What does a builder need from accounts software?
Five things matter more than the rest for a construction firm: CIS, the VAT domestic reverse charge, cost per job, supplier bill capture and Making Tax Digital. Check each before you choose.
Source: GOV.UK, Find out if and when you need to use Making Tax Digital for Income Tax
Qualifying income is your self-employment and property income before expenses, so a sole trader builder turning over £35,000 is in from April 2027 even if profit is much lower. MTD for Income Tax covers sole traders and landlords; HMRC says partnerships will follow on a date it hasn't yet set.
How do Xero, QuickBooks and Sage compare?
This is what each vendor's UK pages show as of October 2026. QuickBooks' pricing page didn't display live prices when we checked, so check their pricing page.
| Xero | QuickBooks | Sage Accounting | |
|---|---|---|---|
| Monthly price before VAT | £18 to £70 | Check their pricing page | From £20 |
| New customer offer | 90% off for 6 months | Discount for new customers | 90% off for 6 months |
| Contract | Monthly, one month's notice | No contract, cancel any time | Check their pricing page |
| CIS | Subcontractor CIS included; contractor returns £5 a month add-on | Calculates and files CIS returns | Check with Sage |
| Reverse charge VAT | Supported | Supported | Check with Sage |
| Job costing | Projects on Ultimate (£70) only | Plus and Advanced | Check with Sage |
| Payroll | 1 to 10 people included on Grow and up | Paid add-on | Check with Sage |
| Trade app links | Widest: Tradify, ServiceM8, Fergus, Dext, Simpro | Tradify, GES and others | Tradify, GES and others |
Xero suits builders who want to plug in a job app and receipt tool. The Xero App Store's construction section lists Tradify, ServiceM8, Fergus, Simpro and Dext, and Simpro's listing includes CIS payments. Its Ignite plan caps you at 20 invoices and 10 bills a month, which a busy builder will pass.
QuickBooks suits builders who want CIS and job profit in the accounts package itself. Its construction page says it can "calculate subcontractor deductions and file CIS taxes directly with HMRC" and that VAT filing supports the domestic reverse charge.
Sage Accounting is the cheapest of the three at the published starting price. Check that the plan you pick covers CIS before you buy.
What will it cost in the first year?
More than the headline price, because the introductory offer ends after six months and add-ons aren't discounted.
First year on Xero for a builder paying three subbies
Grow plan, new customer offer, plus the CIS add-on. Prices before VAT, October 2026.
| Months 1 to 6 at 90% off6 × £3.90 | £23.40 |
| Months 7 to 12 at full price6 × £39 | £234.00 |
| CIS returns add-on, not discounted12 × £5 | £60.00 |
| First year | £317.40 |
| Second year, no discount(12 × £39) + (12 × £5) | £528.00 |
Will the accounts package tell you if a job made money?
Only if supplier costs reach the right job. That's the weak point for most small firms, whichever package they use. On our calls about 12 of 28 firms said Xero wasn't showing their real position, mostly because receipts and supplier bills weren't going in, or were going in without a job reference.
Bills that go in late or without a job code put errors all through the P&L. A metal fabrication firm with eight staff, sending supplier invoices through Dext into Xero, asked us whether the reverse charge would be applied automatically. Neither problem is fixed by switching packages. They're fixed by how bills get in and get coded. Our guide to matching supplier invoices to jobs in Xero covers the method.
Which should you pick?
Pick Xero if you use, or plan to use, a job app or receipt tool and want the most choice. Pick QuickBooks if you want CIS and job profitability inside the accounts package. Pick Sage if price matters most and your accountant uses it. If the trouble is getting data in, rather than the package, compare Nexley and job management tools and check integrations before you buy.
Where Nexley fits
Nexley is the AI back office for UK trade firms: five AI assistants run your tenders, quotes, buying, scheduling and invoicing. It connects to the tools you already work in, you run it all from WhatsApp, and you approve everything. £799 a month.
Nexley connects to Xero, Sage and QuickBooks. Forward a supplier invoice or photo a receipt on WhatsApp and Nexley posts the bill to the right job, flags price rises and keeps cost per job current, so the accounts show the real position. You approve each entry. Your accountant still does the year end.
Common questions
How is Nexley different from a job management app?
A job app is a better filing system: it holds your jobs, and you still do the quoting, invoicing and chasing. Nexley does that work. Five AI assistants draft your quotes, invoices, supplier orders, replies and tenders overnight from your own prices and your Xero, and you approve each one in WhatsApp. It's the office help you'd otherwise hire, for £799 a month against about £2,358 a month for a full-time admin.
Is Xero or QuickBooks better for CIS?
QuickBooks says CIS deductions and filing are built in. Xero offers CIS returns as a £5 a month add-on as of October 2026. Both are used by UK builders; check the workflow with your accountant.
Does Xero do job costing?
Xero's Projects feature is included on the Ultimate plan at £70 a month. On lower plans, builders often use tracking categories or a connected job app to see cost per job.
Do I need accounts software for Making Tax Digital?
If you're a sole trader or landlord above the threshold, yes: you need software that works with MTD for Income Tax. The threshold is £30,000 of qualifying income from 6 April 2027 and £20,000 from 6 April 2028. Ask your accountant whether you're in.
Can I switch accounts software mid-year?
Yes, but it's simpler at a VAT quarter end or year end. Your accountant can move opening balances. Export your old data first, because Xero's terms say data is archived and unavailable once you cancel.
Sources
- Xero: UK pricing plans
- Xero: terms of use
- Xero UK: Domestic reverse charge VAT
- QuickBooks UK: pricing
- QuickBooks UK: construction
- Sage UK
- GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax
- GOV.UK: Work out your qualifying income for Making Tax Digital for Income Tax
- Xero App Store: construction and trades apps
Every rule, rate and date above was checked against these sources on the date shown at the top.
Topic: Choosing software
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