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 13 May 2026 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 6 Months Visit Xero 2 of 3 Sage: Try out an AI-powered assistant FREE Visit Sage 3 of 3 Compare software deals to find the best option Compare Costs Zoho Books is the best accounting software for the self-employed thanks to its free plan and simple invoicing system which we determined from our 57 hours of hands-on testing.We conducted analysis into seven top accounting software platforms, testing them across 1,512 areas of investigation, to identify the strengths and weaknesses of our ranked recommendations.With the threshold for Making Tax Digital for Income Tax set to drop to £30,000 for sole traders and landlords next year in 2027, the best time to get set up with the best HMRC-compliant accounting software is today. Key takeaways Zoho Books is the best self-employed accounting software thanks to its simple-to-use invoicing system, helpful tools, and free plan. Clear Books also 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. How do I compare the best 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)80% off for 6 months Free £10/month (+ VAT)£5/month for 6 months (+ VAT) £10/month (+ VAT)Get 90% off QuickBooks for six months £18/month (+ VAT)First three months FREE £15/month50% off for 3 months Free Making Tax Digital: critical information These are the key points you need to know:From April 6 2026, all sole traders (and landlords) with gross income of over £50,000 per year have been required to start MTD for Income Tax.MTD for Income Tax requires you to submit quarterly income and expenses reports to HMRC: the first quarterly update is due by August 7th. You need to keep digital records. You will need to submit a final declaration at the end of the financial year to finalise your tax position.You can find more information in our full guide to Making Tax Digital. Why trust us? This is how we review accounting software We use an independent, user-led testing process to determine our ranking of the best accounting software for the self-employed.We used the findings of our own Accountancy Sector Report to refine the six most important criteria for self-employed business owners: ability to handle core accounting tasks (20%), tools for financial planning (20%), features for increasing efficiency (15%), options for help and support (15%), the value for money (15%), and ease-of-use(15%).You can find more information about our judging process in the full methodology section. 1. Zoho Books: best overall self-employed accounting softwareOverall rating: 4.8Price from: free (paid plans start from £10 + VAT per month)Free trial: 14 daysRead our complete Zoho Books reviewZoho Books is the best accounting software for the self-employed, as it doesn’t overcomplicate bookkeeping, having the most user-friendly system I’ve tested.Everything from client set up to analysis and reporting was completed with ease, and I found Zoho Books’s invoicing system in particular to be very straightforward and simple.I really love the simple design of the Zoho Books interface, which makes it a pleasure to use. Source: Startups.co.ukZoho Books’s standout feature is the free plan, which will be essential to sole traders who need to stay MTD-compliant while minimising outgoings. Zoho Books’s no-cost tier is our recommendation for the best free accounting software due to features like:Capable of sending your quarterly updates and End-of-Year submissions for MTDCustomisable invoices50 receipt auto-scans included per monthConnect to a payment gateway, including Stripe What are Zoho Books's best features? The Zoho ecosystem: you can seamlessly connect Zoho's other products, like CRM or email systems, for an all-in-one suite Customer portal: your clients can view and manage their transactions, even on the free tier Clear dashboard for small business owners: cash flows and payments are clearly displayed Are there any drawbacks? Free plan has restrictive transaction caps: there's a limit of 1,000 sales invoices and 1,000 purchases Unlike Xero, there's no 24/7 support: you can only get assistance during working hours The built-in receipt capture technology is basic: the paid add-on version is superior How much does Zoho Books cost?Along with the free plan, Zoho Books has a wide range of plans to suit small business owners, with the entry level Standard plan (£12 + VAT per month) supporting custom reporting:Free StandardProfessionalPremiumCost per month (paid monthly)£0 £12 + VAT £24 + VAT£30 + VATCost per year (paid annually) £0 £10 + VAT £20 + VAT£25 + VATNumber of users One user (and one accountant)Three usersFive users 10 usersZoho Books even has two advanced plan for SMEs with more sophisticated needs, like full inventory management and deeper reporting:EliteUltimateCost per month (paid month)£99 + VAT£199 + VAT Cost per year (paid annually) £85 + VAT£165 + VAT Number of users 10 users15 usersKeep in mind you can only add ‘bills’ into your system on the ‘Professional’ plan, which is an important feature many VAT registered owners will need.Who do we recommend Zoho Books to?We’d recommend Zoho Books to any sole trader or landlord whose revenue falls between £20,000 and £50,000 and needs a free, simple, MTD-ready solution. Expert Opinion: Licensed Accountant 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 What help and support does Zoho Books provide? The hours for live chat and phone help are limited to 9am to 6pm, but you can also get support via email, a forum, or the knowledge centre. I found the self-help page to be easy to use, with useful how-to guides. 