The 7 best self-employed accounting software platforms Whether you're a freelancer, a contractor, or a consultant, the right accounting software can make your life so much easier – here’s our pick of the very best options. Written by Eddie Harris Reviewed by Dan Heelan Updated on 24 December 2025 Our Research To recommend the best accounting software, our writers and researchers focused on the factors that matter most to small business owners – ease of use, features, design, scalability, and suitability for the UK taxation system. Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality. 1 of 3 Xero: Limited Time — 90% Off for 4 Months See Pricing 2 of 3 Sage: Try out an AI-powered assistant FREE See Pricing 3 of 3 Compare software deals to find the best option Compare Costs In January 2025, we completed in-depth analysis into seven top accounting software platforms, testing them across 1,512 areas of investigation. We determined that Zoho Books is the best accounting software for the self-employed thanks to its easy-to-use interface, simple invoicing system, and option for a free plan.That’s not to say another software platform won’t have a specific tool or feature that’s more suited to your needs. The end of the tax year will be here before you know it, and the best way for the self-employed to be prepared is with top small business accounting software.Read on for our full reviews of the best accounting software for the self-employed, to find out which is best for you. 💡Key takeaways Zoho Books is the best self-employed accounting software thanks to its simple-to-use invoicing system, helpful tools and free plan. As of 2025, Clear Books now provides a free Making Tax Digital (MTD) software for the self-employed.Xero is a strong option for self-employed workers looking to expand their businesses, thanks to the range of well-balanced plans.When choosing software, consider how many clients you have, as most plans will come with usage limits.A comprehensive mobile app will be a big help to self-employed users, who often find themselves managing their business on the move. Compare self-employed accounting software 0 out of 0 backward forward Rating Price from Free trial FEATURED PROVIDER BEST OVERALL Xero Zoho Books FreeAgent QuickBooks Sage FreshBooks Clear Books 4.3 4.8 4.5 4.5 4.2 4.2 4.0 £7/month (+ VAT)Get 90% off for 6 months Free £10/month (+ VAT)£5/month for 6 months (+ VAT) £10/month (+ VAT)Get 90% off QuickBooks for a year £18/month (+ VAT)90% off the first three months £15/month50% off for 3 months Free Try Xero Compare Deals Compare Deals Compare Deals Try Sage Compare Deals Compare Deals Making Tax Digital: what do I need to know before April 2026? These are the key points you need to know:Since April 2022, all VAT-registered businesses — including those that are voluntarily registered — have been required to store their VAT accounting records digitally, using HMRC-recognised accounting software.From April 2026, HMRC plans to expand this regulation to all self-employed people with gross income of over £50,000 per year (HMRC is still deciding how the rules will apply to people who make less than that).MTD for Income Tax will require you to submit quarterly income and expenses reports to HMRC.You will need to submit ‘end of period statements’ at the end of the financial year to replace self-assessment tax returns. 1. Zoho BooksBest overall self-employed accounting software Zoho Books Compare Deals Starting price from: Free Free trial: 14 days Easy-to-use platform that's simple to navigate Excellent free plan for solopreneurs and micro-businesses Mobile app for real-time financial management Summary Zoho initially made its name from CRM systems, but has been providing accounting software since 2011. Zoho Books stands out for its clean and modern interface, and seamlessly aligns with the broader Zoho products. While the platform is geared towards small businesses, we would also recommend it to sole traders, as the tools can be used by inexperienced users. Show moreless Suitable if: You’re looking for a free plan You want an easy-to-use platform You're planning to use the entire Zoho ecosystem Not suitable if: You want 24/7 help and support You want to be able to integrate third-party software outside the Zoho ecosystem Is Zoho Books a good choice for the self-employed?Zoho Books was the clear front runner for the most user-friendly platform I tested and, for the self-employed, ease-of use is going to be critical. You’ll need to work quickly and efficiently and Zoho Books provides excellent usability. Its self-help page is also very easy to use with handy how-to guides if you get stuck.We really love the design of the Zoho Books interface, which makes it a pleasure to use. Source: Startups.co.ukIn particular, I found the invoicing system to be exceptionally simple. Zoho Books keeps things clean and simple, which is well suited to non-experienced users, so it should be simple to pick up quickly and get to grips with.Our group of in-house testers rated it the highest for ease-of-use, and it came out far and away on top for how likely they would be to recommend it. What our users had to say… “The navigation was straightforward, especially around invoices and quotes – I didn’t really need to leave that section once I was in it.” How much does Zoho Books cost?Zoho Books stands alongside Clear Books as the only two software providers on the roundup that offer a completely free plan (we also named it our top choice for free accounting software). But if you want more organisational ability, including custom reports, the Standard plan is only £12 per month. 