Choosing accounting software as a UK sole trader isn't about the longest feature list — it's about the few things that actually matter when HMRC, Making Tax Digital, and your time are on the line. Here's what to weigh, honestly, before you pay for anything.
1. MTD for Income Tax readiness
The single biggest question for 2026 onward: is it on HMRC's compatible-software list, and does it handle the new quarterly updates? Making Tax Digital for Income Tax phases in by income:
- • Over £50,000 → from April 2026
- • Over £30,000 → from April 2027
- • Over £20,000 → from April 2028
Pick something MTD-ready now and you avoid a migration later. See our MTD for Income Tax checklist.
2. Real pricing, not headline pricing
Watch what you pay after the intro offer expires, and watch per-feature add-ons that quietly push you up a tier. Compare the year-two price, not the £1-for-six-months hook. The table below shows current entry pricing verified July 2026.
3. Bank feeds that actually reconcile
Automatic transaction import plus rules — not a monthly CSV export you reconcile by hand. Confirm your specific UK bank connects before you switch; coverage varies by provider.
4. Invoicing that gets you paid
Templates, automatic reminders, and pay-by-link so clients can settle in a click. For many sole traders this is the feature that actually moves cash, not the ledger.
5. Expense capture
Photograph a receipt on your phone and have it become a categorised expense — mileage too, if you travel for work. The paper always fades; capture it the day you get it.
6. Getting your data out
Check you can export your records without lock-in before you commit. If leaving means losing your history, that's a cost — factor it in now, not at year-end.
7. Support when it's your money on the line
What channels, what hours, and is the help UK-relevant (VAT, MTD, Self Assessment)? Generic chatbots are fine until a filing deadline — then you want a human who understands HMRC.
At a glance (UK pricing, verified July 2026)
| Provider | Entry price | MTD-ready | Bank feeds | Best for |
|---|---|---|---|---|
| Zoho BooksAffiliate | Free / £12 | Yes | Yes | Clear pricing, self-serve sole traders See Zoho Books pricing → |
| QuickBooks | £10 | Yes | Yes | Market-leading MTD support Official site |
| Xero | £7 | Yes | Yes | Working with an accountant Official site |
| FreshBooks | £15 | Check | Yes | Invoicing-first freelancers Official site |
Affiliate disclosure
Some links on this page are affiliate links, clearly labelled. If you sign up through the Zoho Books link we may earn a commission at no extra cost to you. It doesn't change what we recommend, and every price here is one you can verify on the provider's own site. This is general information, not financial advice.