2. FreeAgent: best if you bank with NatWestOverall rating: 4.5Price from: free (with a qualifying bank account), or starting from £19 + VAT per monthFree trial: 30 daysFreeAgent is the best choice if you have a business current account with NatWest, as you’ll get comprehensive accounting software free of charge. You can also get a FreeAgent account with Mettle, as long as you make one transaction per month.If you can get a no-cost version of FreeAgent, you’ll get access to accounting software that’s been designed with small business owners in mind, with an intuitive, user-friendly interface and helpful dashboard reminders. FreeAgent has a clear user interface, which makes navigating around the platform easy. Source: Startups.co.ukConsidering it’s software that can be accessed for free, you get some excellent features like:Automatic bank transaction importsFully MTD readyFreeAgent’s support accountants are available for helpTax Timeline to keep track of what you owe to HMRCThe traffic-light system for bank transactions where they are categorised as “Explained”, “Unexplained”, “Manually added” or “Marked for approval”. Seamlessly connect FreeAgent to Amazon UK Marketplace (£6 + VAT per month) What are FreeAgent's best features? The only software we tested that gives you built-in tax forecasting and planning tools at no extra cost Smart receipt capture: helpfully guides you through the next steps Multicurrency included: typically gated behind expensive, premium tiers Are there any drawbacks? The help guide link is difficult to locate, and takes you to an external site, which felt disjointed If you don't qualify for a free plan, it can be costly compared to competitors FreeAgent doesn’t provide autofill when you are manually entering a bill (but it will for receipt capture or clearing down your bank account How much does FreeAgent cost?FreeAgent (without a qualifying bank account) can be expensive for the self-employed, starting at £19 per month:LandlordSole TraderPartnership or LLPLimited companyCost per month (paid monthly)£10 + VAT£19 + VAT£27 + VAT£33 + VATCost per year (paid annually) £100 + VAT£190 + VAT£270 + VAT£330 + VATNumber of users Unlimited Unlimited Unlimited Unlimited If you are unable to get the free version, we’d recommend Xero or QuickBooks for similar plans that are more cost effective.Who do we recommend FreeAgent to?We recommend FreeAgent to freelancers or sole traders who want a simple but highly functional software, and don’t mind opening a business account with Mettle or NatWest. Expert Opinion: Licensed Accountant 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 What help and support does FreeAgent provide? FreeAgent has phone support 9am - 5pm from Monday to Thursday, and 9am - 4pm on Friday. You can also get support through email, live chat, and the knowledge centre. 3. QuickBooks: best mobile accounting appOverall rating: 4.5Price from: £10 + VAT per month (currently you can get 90% off)Free trial: 30 daysRead our full review of QuickBooksQuickBooks has an excellent mobile accounting app, for easy bookkeeping on the move, as it’s one the most well designed and feature rich on the market: its receipt capture tool can scan and read your receipts from the mobile app, and can automatically track mileage.With QuickBooks, you can modify your reports and tailor them to your needs. Source: Startups.co.ukQuickBooks has multicurrency support on the Essentials tier (£38 + VAT per month) which is very good value for money for self-employed owners who have banks in different currencies (which is common when using PayPal or Revolut).QuickBooks offers a lot of value in terms of features versus cost, with standout features like:Extensive customisation: tailor the menus to your liking, as well as extensive, customisable reports (you can read more in my QuickBooks vs FreshBooks comparison)AI-powered bank feeds: take the manual effort out of categorising your expensesFree onboarding session: QuickBooks offers owners assistance with setting up the softwareOne important thing 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. What are QuickBooks's best features? QuickBooks predicts your transaction categorisation Standout bank ‘reconciliation’ function: gives you confidence that all the numbers add up (especially as automatic links to your bank can fail) QuickBooks has over 750 possible third-party integrations, for increasing efficiency Are there any drawbacks? QuickBooks has a much steeper learning curve than simpler options like Zoho Books or FreshBooks (though you'll get a lot out of it once you master it) Time tracking is only available on the Essential tier, so FreshBooks is a much cheaper option for this specific feature QuickBooks doesn't have an option for a free plan How much does QuickBooks cost?QuickBooks doesn’t have a free plan, but the Sole Trader plan starts at a very competitive £10 per month, and there’s currently a promotion where you can get 90% off your first six months if you pay