Best Accounting Software for UK Sole Traders (2026)

Updated August 2026

If you've outgrown a spreadsheet, dedicated accounting software handles invoicing, expense tracking, MTD-compliant VAT filing, and Self Assessment prep in one place. Here's where to start.

Crunch — Online Accounting for Sole Traders

Fixed-fee accounting from £24.50/month. Handles Self Assessment, expense tracking and invoicing with no hidden costs — our recommended starting point if you want software backed by real accountants.

Try Crunch free →

How the main options compare

There isn't one "best" accounting software — it depends on your budget and how much support you want built in. Here's how the main UK options compare (prices are approximate and change, so check each provider's site for current rates):

Software	From	Best for
Crunch	£24.50/mo	Sole traders who want software + access to real accountants
FreeAgent	Free with a qualifying NatWest/RBS/Mettle business account, or from £19/mo	Sole traders already banking with NatWest/RBS
QuickBooks Self-Employed	From around £10/mo	Simpler, lower-cost option for straightforward sole traders
Xero	From £16–35/mo	Growing businesses, or if your accountant already uses Xero
Sage Accounting	From £14/mo	Sole traders wanting strong VAT and payroll support

We're not affiliated with FreeAgent, QuickBooks, Xero or Sage — they're included here for comparison only. Our recommended partner is Crunch, below.

FAQs

Do I need accounting software as a sole trader?▼

Not legally, but it makes Making Tax Digital compliance, expense tracking and Self Assessment far easier once your income or transaction volume grows past what a spreadsheet can comfortably handle.

Is accounting software mandatory for MTD?▼

Making Tax Digital for Income Tax requires MTD-compatible software or bridging software once you're within scope based on your income threshold — a plain spreadsheet alone won't satisfy the digital record-keeping requirement.

Can I switch accounting software later?▼

Yes, most platforms let you export your data, though switching mid-tax-year can be fiddly. It's usually easiest to switch at the start of a new tax year (6 April).

Prefer a personal accountant?

If you'd rather work directly with a qualified accountant instead of software, see PayToolkit Accounting Services — get help from a CIMA-qualified accountant working in UK practice.

Want to work out your numbers first? Try PayToolkit's free Tax Set-Aside Calculator and Expense Tracker — no signup required.

PayToolkit may earn a commission if you sign up via partner links, at no extra cost to you. This never affects our free calculators, which remain independent and unbiased.