0 out of 0 backward forward Plan Cost Free Standard Professional Premium Free Paid monthly: £12/month (+ VAT)Paid yearly: £10/month (+ VAT) Paid monthly: £24/month (+ VAT)Paid yearly: £20/month (+ VAT) Paid monthly: £30/month (+VAT)Paid yearly: £25/month (+ VAT) What are the standout features?Customer portal, so your clients can view and manage their transactions.Excellent cross app integration allowing you to easily connect your accounting software to the rest of the Zoho suite, such as Mail and CRM.What are the disadvantages of Zoho Books?The hours for live chat and phone help are limited to 9am to 6pm, which isn’t ideal if you don’t work within traditional business hours. Xero, by comparison, has 24/7 online support.Zoho Books has limited connectivity to third-party applications, especially compared with some competitors, like Xero and QuickBooks. Though there are some third-party applications you can connect, like Dext, the market leader in receipt capture technology.Zoho Books can be particularly restrictive with transaction caps: for example, 1,000 sales invoices and 1,000 purchases.Without the paid add-on, the receipt capture technology can be a little basic. Expert opinion: Dan Heelan on Zoho Books I think the quirk of Zoho is that it’s potentially awesome if you are in the eco system, if not it’s just ‘solid’. Care also needs to be taken when looking at monthly subscriptions. The free subscription makes for a great headline (and is a pretty good plan for a time), but would suit only the small business where activity levels and needs are low. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 2. FreeAgentBest if you’re already banking with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle FreeAgent Compare Deals Starting price from: £10/month Free trial: 30 days The only software we tested that gives you built-in tax forecasting and planning tools at no extra cost Helpful cash flow alerts about potential surpluses and shortfalls Free plan available with certain qualifying banks Summary Originally launched in 2007, FreeAgent is based in Edinburgh and now helps over 200,000 small businesses. It was acquired by NatWest Group in 2018. Our recommendation is that FreeAgent is best suited to freelancers, sole traders and novice accountants. It’s a good middle ground for those who need a feature-filled system that’s not overly complex. Show moreless Suitable if: You want software that has intuitive navigation and clear layouts You want comprehensive and reliable tax tools You want cash flow alerts Not suitable if: You want a smooth onboarding experience to hold your hand You want software that will remember account codes for faster entry You want the most budget friendly option (unless you qualify for a free plan) Is FreeAgent a good choice for the self-employed?Put simply, FreeAgent’s an excellent choice if you’re going to sign up for one of the qualifying business bank accounts, as you’ll get a pretty comprehensive software platform for free. So if you sign up for a NatWest or Mettle business bank account, you get access to FreeAgent free of charge.FreeAgent excels at simplifying complicated financial tasks. The layout is nice and clear and, while it might not be quite as modern as Zoho Books, it does exactly what you need it to. The well-labelled headings like “Bills” and “My Money” make navigating easy for novices, and the dashboard reminders are particularly useful.FreeAgent has a clear user interface, which makes navigating around the platform easy. Source: Startups.co.ukOur users found tasks like quickly adding clients, managing expenses and setting up automatic reminders were all handled with ease. It strikes a delicate balance between simplicity and functionality. What our users had to say: “It definitely felt like it understood its audience – maybe novice accountants, freelancers or sole traders – so it seems to fulfil what it’s aiming for pretty well.” How much does FreeAgent cost?Presuming that you’re not getting it for free or using the cheapest plan, aimed at landlords, FreeAgent starts at £19 per month for the Sole Trader plan, so it’s a pretty costly option for the self-employed.Competitors like Xero and QuickBooks have plans of the same cost, or cheaper, but more feature-packed. But, if you bank with NatWest, Royal Bank of Scotland, Ulster Bank, or Mettle, you can qualify for a free plan. So, if this applies to you, it’s a no-brainer. 