monthly, and 90% off your first year if your pay yearly:Sole Trader PlusSimple StartEssentialsPlusAdvancedCost per month (paid monthly)£10 + VAT£16 + VAT£38 + VAT£56 + VAT£123 + VATCost per year (paid annually) £108 + VAT£172 + VAT£410.40 + VAT£602 + VAT£1328.40 + VATNumber of users One user (and accountant)One user (and accountant)Three users (and accountant)Five users (and accountant)25 users (and accountant)You can find out more details in our full QuickBooks pricing guide.Who do we recommend QuickBooks to?We’d recommend QuickBooks to digital freelancers and ecommerce sellers, due to the multi-currency support on a mid-tier plan. Expert Opinion: Licensed Accountant Dan Heelan on QuickBooks... Whilst QuickBooks takes a little time to get used to 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 What help and support does QuickBooks provide? QuickBooks has phone support, but you need to wait for them to call you back, and phone support hours are 8am to 7pm on weekdays. Live chat with a human is available 8am to 10pm on weekdays, and 8am to 6pm on weekends. You can get 24/7 support from a chatbot, and also access the forum and the knowledge centre for support. 4. Xero: best for rapidly growing businessesOverall rating: 4.3Price from: £7 + VAT per monthFree trial: 30 daysRead our full review of Xero Xero is best for self-employed owners who are scaling rapidly, as Xero’s extremely well balanced upgrade path can support your business if it jumps from £50,000 to £100,000 in revenue.Owners could go from a microbusiness to a multi-million pound enterprise and never have to switch accounting software using Xero, without losing any of their MTD history or audit trails.Xero is a more complex software than a simple solution like Zoho Books, but arguably less so than QuickBooks. Source: Startups.co.ukXero is feature-packed, but without sacrificing usability, with the easiest interface for quickly dealing with your bank transactions. Along with this, you can expect solid tools like:A reliable client portalA simple bills tool with straightforward client creation and flexibility over currency settingsA new data analytics tool powered by Syft (a company acquired by Xero), so you can see how well your business is performing in greater detail What are Xero's best features? Xero boasts the largest amount of external plug-ins with 1000+ possible apps Xero provides a comprehensive list of reporting options, which is great for growing businesses Xero owns Hubdoc, which means you’ll be supplied with a fully separate app to capture receipts, read the data, and suggest categories Are there any drawbacks? Xero has a reasonably steep learning curve to master Multicurrency functionality is only included in the more costly Comprehensive plan There's no free plan for MTD How much does Xero cost?While not having a free plan, one of Xero’s strength for owners is the well-thought out plans and growth path:SimpleIgniteGrowComprehensiveUltimateCost per month (paid monthly)£7 + VAT£16 + VAT £37 + VAT£50 + VAT £65 + VATNumber of users UnlimitedUnlimitedUnlimitedUnlimitedUnlimitedWho do we recommend Xero to?We recommend Xero’s to ambitious self-employed owners, who are growing beyond more than just a side-hustle, and need something heavyweight with scalability. Expert Opinion: Licensed Accountant 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 What help and support does Xero provide? Xero provides 24/7 online support: you can raise a case through the AI-powered assistant, or through Xero Central. There isn't a phone line, but Xero may call you back after raising a case with them, and you can get information through the knowledge centre or forum. 5. Sage: best for AI-powered assistanceOverall rating: 4.2 Price from: £18 + VAT per monthFree trial: three monthsSage is the best choice for AI-powered help: the AI productivity assistant, Sage Copilot, is included on all plans, and is one of the better early AI products, according to our expert accountant.Sage Copilot can help reduce the admin burden on time poor sole traders by:Setting up automatic payment reminders for your clientsDraft and refine the copy for the reminder messagesAutomatically categorise and reconcile paymentsSage provides branding tools, like themes and logos, for your external documents. Source: Startups.co.ukI found the Sage interface to be fast and user-friendly, with the progress bar for quoting standing out as particularly helpful. Alongside the customisable P&L statement and invoicing, Sage also offers helpful features like:AutoEntry: Sage’s own receipt capture software which effortlessly feeds into your bookkeeping recordsUnlimited sales invoices on the entry level planEasy connectivity: Sage seamlessly connects to apps like Stripe, PayPal and GoCardless What are Sage's best features? Carbon footprint tracking on all plans: especially important as emissions data is becoming increasingly required for UK government contracts and consulting bids Seamless invoice management Tailored logos and themes: Sage's customisability on external documents ensures strong brand identity Are there any drawbacks? The mobile app is more lightweight compared to competitors like QuickBooks Sage's entry level plan is pricier compared to its competitors Navigation could be improved: in my testing, trying to locate