Kletta vs Xero for Making Tax Digital
By the selector's own rules, Kletta and Xero both work for sole traders and people with rental and self-employment income, so the choice comes down to the three points where they differ. Xero offers support for more than one property and support for jointly owned property, which Kletta does not. Their cheapest plans are listed as £19 a month, VAT not stated (Solo) for Kletta and £7 plus VAT a month (Simple) for Xero.
Kletta suits sole traders who want a phone-based MTD workflow, sole traders who also have rental income and want it tracked in the same app and people who want mileage and receipt tracking built into a mobile app. Xero suits landlords with multiple properties, sole traders who also need payroll and anyone already using an accountant on Xero.
The facts on this page come from each provider’s own pages and from HMRC’s software list, and how we compare products explains how we check them.
If you are thinking of moving from one to the other, the guide to changing your MTD software explains what GOV.UK says about when you can move and what happens to your records.
Where they differ
These are the points where our checks of the two products came out differently. A “No” means we did not find that feature on the provider’s own pages when we last checked them. Where we had nothing to go on for one of the two, we leave the point out here rather than guess.
| Point | Kletta | Xero |
|---|---|---|
| Cheapest plan | £19 a month, VAT not stated (Solo) | £7 plus VAT a month (Simple) |
| More than one property | No | Yes |
| Jointly owned property | No | Yes |
On the other points we compare (free plan, holiday lets and former FHL, self-employment income, bank feeds, receipt capture, phone apps and accountant access), they give the same answer, or at least one provider does not say. The full list is under each product’s own page.
Both send MTD for VAT returns, from different plans: Kletta from the Solo plan and Xero from the Ignite plan.
What HMRC’s software list says about both
HMRC’s list marks each feature as available now or intended for later. This is what HMRC’s list says, not something we have tested ourselves. Where HMRC lists a product under more than one name, we show the strongest answer and the listing it comes from.
| Feature | Kletta | Xero |
|---|---|---|
| Your tax return and other income | ||
| Sending your tax return | Available | Available |
| Foreign property | Available | Available |
| Construction Industry Scheme (CIS) | Availablesince 27 February 2026 | Availablesince 16 October 2026 |
| Employment (PAYE) | Available | Intended |
| UK dividends | Availablesince 27 February 2026 | Availablesince 16 October 2026 |
| UK interest | Availablesince 27 February 2026 | Availablesince 17 July 2026 |
| Capital gains | Availablesince 27 February 2026 | Intended |
| How it works | ||
| Bridging software that connects to your records | Not stated | Not stated |
| Calendar update periods (1 April to 31 March) | Not stated | Available |
| A free version | Not stated | Not stated |
| Welsh language | Not stated | Not stated |
| Accessibility | ||
| Blindness or impaired vision | Not stated | Not stated |
| Deafness or impaired hearing | Not stated | Not stated |
| Motor or physical difficulties | Not stated | Not stated |
| Cognitive impairments | Not stated | Not stated |
This is HMRC’s list as it stood on 30 October 2026, at HMRC’s commit 201b34e. A date beside a feature is when HMRC’s list changed it from intended to available. HMRC’s software finder shows the current answers. How we read HMRC’s list
Does HMRC’s software list show Kletta and Xero as available for sending your tax return?
For sending your tax return, HMRC’s software list as it stood on 30 October 2026 marks it “Available” for Kletta and marks it “Available” for Xero.
Does HMRC’s software list show a free version of Kletta or Xero?
For a free version, HMRC’s software list as it stood on 30 October 2026 says nothing either way for Kletta and says nothing either way for Xero.
How many features does HMRC’s software list mark as available for Kletta and Xero?
HMRC’s software list as it stood on 30 October 2026 covers 15 features, and it marks 7 “Available” for Kletta and 6 “Available” for Xero. For Kletta, it marks 0 “Intended” and gives no answer on 8. For Xero, it marks 2 “Intended” and gives no answer on 7.
The cheapest plan for your situation
A product’s cheapest plan is not always one you can use, because some plans are only for landlords or only for sole traders. These are the lowest prices the selector would show each reader, as each provider states them. Where a price grows with the number of properties, it is shown as a starting price. The figure over 12 months is the same plan at its regular price, worked out the way the software cost calculator does it.
Kletta
- For sole traders
- £19 a month, VAT not stated
- For people with rental and self-employment income
- £29 a month, VAT not stated
- Cheapest plan over 12 months for sole traders
- £228, VAT not statedRegular price, before any offer
- Cheapest plan over 12 months for people with rental and self-employment income
- £348, VAT not stated
We checked Kletta’s prices on 25 October 2026.
Xero
- For sole traders
- £7 plus VAT a month
- For people with rental and self-employment income
- £7 plus VAT a month
- Cheapest plan over 12 months
- £84 plus VAT
We checked Xero’s prices on 25 October 2026.
Xero also works for landlords.
Notes from our checks
Kletta
Kletta's main pricing page is for accountants, from about £3 a month for each sole-trader client they manage, which is not what an individual pays. The Solo, Duo and Care plans and their prices are on Kletta's home page and on a separate pricing page for sole traders, which we now link to. The home page has two sets of plan cards, and they disagree on the new-customer discount for Duo and Care and on which plan includes bank connection: one set lists it from Solo and the other only on Care. We show the full prices, which both sets agree on, and show bank connection for Kletta as a whole. Property income and expenses are mentioned for Duo and Care but not for Solo, so we treat Solo as self-employment only. We did not find tracking for several separate properties, a way to split jointly owned property, or anything about furnished holiday lets. Kletta's apps are on the App Store and Google Play. If your accountant's practice uses Kletta for Accountants, the records you keep in the app sync to their dashboard, where they can review them and prepare your submissions, so we show accountant access. We checked this on 25 October 2026.
Xero
Regular prices include the September 2026 increase. Xero advertises one month free or 90% off for the first six months for eligible new customers. Simple is for non-VAT-registered businesses. Payroll, Expenses and other add-ons depend on the plan.
Neither product is ranked above the other here: the page sets out what each provider says so you can weigh it against your own situation. How we compare products