0 out of 0 backward forward Plan Cost Landlord Sole Trader Partnership/LLP Limited Company Paid monthly: £10/month (+ VAT), currently 50% off for your first six monthsPaid yearly: £100/year (+ VAT), currently 50% off for your first year Paid monthly: £19/month (+ VAT), currently 50% off for your first six monthsPaid yearly: £190/year (+ VAT), currently 50% off for your first year Paid monthly: £27/month (+ VAT), currently 50% off for your first six monthsPaid yearly: £270/year (+ VAT), currently 50% off for your first year Paid monthly: £33/month (+ VAT), currently 50% off for your first six monthsPaid yearly: £330/year (+ VAT), currently 50% off for your first year What are the standout features?User-friendly templates for both invoices and estimates.The traffic-light system for bank transactions where they are categorised as “Explained”, “Unexplained”, “Manually added” or “Marked for approval”.The smart receipt capture that clearly guides you through the next steps.Tools for streamlining your processes such as tax reminders and end-of-year reports.Timeline feature for invoicing, giving you a clear look at what stage your invoice is at.What are the disadvantages of FreeAgent?In general, we felt an improved onboarding experience would massively benefit FreeAgent. While 24/7 help is available, the guide link is tricky to find, and it takes you to an external knowledge base which feels a little disjointed.There are some small issues we found a little unintuitive, for example it’s not ideal that the default time unit was set to hours.We previously complained that FreeAgent doesn’t have the ability to remember frequently used account codes. FreeAgent has since been updated to provide this feature, for the most part. It won’t provide autofill when you are manually entering a bill, but it will for receipt capture or clearing down your bank account. Expert opinion: Dan Heelan on FreeAgent Overall, FreeAgent offers strong functionality and great guidance for new users, but its higher cost and learning curve may deter the budget-conscious or users focusing on higher levels of transactions. But if you bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle, it’s amazing value for money as it’s a fully fledged product, for free! Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 3. QuickBooksBest for mobile users QuickBooks Get Quotes Starting price from: £10 (self-assessment only) Free trial: 30 days Great bank reconciliation feature Predicts your transaction categorisation Custom reports and templates tailored to your business’ needs Summary Part of the American multinational company Intuit Inc., QuickBooks is accounting software specifically designed for SMEs. It currently has 6.5 million subscribers worldwide. We think its intuitive layout combined with detailed features makes it suitable for more advanced business operations. It’s more suited to those working in accountancy rather than small business owners themselves, due to the complexity of the software and steep learning curve. Show moreless Suitable if: You’re looking for a comprehensive mobile app for using software on the move You want to connect to other apps You already have experience using accounting software Not suitable if: You don’t want to have to invest time and effort to master the software You need time-tracking functionality You don’t have experience setting up workflows Is QuickBooks a good choice for the self-employed?QuickBooks is going to be the best choice for self-employed business owners who are frequently on the move, as the mobile app is the best and most feature-packed of the roundup. For example, its receipt capture tool can scan and read your receipts from the mobile app, and can automatically track mileage.QuickBooks is one of the market leaders in the UK, so it’s particularly useful for connecting to other apps. As it’s such a gigantic brand name in the accounting software space, software developers will build for Xero and QuickBooks first.With QuickBooks, you can modify your reports and tailor them to your needs. Source: Startups.co.ukWhile there was a steep learning curve (especially compared with FreshBooks), once we got going, what stood out to us was how well-organised the layout was. All of the essential features were logically categorised, which made navigation easy. What our users had to say… “The learning curve is quite steep. Compared with FreshBooks, where you could go in and get started straight away, it takes more time to understand where to do things.” How much does QuickBooks cost?QuickBooks’ Sole Trader plan starts at a very competitive £10 per month, and there’s currently a promotion where you 90% off your first six months. An attractive option, considering there’s no setup fee or hidden costs. You can find out more details in our full QuickBooks pricing guide.You can also get a 10% saving if you opt to pay annually instead of monthly. However, currently you can’t choose an annual subscription from sign-up. According to QuickBooks support page, you need to switch to an annual plan once you’ve already set up your account. 