certain features like currency settings and expense reporting was difficult How much does Sage cost?Sage Start Sage StandardSage PlusCost per month (paid month)£18 + VAT£39 + VAT£59 + VATNumber of usersOneThree UnlimitedSage has a separate product called Sage Sole Trader, which has a free plan; you can read more about this in our complete guide to Sage’s pricing. If you’re VAT-registered (or a director-only limited company), you’ll need Sage’s Start planWho do we recommend Sage to?Sage is great for freelancers in service-based roles due to the strong invoice workflows and quoting. Additionally, the speed and ease-of-use is suited to contractors and handymen. Expert Opinion: Licensed Accountant 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 What help and support does Sage provide? Sage has live chat: with a human from 8am - 6pm on weekdays, and 9am to 5pm on weekends. You can also contact Sage by phone from 8am to 8pm on weekdays. There's also a community forum, a knowledge centre, and you can get help from a chatbot 24/7. 6. FreshBooks: best for service based businesses wanting project and time trackingOverall rating: 4.2Price from: £16 + VAT per monthFree trial: 30 days (if another business is added, this gets another 30-day free trial)Read our full review of FreshBooks FreshBooks is the best choice for service-based businesses who need unlimited time-tracking on the lowest tier. On FreshBooks’s entry level Lite plan (£16), you can manage budget and billing management for projects, as well as get access to mobile mileage-tracking.FreshBooks’s interface includes a vertical navigation bar designed to simplify invoicing and quoting workflows, and I found FreshBooks overall to be highly intuitive and easy to use.I found the FreshBooks interface to be user-friendly, giving us quick and easy access to the critical features we needed. Source: Startups.co.ukFreshBooks is simple, easy, and basic, and the project and time tracking functionality on all plans is FreshBooks’s niche. However, aside from this, Freshbooks is not as feature packed as its competitors. You can read more in my breakdown of FreshBooks vs QuickBooks. What are FreshBooks's best features Get support day or night from the 24/7 chatbot Intuitive, user-friendly interface that's simple to learn Precise time tracking for billable hours Are there any drawbacks? Our testing found FreshBooks’s messaging system cumbersome and tricky to use The cap on client numbers on the entry level plans will mean most self-employed business owners will likely need one of the premium plans There's no bank reconciliation on the Lite plan How much does FreshBooks cost?Lite Plus PremiumCost per month (paid monthly)£16 + VAT£30 + VAT £42 + VATCost per year (paid annually)£192.22 + VAT£360 + VAT£504 + VATNumber of usersOneOneOneWhen considering plans, the key point to bear in mind is that the Lite plan is missing the standard account reports you’d expect from this price level, such as a balance sheet, making it unsuitable for many businesses.Who do we recommend FreshBooks to?FreshBooks is suited to simple sole traders who require time-tracking and project management as must haves, however, there are limited reporting and customisable elements. Expert Opinion: Licensed Accountant Dan Heelan on FreshBooks... Having to pay £8 per month for every extra team member you want to add means the subscription could get costly very quickly as you grow. That 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 What help and support does FreshBooks provide? ‘FreshBot’, FreshBooks's chatbot, can be accessed 24/7. When we tested 'FreshBot', it suggested the only way to contact a FreshBooks ‘Support Specialist’ is to provide your phone details and wait to be called back. You can request email support, or you can get information from the knowledge centre. 7. Clear Books: best alternative for a free MTD planOverall rating: 4.0Price from: £5 + VAT per monthFree trial: 30 daysClear Books is a UK based firm that provides a completely free MTD for Income Tax plan that users will prefer over Zoho Books, if they find Zoho’s terms too ‘Americanised’ (like using the term ‘vendor’ instead of ‘supplier’).Clear Books keeps things simple and cheap, excelling in convenience, and I really liked the ‘pop-up’ approach to project creation.You can customise Clear Books’s dashboard to your liking so it displays the key metrics that you need. Source: Startups.co.ukThe free MTD plan allows you to:Submit quarterly updates to HMRC with a single click, as well as Year End filingsWorks with CIS subcontractorsRecord income and expensesUse built-in AI-powered smart coding What are Clear Books's best features? Clear Books can help you simplify tax calculations: reducing manual effort and ensuring accuracy The “pop-up” project creator is very user friendly Straightforward customisation tools: toggle between different features to suit your needs Are there any drawbacks? The bank reconciliation/categorisation is clunky compared to competitors, especially QuickBooks Clear Books has a steep learning curve, especially compared to Zoho Books We felt that the Clear Books interface feels dated in 2026 How much does Clear Books cost?You can start with Clear Books for free, thanks to its no-cost Sole Trader Free plan, which is MTD-ready:Sole Trader