Update to Xero plans and pricing

At the end of May 2024, Xero announced significant changes to its platform to take effect from 12 September 2024. This included a shakeup of its plan offerings, how add-ons interact with these and product price increases. Existing users of Xero have begun being notified of the changes via email and will also notice in-product notifications.

Stuart Pedlar, Manager at Westcotts delivering the firm’s cloud accounting products, reviews the changes.

A new plan line-up 

The major announcement included changes to Xero’s plan lineup.

  • The phasing out of the existing Starter, Standard, and Premium plans
  • The introduction of three new plans – Ignite, Grow and Comprehensive

The phased-out products are largely being replaced by the newer similar like-for-like counterpart plans. However, there are subtle changes to their inclusive and add-on features.


+ The number of bills you can enter per month increases to 10 (was 5)
+ Optional ‘Pay Bills’ functionality now available (at additional cost)
Loss of bulk reconciliation tools like ‘cash coding’
Loss of ability to use add-ons for expenses, payroll, projects and analytics plus (CIS still available)



+ ‘Pay bills’ functionality for up to 5 payments per month included*
+ 1 user inclusive Xero expenses add-on*
+ 1 employee inclusive Xero payroll add-on*
Maximum payroll add-on usage limited to maximum 1 employee
Loss of ability to use additional add-ons for projects and analytics plus (CIS still available)



+ ‘Pay bills’ functionality for up to 10 payments per month included*
+ Analytics plus add-on included
+ 5 user inclusive Xero expenses add-on*
+ 5 employee inclusive Xero payroll add-on*
Maximum payroll add-on usage limited to maximum 5 employees
Loss of ability to use additional add-on for projects (CIS still available)

The Ultimate plan also gets an upgrade with;

+ ‘Pay bills’ functionality for up to 15 payments per month included*
+ 10 user inclusive Xero expenses add-on* (was 5)
+ 10 employee inclusive Xero payroll add-on* (was 5)
+ 10 user inclusive Xero projects add-on* (was 5)

*additional usage/users also available above inclusive limits, at additional cost


Impact on current subscribers

The most impacted businesses are those utilising add-ons within Xero. In these cases, businesses may find that functionality within their existing plan will no longer exist. This may require an upgrade to a higher plan to retain it.

Xero has confirmed that it will seek to migrate existing subscribers who have not already moved to a new plan. This will happen between September 2024 and March 2025 with at least 60 days’ notice before any transition.

We expect further details to be announced shortly regarding how this transition process will be conducted. We will see if any flexibility will be provided to businesses that are severely impacted by the changes.

Increases to plan pricing

In addition to the plan changes, price increases were announced product-wide, taking effect from 12 September 2024 (ex. VAT, per month).

Plan Current price Revised price Change
Starter/Ignite £15 £16 +£1
Standard/Grow £30 £33 +£3
Premium/Comprehensive £42 £47 +£5
Ultimate £55 £59 +£4


Westcotts continues to be able to provide licenses at a discounted price. Please contact digital@westcotts.uk if you would like to benefit from this.

Preparing your business

If you use Xero, it’s important to prepare your business for these changes.

Review current plans: Check your current Xero subscription and add-ons to understand how the changes might impact you. Westcotts can provide a free check of what plan migration best retains your business functionality needs in the cheapest way.

Plan for the future: Consider if your Xero plan is still appropriate to you and whether upgrading to a new plan may benefit your business needs. We can advise on all the additional add-ons for Xero and how it can help your business grow.

Stay informed: Keep an eye out for communications from Xero regarding any specific transition timeline and options you are provided with. Westcotts will continue to provide updates and advice as they arise.

For more detailed information about the new plans, visit the Xero New Plans page.

If you have any questions or need personalised advice, reach out to our Digital Services team at digital@westcotts.uk. Alternatively, reach out to your local Westcotts contact. Our team is here to help you navigate these changes smoothly.

Written by Stuart Pedlar

June 20, 2024

Category: Blog

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