0 out of 0 backward forward Plan Cost Sole Trader Simple Start Essentials Plus Advanced Paid monthly: £10/month (+ VAT)You can currently get 90% off for the first six months Paid monthly: £16/month (+ VAT)You can currently get 90% off for the first six months Paid monthly: £38/month (+ VAT)You can currently get 90% off for the first six months Paid monthly: £56/month (+ VAT)You can currently get 90% off for the first six months Paid monthly: £123/month (+ VAT)You can currently get 90% off for the first six months What are the standout features?Simple tax return, so you can easily get all the figures you need when it comes to submitting your self-assessment.Value for money, with the Essentials plan being one of the best options for sole traders in terms of features versus cost, including multi-currency.Standout bank ‘reconciliation’ function that gives you confidence that all the numbers add up (especially as automatic links to your bank can fail).Extensive customisation so you can tailor the menus to your liking, and you also get access to extensive, customisable reports.AI-powered help, including to help separate personal and business expenses.What are the disadvantages of QuickBooks?There’s a reasonable time investment to master all of QuickBooks’ quirks and complexities. In the long run, you’ll get a lot out of it, but it shouldn’t be the first choice for those who need a quick and simple platform, like FreshBooks (you can find out more in our breakdown of QuickBooks vs FreshBooks).One important area to note about QuickBooks is the automated suggestions for account codes and categorisation. New users might be tempted to assume they’re accurate, but our external accounting expert found them to be frequently incorrect. QuickBooks is due an upcoming AI-overhaul, so this may be fixed.Read next: our full review of QuickBooks. Expert opinion: Dan Heelan on QuickBooks Whilst QuickBooks takes a little time to get used it, with a great mobile app and an impressive list of features vs investment on any plan, it’s one of the best all round choices you could make for your accounting needs. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 4. XeroBest for growing businesses Xero Try Xero Starting price from: £16/month Free trial: 30 days Easiest interface for quickly dealing with your bank transactions Well-thought out plans and growth path Connect with over 1,000 possible integrations Summary Based in New Zealand, Xero was founded in 2006 and now boasts 4.2 million subscribers. Xero is tailored mostly towards experienced professionals and accountants, predominantly positioning itself towards high-turnover businesses with long-term client bases. We wouldn’t recommend it to new users. Show moreless Suitable if: You have previous accounting experience You have a lot of clients You want to connect your software to a large ecosystem of integrations Not suitable if: You’re looking for an easy-to-use system You want a modern-looking interface You want a straightforward, simple workflow Is Xero a good choice for the self-employed?Xero is best suited to self-employed business owners who have plans for future growth, as the upgrade path for Xero’s software plans works very smoothly. All the plans have a solid set of features, but Xero boasts the largest amount of external plug-ins, so as you grow, chances are if you need extra software you’ll be able to connect it.We’d say Xero provides the most support for scalability. You can start out small on its new Simple plan, but its range of more advanced plans stagger extra features cost-effectively. It works for sole traders managing small numbers but can continue to support you if your business suddenly skyrockets.Xero is a more complex software than a simple solution like Zoho Books, but arguably less so than QuickBooks. Source: Startups.co.ukXero also provides a designated, reliable client portal, and I also found the bills tool very easy to use, as it offers:Straightforward client creationSimple description entryFlexibility over currency settings What our users had to say… “The expenses were really good, better than FreshBooks and QuickBooks. It was really clear where to upload the picture of the receipt. I like that you can put in your mileage and the cost of 45p. It was easy to associate it to the client too.” How much does Xero cost?While this isn’t the most beginner-friendly option, Xero’s probably worth the money if you need something more heavyweight. But if you’re looking to simply calculate a tax return and file a self-assessment there are lower-cost options out there (like Zoho Books’ free plan).In April 2025, Xero also introduced Simple, it’s new, budget-friendly plan for sole traders that is MTD for Income Tax ready. 0 out of 0 backward forward Plan Cost Simple Ignite Grow Comprehensive Ultimate Paid monthly: £7/month (+ VAT)Buy by 30 January 2026 to get 90% off for the first six months Paid monthly: £16/month (+ VAT)Buy by 30 January 2026 to get 90% off for the first six months Paid monthly: £37/month (+ VAT)Buy by 30 January 2026 to get 90% off for the first six months Paid monthly: £50/month (+ VAT)Buy by 30 January 2026 to get 90% off for the first six months Paid monthly: £65/month (+ VAT)Buy by 30 January 2026 to get 90% off for the first six months What are the standout features?The bank ‘feed’, which leads our expert accountant to consider Xero’s bank transactions to be the best book-keeping experience of any software on the marketConnectivity, as it is simple to add third-party apps, and with new data analytics tool powered by Syft (a company acquired by Xero), you can see how