FreeSole TraderSole Trader + VATCost per month (paid monthly)£0£5 + VAT per month£15 + VAT per monthNumber of usersOne userUnlimitedUnlimitedClearBooks also has a range of plans for small businesses, just note that MTD VAT and CIS submissions are only on the more expensive Medium plan:Small Medium LargeCost per month (paid monthly)£16 + VAT per month £34 + VAT per month£44 + VAT per monthCost per month (paid annually)£14.40 +VAT per month£30.60 + VAT per month£39.60 + VAT per monthCost per month (paid for two years)£12.80 + VAT per month£27.20 + VAT per month£35.20 + VAT per monthNumber of usersUnlimitedUnlimitedUnlimitedHow the features are bundled into Clear Books’s plans doesn’t always make it obvious to business owners which tier will be right for them, with a less clear upgrade path than Xero.Who do we recommend Clear Books to?We recommend Clear Books to sole traders who just need a basic MTD-ready free software that is built with UK business owners in mind. Expert Opinion: Licensed Accountant 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 built-in receipt capture, again, keeps things efficient. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd What help and support does Clear Books provide? Phone support is only available 9am to 5pm on weekdays, so if you need help outside of traditional working hours, you’ll be out of luck, but Clear Books does have a forum and knowledge centre. You can also get email support though a contact form. How do I choose the best self-employed accounting software?These are the top five factors you should look for in accounting software for the self-employed:UsabilityYou’re a one-person-band, and so you’ll need software that’s quick and easy to use. Zoho Books was the easiest-to-use software that I tested, with a short-learning curve and simple navigation.The key featuresMake sure it’s equipped to handle easy and customisable invoicing, clear expense tracking, reliable tax management, and detailed financial reporting. Our top recommendation, Zoho Books, had the best range of core features for the self-employed.A well designed mobile appThe self-employed often find themselves rushing around, so you’ll want a well-designed mobile app to stay on top of your accounts that can ideally handle autonomous reconciliation and MTD filing. We recommend QuickBooks for the best mobile app currently on the market.Seamless bank integrationConnecting your accounting software with your bank will make your life so much easier and import transactions much faster.ScalabilityYou need a platform that can grow alongside you, so you don’t need to go through the hassle of buying a new license if you outgrow your plan. Xero has the best upgrade path for scaling businesses.One thing to keep in mind is that almost all the top accounting software platforms will offer similar levels of functionality, including:Dashboard analytics showing you cashflow and paymentsInvoicing and quoting A mobile app to let you manage your accounts on the moveCompliance with MTD for Income Tax Finding the platform that’s best suited to you will be about the specific tools to suit your business and workflow, like the ability to calculate Construction Industry Scheme (CIS) deductions, for example. DIY software vs. an accountant: which do I need? Cloud accounting software can potentially be sufficient for very basic needs, although professional accountants are recommended for complex tax or compliance questions.It’s worth remembering, though, that accounting software is just a tool, whereas an accountant brings the actual expertise. You should consult an accountant if you have concerns around compliance.However a general rule of thumb is:Simple sole traders: with a very small amount of invoices (less than 20), and standard expenses, can potentially use software only.Sole traders/limited companies: with a high transaction volume, deals with capital gains, rental income, or student loans, should use a hybrid approach (accounting software, and speak to an accountant).Complex limited companies/VAT-registered businesses: if you handle payroll or CIS schemes you should hire a full-service accountant. How do we research and test accounting software?We use a user-led approach, which amounted to 37 user tests, and a total of 57 hours of actual testing of seven top platforms. We completed 555 tasks as part of this process.These tasks were separated into the six categories we felt were the most essential to accounting software for self-employed people in the UK, as based on the findings of our own Accountancy Sector Report.Each of these was then given an appropriate weighting that related to how crucial they are for freelancers, sole-traders and the self-employed:1. What core accounting tools and features does the software include? (20%)We assessed if the software can handle recurring invoices, send out automatic payment reminders, if the software can successfully calculate and add/deduct tax, if it provides tools for tax forecasting and planning, how the software handles bank syncing, and if it can provide time tracking.2. Does it include tools that equip me for clear financial planning? (20%)We analysed how effectively the software gives the self-employed visibility over their finances: this included tracking upcoming monthly bills and expenses, creating