What does the change in Xero subscription charges mean for me?

Paula • 30 August 2024

Xero is rolling out new subscription plans in the UK starting from September 12, 2024.


These changes will simplify the current offerings by replacing the existing Starter, Standard and Premium with three new plans: Ignite, Grow, and Comprehensive. Additionally, the Ultimate plan will remain in place but be enhanced to offer more features.


New Plans Overview


  • Ignite is aimed at small businesses just starting out and includes essential accounting tools.
  • Grow is designed for businesses looking to expand, offering more comprehensive tools, including payroll and expense management.
  • Comprehensive provides full accounting and payroll capabilities, suitable for businesses with employees.


Key points to note


  • These new plans will bundle features that were previously add-ons, such as Xero Payroll, Xero Expenses, and Analytics Plus, into the base subscription. This change aims to reduce complexity and provide more value for the same or slightly adjusted pricing.
  • The new plans are available from 12 September 2024 and you can move to a new plan when you like.  However, Xero recommend waiting until they email you with your new proposed plan before migrating.  This will happen late September 2024.
  • Existing users will be gradually migrated to these new plans, with those benefiting from more features at the same or lower cost being transitioned first in February 2025.
  • For users who may face a price increase, the migration will be delayed until September 2025 to allow for a smoother transition.


Current plans price increases


In addition to the new plans and their subscription fees the current plans as they stand are going to subject to a price increase from the 12th September 2024.


  • Starter will increase to £16 per month, an increase of £1 per month.
  • Standard will increase to £33 per month, an increase of £3 per month.
  • Premium will increase to £47 per month, an increase of £5 per month.
  • Ultimate will increase to £59 per month, an increase of £4 per month.


Conclusion


The change in pricing for existing plans combined with the upgraded new subscription plans has caused some confusion for Xero users.  It is important to be aware of what change is going to impact you and when. Regarding the new plans Xero customers also need to know exactly what their new subscription is going to give them and what additional add ons may need to be purchased.


MPower Accounting is a certified Xero advisor and we are on hand to assist you with the successful migration of your subscription to ensure you have the right Xero product at the best price point for your business.


Please get in touch.

Finger pressing the Shift key on a black laptop keyboard

I can file my own MTD Return, can’t I – isn’t it just clicking a button?

by Paula Veysey-Smith • 23 July 2026
Why Filing Your Own MTD Returns Isn't a Good Idea

R is for Reward

by Paula Veysey-Smith • 8 July 2026
The finish line isn't just a destination. It's proof of everything you put in to get there. “Nothing feels so good as when you've succeeded at something you set out to do.” We made it. Seven letters, seven posts, and one very important journey. If you've been following this series from the beginning, you'll know that back in January we started with a goal — a triathlon in July. And as I write this, sitting in the garden with an iced coffee and a medal around my neck, I can tell you: it happened.  R is for Reward. And it might just be my favourite letter of the lot.
HMRC mileage rate increase 2026 -- car dashboard representing business travel costs

HMRC Increases Mileage Rate to 55p Per Mile

by Paula Veysey-Smith • 5 June 2026
HMRC has increased the Approved Mileage Allowance Payment rate from 45p to 55p per mile for the first time in 15 years. Find out what the new rates mean for employees, directors and self-employed individuals from 6 April 2026.

E is for Evaluate

by Paula Veysey-Smith • 18 April 2026
Setting a goal is just the beginning. What keeps it alive — and keeps you moving towards it — is what you do in between. “Evaluating what you're doing is so important. What worked, what didn't, what can I do better?” We're six letters into the SMARTER framework now. We've covered Specific, Measurable, Achievable, Relevant and Time-bound. Today we reach E for Evaluate — and I'll be honest with you, I think this might be the most important letter of the lot.
More posts