well your business is performing in greater detailReporting, where Xero provides a comprehensive list of options, which is ideal for growing businesses.Receipt capture, because Xero owns Hubdoc, which means you’ll be supplied with a fully separate app to capture receipts, read the data and suggests categories.What are the disadvantages of Xero?Xero comes with a learning curve, and many of our testers found the system to be old-fashioned and difficult to use (however, the platform has been recently updated and it looks a lot more modern).One potential downside for business owners is that multicurrency functionality is only included in the more costly Comprehensive plan. This could be a frustrating cost jump if you don’t need the other extra features in the plan, and both QuickBooks and FreeAgent provide this function much cheaper. Expert opinion: Dan Heelan on Xero Xero is (now) easy on the eye and simple to navigate, especially with its new upgraded tool bar functionality. It also has arguably the best, easiest to use, ‘bank transaction categorisation’ features of all the offerings. Xero also connects to a large amount of other applications, which means for any growing business Xero is a superb choice. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 5. SageBest for those who prefer a more traditional book-keeping experience Sage Try Sage Starting price from: £18/month Free trial: First month free A quick, no-nonsense experience Customisable themes and logos to establish a strong brand identity Reassurance of a long-standing accounting brand Summary Based in Newcastle upon Tyne, as of 2017 Sage is the UK’s second largest technology company, the largest supplier to small businesses and has 6.1 million worldwide customers. Its accounting software is best suited for service-based businesses, like builders, contractors and handymen. While it’s good for managing quotes and invoicing, it may lack the functionality needed by more established businesses. Show moreless Suitable if: You want assistance from AI You want a quick and dependable experience You want to establish your brand using tailored logos and themes Not suitable if: You want detailed time tracking You plan on using the mobile app extensively (QuickBooks is a better option for this) You often upload a large volume of expenses Is Sage a good choice for the self-employed?Sage is a strong option for those who want a less complex, more traditional accounting software, as it has a more basic approach to the look and feel of the platform. It’s no frills, but that means its fast and easy to manage.Sage is a safe pair of hands, and it’s helpful for easily getting users’ data into the books, manipulating it and reporting on it with minimal fuss. Sage has something of an old-school feel to it, but the lean approach means it operates quickly, without much lag.Sage provides branding tools, like themes and logos, for your external documents. Source: Startups.co.ukI’d suggest that Sage is suitable for a range of businesses, thanks to the seamless invoice management. It’s particularly good for freelancers working in service-based roles (like contractors or handymen) thanks to:Customisable invoicingCustomisable profit and loss statementsStrong invoice workflows and quoting Sage Individual: a free option for non-VAT-registered sole traders Outside of its standard Sage Accounting software range of plans, Sage also provides Sage Individual. This software is aimed at non-VAT-registered sole traders, and self-employed users who are filling out the SA103 supplementary page to record self-employment income on their SA100 tax return.You can start on Individual Free, the no-cost plan, which allows you to create and send five sales invoices each month, manage your income and expenses information, manually record your cash expenses, and provide a self-employed tax summary.There’s also the option to upgrade to the Individual paid plan for £7 per month, plus VAT. This unlocks extra features like AI-powered expense auto-categorisation, snap and scan for receipt records, and the ability to connect up to 10 bank accounts.Just keep in mind that you can’t upgrade directly from Sage Individual to Sage Accounting Start. You’d need to cancel your subscription, and purchase a new license. How much does Sage cost?For sole traders who are VAT-registered (or a director-only limited company), then you’ll need to look at Sage’s Accounting Start plan, which costs £18 per month (so it’s on the more expensive side of the spectrum). It’s a solid product overall, but you’ll paying for brand name recognition, to some extent. You can read more in our complete guide to Sage’s pricing. 