cashflow projections, budgets, reporting capabilities like balance sheets, and the extent that it supports compliance and financial regulations.3. How does the software help me run my daily operations? (15%)We reviewed the extent of the platform’s customisability, the range of third-party applications you can integrate, Open API capabilities, how well the mobile app functions, and the range of AI tools and automations.4 . What help and support does the platform offer? (15%),We assessed the range of support types available, what hours these are accessible in, tested the accuracy of the knowledge centre, and examined the security of the platform.5. Am I getting a good deal? (15%)We analysed the total cost of the software, including hidden fees and extra costs, and if there was a free plan or a contract to sign.6. Is the platform easy to use? (15%)I got hands-on with the software, carrying out the same day-to-day tasks actual self-employed users would need to, to determine the overall ease-of-use of each platform’s interface, and if I would recommend it. What’s the best accounting software for Making Tax Digital for Income Tax?For all self-employed users of Making Tax Digital, your software will need to be capable of:Creating, storing, and correcting digital records of your income and expenses relating to self-employment and propertySubmitting your quarterly updates to HMRCSubmitting your final declaration by 31 January the following yearFor more details about record-keeping to maintain MTD compliance, we recommend jumping over to our essential Making Tax Digital for Income Tax guide.All our recommendations for the best self-employed accounting software are MTD-ready. You can use any of our above recommendations to keep digital records and submit the required quarterly updates to HMRC:Zoho Books: one of the easiest platforms to get to grips with, and provides a free tier.FreeAgent: if you qualify for a free plan, then you get access to an impressively comprehensive MTD-ready accounting software for no cost.QuickBooks: while it doesn’t have a free tier, QuickBooks does come with a first-class mobile app that self-employed clients can use to manage their accounts on the move.Xero: has a low-cost starter tier specifically for sole traders and landlords, and a great range of plans to support ambitious businesses, as well as supporting foreign property as an income source.Sage: in addition to the main range of Sage Accounting software plans, there’s also Sage Sole Trader Free, a no-cost MTD-ready option for simple needs (you can create and send five invoices per month).FreshBooks:* a solid option for self-employed business owners who need to be MTD-ready but also require unlimited time-tracking.Clear Books: provides a completely free MTD for income tax software for the self-employed, so it’s a solid MTD-ready option for basic needs.*We would note that FreshBooks confirms it’s MTD for ITSA-ready on its website, but during our research we couldn’t currently find it through HMRC’s tool for selecting approved software. There could be a few different reasons to explain this, but we’d recommend checking with HMRC directly for clarity. You can find more information in our guide to MTD-compliant software, and you can also jump over to our recommendations for the best free MTD-ready software. Frequently Asked Questions Which UK banks offer FreeAgent accounting software for free? FreeAgent is available at no cost to business owners who have a current account with NatWest, Royal Bank of Scotland, or Ulster Bank. Its also free for those using Mettle, but you will need to make at least transaction per month. I’ve moved from Sole Trader to a Limited Company; can I keep using the same software? This will depend entirely on the type of software you're using, but not necessarily. With some, you can keep using the same software, though you will need to upgrade to a new plan level which will have a higher cost attached. What is the best accounting app for tradespeople who need to capture receipts on-site? We recommend QuickBooks as having the best mobile app, which allows you to snap and upload receipts, which is great for builders and trades who need ``on-the-go`` capture. Which software is most affordable for filing a simple Self Assessment? If you don't qualify for a no-cost FreeAgent plan via your bank, Zoho Books is the easiest-to-use software we tested, and has a completely free plan. What is the difference between MTD for Income Tax and MTD for VAT? Making Tax Digital for Income Tax currently applies to sole traders and landlords whose qualifying income is over the £50,000 threshold, whereas MTD for VAT only applies to VAT-registered businesses (over £90,000 in revenue). What happens to my data if I cancel my subscription? This will differ depending on your specific provider, but almost all platforms will restrict your data access, and delete with a certain timeframe (for example, within six months). You should ensure to export all your data before cancelling your subscription. Jump back into any of our reviews: How do I compare the best 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 research and test accounting software What's the best accounting software for Making Tax Digital for Income Tax? 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.