Sole trading,
made simpler.
We review the tools UK sole traders actually need — accounting, banking, invoicing, insurance — and test each one against real HMRC and Making Tax Digital requirements. No sponsored verdicts. No US-first software dressed up for Britain.
Every tool a UK sole trader actually needs.
Accounting & bookkeeping
HMRC-recognised, MTD-ready software. Xero, FreeAgent, QuickBooks, Sage, Crunch, Coconut — benchmarked for the self-employed.
Business banking
UK-authorised business accounts for sole traders. Tide, Starling, Mettle, Monzo Business, Revolut — fees, feeds, and integration.
Invoicing & payments
Stripe, GoCardless, Square, SumUp, Zettle — send invoices, chase late payers, take card payments.
Insurance & legal
Public liability, professional indemnity, contracts, compliance — the basics every UK sole trader needs.
CRM tools
Scheduling & booking
Help desk
Freshdesk, Zendesk, HelpScout — for sole traders serving clients.
Email marketing
Project management
Websites & hosting
Time tracking & HR
Communication
The best accounting software for UK sole traders, 2026.
The days of running a sole-trader business on spreadsheets are almost over. With Making Tax Digital for Income Tax arriving in earnest in April 2026, every UK sole trader earning over £50,000 is legally required to keep digital records and file quarterly using HMRC-recognised software. We spent three weeks with the five leading options.
| Software | From | MTD status | Best for | Our score | |
|---|---|---|---|---|---|
|
F
FreeAgent
|
£0 |
HMRC recognised | Sole traders wanting free + MTD | 9.4/10 | Full review → |
|
X
Xero
|
£16 |
HMRC recognised | Scaling sole traders going Ltd | 9.1/10 | Full review → |
|
Q
QuickBooks
|
£12 |
HMRC recognised | Accountants-first workflows | 8.6/10 | Full review → |
|
S
Sage
|
£10 |
HMRC recognised | Traditional bookkeeping preference | 7.9/10 | Full review → |
|
C
Coconut
|
£7 |
HMRC recognised | Freelancers wanting simplicity | 8.4/10 | Full review → |
FreeAgent wins for most UK sole traders in 2026 — free via NatWest, HMRC-recognised, and purpose-built for the self-employed.
Plain-English reading for the self-employed.
Making Tax Digital: what actually changes on 6 April 2027 (and what you should do now).
From April 2027, sole traders earning between £30,000 and £50,000 will need MTD-compliant software. We explain the thresholds, the software choices, and the step-by-step path to being ready.
Xero vs QuickBooks UK 2026: the honest comparison.
Pricing in GBP, MTD status, ease of use for non-accountants, support quality. We run both for a month.
ReviewFreeAgent review: is the free NatWest deal still worth it in 2026?
MTD compliance, invoicing, Self Assessment, and the hidden migration costs nobody mentions.
Best invoicing software for UK freelancers 2026.
FreeAgent, Xero, QuickBooks, Tide and Sage for freelancers who need to get paid faster.
Deep diveSole trader or Ltd? The 2026 crossover number.
At what revenue does incorporation actually start paying? A straightforward calculation with worked examples.
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