0 out of 0 backward forward Plan Cost Features Accounting Start Accounting Standard Accounting Plus £18/month (+ VAT)90% off for three months £39/month (+ VAT)90% off for three months £59/month (+ VAT)90% off for three months Create and send unlimited sales invoicesSubmit VAT returns24/7 support Advanced reporting capabilitiesUnlimited usersCash flow statements Support for multiple currenciesInventory management What are the standout features?Sage has its own receipt capture software, AutoEntry, which effortlessly feeds into you bookkeeping records.Sage Copilot, its new AI-powered assistant, is considered to be one of the better early AI products, according to our expert accountant.Unlimited sales invoices are provided on the entry level plan, which is great value for money.Easy connectivity, as Sage painlessly connects to big-name apps like Stripe, PayPal and GoCardless.What are the disadvantages of Sage?Completing expense reports was an area I found slightly frustrating. It might not be the best fit for users that need to upload a large volumes of expenses.Our expert accountant found that the mobile app offered by Sage was quite lightweight in terms of functionality, with QuickBooks providing the strongest option. Expert opinion: Dan Heelan on Sage Sage, a stalwart of the accounting software world, has been providing bookkeeping and account solutions since the 1980s, so it knows its users. Its software is very user-friendly, fast and easy to move round. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 6. FreshBooksBest for service based businesses wanting project and time tracking FreshBooks Compare Deals Starting price from: £15/month Free trial: 30 days (if another business is added, this gets another 30 day free trial) Get support at any hour from the 24/7 customer support chatbot Precise time tracking for billable hours Intuitive, user-friendly interface Summary Based out of Toronto, Canada, FreshBooks is designed primarily for SMEs. To date, over 30 million people have used FreshBooks in over 160 countries. It’s certainly geared towards the needs of small businesses and sole traders, but high-level accountants and larger operations may find it too limited. Show moreless Suitable if: Time tracking and project management is a must-have You want 24/7 assistance from a chatbot You want an aesthetically pleasing interface Not suitable if: You want a mobile app to monitor your financial data from You want custom reporting You want a simple messaging system to contact clients Is FreshBooks a good choice for the self-employed?FreshBooks includes an unlimited time-tracking feature on all its plans, in addition to mobile mileage-tracking, making it a good choice for service-based businesses. You’ll also be able to manage your budget and billing for projects, even on the Lite plan.FreshBooks also has a short learning curve, which makes it well suited to sole traders with no experience using accounting software. It’s intuitive, user-friendly, with a clear appealing interface (especially compared with a software like Clear Books). For more details about the user interface, you can read our full FreshBooks review.I found the FreshBooks interface to be user-friendly, giving us quick and easy access to the critical features we needed. Source: Startups.co.ukI really liked the vertical navigation bar (seen above), which made it fast to find key features, like invoicing. Crucially, if you do find yourself running into any problems you can get support at any time of the day or night from the 24/7 chatbot. What our users had to say… “I did think it was very intuitive to use, and finding things was easy.” How much does FreshBooks cost?FreshBooks’ Lite plan starts from £15 per month, which is about average when compared with competitors’ similar plans. However, we would flag that the Lite plan is missing the standard account reports you’d expect from this price level. There’s no Balance Sheet, which is a critical document for a business owner, and there’s also no bank reconciliation. 0 out of 0 backward forward Plan Cost Lite Plus Premium Paid monthly: £15/month (+ VAT)Paid yearly: £180/year (+ VAT)Currently 50% off for three months Paid monthly: £25/month (+VAT)Paid yearly: £300/year (+VAT)Currently 50% off for three months Paid monthly: £35/month (+ VAT)Paid yearly: £420/year (+ VAT)Currently 50% off for three months What are the standout features?Project and time tracking included on all plans – this functionality is FreshBooks niche in the accounting software spaceWhat are the disadvantages of FreshBooks?FreshBooks’ messaging system could use some work. It feels cumbersome and tricky to use and, considering your clients need to use it for it to work, this could cause some issues.While the user support chatbot is available round the clock, the phoneline is only open from 1pm until 12am, and is focused on sales calls rather than help for existing customers.Because FreshBooks has some limited features, like the cap on client numbers, most self-employed business owners will likely need one of the premium plans, which might not make the most financial sense. Expert opinion: Dan Heelan on FreshBooks FreshBooks is ideally suited to smaller business and sole traders as there are limited reporting and customisable elements. Having to pay £8 per month for every extra team member you want to add means the subscription could get costly very quick as you grow. This said, if you NEED time tracking as a key function, this is worth investigating. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 7. Clear BooksBest for sole traders looking for free software for MTD Clear Books Compare Deals Starting price from: Free Free trial: 30 days Well-designed search function enables easy access to important information Efficient and easy customisation, such as quote creation Easily create new projects with helpful pop-up feature Summary Started in 2008, ClearBooks is a UK based accounting software firm specifically designed with small businesses in mind. Freelancers, as well as small businesses, could benefit from ClearBooks, mainly thanks to its easy-to-use project creation. Show moreless Suitable if: You want to simplify tax calculations You want a simple and reliable way of submitting VAT returns through MTD You want a platform that prioritises convenience and usability Not suitable if: You’ll want support outside of standard business operating hours You want a platform that’s quick to learn You want to track the status of your invoices Is Clear Books a good choice for the self-employed?Some good news for 2025: Clear Books now provides free MTD for income tax software for the self-employed, sole traders and landlords. So, if you want to keep things small and need the cheapest option available, Clear Books is the best bet.The free plan allows you to:Submit quarterly updates to HMRC with a single clickRecord income and expensesFile your end-of-year tax returnUse built-in AI-powered smart codingYou can customise Clear Books’ dashboard to your liking so it displays the key metrics that you need. Source: Startups.co.ukClear Books can help you simplify tax calculations, reducing manual effort and ensuring accuracy. In general, it excels in convenience. The search function, for example, is incredibly intuitive, and we really liked the ‘pop-up’ approach to project creation. What our users had to say… “The dashboard is really clean. The accounts receivable end of it is really straightforward, so it’s really easy to find out who owes you money and turn quotes into invoices.” How much does Clear Books cost?Clear Books now has a free plan that you can use to get compliant with MTD for income tax. However, the paid tiers start from £15 per month. Crucially, if you want MTD VAT and CIS submissions, you’ll need to pay for the Medium plan, which is a heftier £31 per month. This won’t be ideal for sole traders looking to do a VAT return for the cheapest price possible.Additionally, the way the features are bundled into the plans doesn’t always make it clear to business owner which tier will be right for them. This doesn’t make Clear Books the best for scalability, so Xero will be a stronger option. 0 out of 0 backward forward Plan Cost MTD Income Tax Small Medium Large Free Paid monthly: £15/month (+ VAT), currently £7.50/month (+ VAT) for the first three monthsPaid yearly: 10% offPaid every two years: 20% off Paid monthly: £31/month (+ VAT), currently £15.50/month (+ VAT) for the first three monthsPaid yearly: 10% offPaid every two years: 20% off Paid monthly: £41/month (+ VAT), currently £20.50/month (+ VAT) for the first three monthsPaid yearly: 10% offPaid every two years: 20% off What are the standout featuresThe end-of-year submission on the free MTD plan is the biggest benefit of the no-cost plan, and not a feature you generally see on free tiers.The “pop-up” project creator, which is very user friendly.Submit MTD VAT returns directly to HMRC, but only on the Medium plan.Straightforward customisation tools mean can toggle different features to suit your needs.What are the disadvantages of Clear Books?There was quite a steep learning curve when getting to grips with Clear Books – more so than more user-friendly options, like QuickBooks and Zoho Books, and even more so than Xero, but we’d say it’s worth the time investment.Clear Books interface does feel a little dated. For example the bank reconciliation and categorisation felt clunkier than any of the slicker competitors.If you do run into difficulties, another limitation of the platform is the support hours. Support is only available 9am to 5pm on weekdays, so if you need support outside of traditional working hours, you’ll be out of luck. Expert opinion: Dan Heelan on Clear Books Clear Books focuses on convenience which does add a degree of simplicity – with easy pop-ups and customisable dashboards adding further support and assurance to a novice user. AI-powered smart coding and build in receipt capture, again, keeps things efficient. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd How do I choose the best self-employed accounting software?Regardless of whether you’re self-employed, in a partnership, or running a limited company, you need to decide what your ‘must haves’ are and what you can live without.One thing to keep in mind though when dealing with the top tier accounting software platforms: they’re all going to have certain features you would expect, and many will offer similar levels of functionality. This would include:Dashboard analytics showing you cashflow and paymentsA mobile app to let you manage your accounts on the moveVAT tracking and returnsSo, you can at least be confident that if you’re choosing from the top tier platforms you can’t necessarily go wrong: it’s more about finding the platform that’s best suited to your business and workflow.If you’re just using accounting software to submit a self-assessment tax return, there’s no point in paying for a more advanced software plan that includes complex tools, like multi-currency bank accounts.Understandably, you’re going to need to keep overheads low, but don’t just automatically go for the budget option. It might be missing a critical feature you’ll need, like the ability to calculate Construction Industry Scheme (CIS) deductions, for example.Think about usage limits, as some plans will have a cap on client numbers. You should also think about your skill level when it comes to accounting software. If you’re an accounting novice, prioritise a user-friendly platform like Zoho Books.Finally, remember that most providers offer a free trial – it’s always better to take new software for a test drive before you get your credit card out! The top five factors you should compare in accounting software for the self-employed Usability: make sure it’s user friendly! You’re a one-person-band after all and you need something that’s quick and easy to use.Core functions: these features will be the backbone of your system, so make sure it’s equipped to handle easy and customisable invoicing, clear expense tracking, reliable tax management and detailed financial reporting.Mobile app: the self-employed often find themselves rushing around, so you’ll want to keep your eyes peeled for accounting software that offers a well-designed mobile app to stay on top of your accounts, wherever you are.Seamless bank integration: connecting your accounting software with your bank will make your life so much easier and import transactions much faster.Scalability: you never know where your self-employed venture will take you, so make sure you have a platform that will be able to grow along with you. How we test accounting software for self-employed business owners in the UKAt Startups, it’s imperative to us that the product recommendations we give to you are useful, accurate, and based on thorough product testing.This is why our dedicated, in-house research team carried out 37 user tests, which amounted to a total of 57 hours of actual testing.We completed a massive 555 tasks on seven different accounting software platforms. These tasks were separated into the six categories we felt were the most essential to accounting software for self-employed people in the UK:The core accounting tools and features of the software.The tools that equip you for financial planning and visibility over your finances.How efficiently the software helps you run the daily operations of your business, including integrations and mobile apps.What help and support the platform offers, and what hours these are accessible in.The price of the software, including hidden fees and extra costs.And finally, the usability of the platform.Each of these was then given an appropriate weighting that related to how crucial they are for freelancers, sole-traders and the self-employed. Jump back into any of our reviews: Compare self-employed accounting software 1. Zoho Books 2. FreeAgent 3. QuickBooks 4. Xero 5. Sage 6. FreshBooks 7. Clear Books How do I choose the best self-employed accounting software? How we test accounting software for self-employed business owners in the UK Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Tags Topic spotlight Written by: Eddie Harris Senior Reviews Writer Eddie is resident Senior Reviews Writer for Startups, focusing on merchant accounts, point of sales systems and business phone systems. He works closely with our in-house team of research experts, carrying out hours of hands-on user testing and market analysis to ensure that our recommendations and reviews are as helpful and accurate as possible. Eddie is also Startups video presenter. He helps create informative, helpful visual content alongside our written reviews, to better aid customers with their decision making. Eddie joined Startups from its sister site Expert Reviews, where he wrote in-depth informational articles and covered the biggest consumer deals events of the year. And, having previously worked as a freelancer providing screenplay and book coverage in the film and television industry, Eddie is no stranger to the demands of the sole trader. Reviewed by: Dan Heelan Licensed Accountant and founder of Heelan Associates Dan Heelan is a Licensed Accountant and the founder of Heelan Associates, a UK accounting firm dedicated to helping small businesses thrive and scale. With 18+ years of hands-on experience as a practicing accountant and a former small business owner himself, Dan possesses real-world expertise in the financial lifecycle of an entrepreneur - from initial bookkeeping to complex tax strategy. He and his team have personally guided over 3000 UK clients through successful growth, offering comprehensive support across accounts, tax, and payroll. Dan is widely recognized for his authoritative, practical financial advice, shared weekly with his highly engaged audience of over 50,000 small business owners and entrepreneurs on YouTube. His unique blend of high-level tax knowledge and direct, operational experience with leading accounting software ensures his advice is both technically sound and immediately applicable to your business growth.