The best bookkeeping software for sole traders

Good bookkeeping software takes the dread out of being self-employed. It should help you get paid, keep every receipt, log your mileage and show roughly how much tax you'll owe. Since MTD for Income Tax arrived in April 2026, it also needs to send quarterly updates to HMRC when you're in scope. So MTD support is now a must-have, not a nice extra.

This page looks at day-to-day bookkeeping features. If your main question is simply "which MTD software should I use?", our best MTD software for sole traders answers that. Here, we compare how well each product helps you run your books week to week. Prices were checked in October 2026.

The best bookkeeping software for sole traders at a glance

Prices exclude VAT unless stated and were checked on each provider's website in October 2026. Introductory offers change often, so always confirm the live price. App ratings are from the UK App Store and Google Play in October 2026.

Which bookkeeping features does each one have?

This table only includes features we could confirm from providers' pricing information or our own product notes. Where we couldn't confirm a feature, we say "Check provider". That doesn't mean it's missing, just that you should check before you buy.

Features checked against providers' pricing information in October 2026. Plans and features change, so always confirm on the provider's website.

The best bookkeeping software in detail

Xero is a full accounting package that suits sole traders who want proper books from day one. The Simple plan is £7 a month ex VAT and covers MTD for Income Tax, with bank feeds to bring your transactions in. As you grow, higher plans add VAT returns, payroll and CIS. Most UK accountants know Xero, which helps if you hand over at year end. Read our Xero review.

Watch out for: automatic bank reconciliation (matching transactions for you) is a paid add-on on the cheapest plans, and Simple doesn't do VAT. Full price: Simple £7, Ignite £18, Grow £39, Comprehensive £55, Ultimate £70 a month, all ex VAT. Promotional discounts often run for new customers.

FreeAgent's standout bookkeeping feature is its running tax estimate. As you record income and expenses, it shows roughly what you'll owe, so January holds fewer surprises. It includes bank feeds, and its app is rated 4.8 on iOS. It's free with NatWest, RBS, Ulster Bank or Mettle, and £19 a month ex VAT otherwise. FreeAgent pays us nothing. Read our FreeAgent review.

Watch out for: without an eligible bank account, it's one of the pricier sole trader plans. Compare it in FreeAgent vs QuickBooks.

QuickBooks Sole Trader Plus is built for people who work on the move. Providers say you can photograph receipts in the app, track mileage with GPS and see a live tax estimate. At £10 a month ex VAT, it's good value for drivers and tradespeople. Its apps are rated 4.7 on iOS and 4.6 on Android. Read our QuickBooks review.

Watch out for: no VAT returns on Sole Trader Plus, and intro offers change often.

Sage Sole Trader's free plan includes invoicing (with a monthly limit) and MTD for Income Tax for non-VAT sole traders. Paid plans include bank feeds. The paid plan at £7 a month removes the limits. Its app is rated 4.7 on iOS and 4.8 on Android.

Watch out for: the free plan limits invoices and automatically sorted transactions each month, which busy traders may hit quickly.

Zoho Books' free plan allows up to 1,000 invoices a year and includes VAT returns and MTD. That's generous if you send many small invoices, such as a cleaner or a dog walker. Its apps score 4.8 on both stores.

Watch out for: bank feeds need the £12 a month Standard plan, and the software has more settings than most sole traders need.

Clear Books has a free Sole Trader plan with MTD included. The £5 Sole Trader plan adds bank feeds, and Sole Trader Plus (£15) adds VAT. It also supports CIS. It's a sensible, low-cost choice for laptop users with simple books.

Watch out for: the app is rated 2.9 on iOS, so it's not ideal for snapping receipts on the go.

Coconut is a mobile-first app for sole traders and landlords. It brings in your bank transactions and helps you keep on top of tax. Bookkeeping costs £16.99 a month, or £12.99 a month for MTD filing. Its iOS app is rated 4.7. Coconut pays us nothing.

Watch out for: it doesn't state VAT support, so it suits simpler, non-VAT businesses. Full price: MTD Bridging £49.99 a year, Bookkeeping £16.99 a month, MTD filing £12.99 a month or £129.99 a year.

Pandle Pro costs £5 a month ex VAT and includes MTD, VAT and bank feeds. It's one of the cheapest paid plans around, and it's UK-built. Pandle pays us nothing.

Watch out for: Pandle Free does not include MTD for Income Tax. The apps are poorly rated (1.5 on iOS and 2.6 on Android), so use it on a computer.

Crunch pairs bookkeeping software with access to accountants. Crunch Plus at £10 a month ex VAT includes MTD and VAT, and accountancy packages start at £27 a month. It suits sole traders who'd rather have an expert check their books.

Watch out for: Crunch Free and Lite don't include MTD for Income Tax.

What bookkeeping features matter most for sole traders?

• Invoicing: professional invoices, and a clear view of who still owes you.
• Receipt capture: photographing receipts so you can claim every allowable expense.
• Mileage: logging business journeys if you drive for work.
• Tax estimate: a rough idea of your bill, so you can put money aside.
• Bank feeds: transactions flowing in automatically, so you only need to label them.
• MTD for Income Tax: quarterly updates and your tax return sent from the software (GOV.UK).

Here's an illustration. Aisha is a self-employed mobile hairdresser with takings of £28,000 a year. She's below the £30,000 threshold for April 2027, but over £20,000, so MTD applies to her from 6 April 2028 if her income stays the same (GOV.UK). She drives between clients and buys products from wholesalers, so receipt capture and mileage matter most. QuickBooks would suit her well, and starting now means she'll be ready long before MTD begins.

How to choose bookkeeping software

1. Check your bank. NatWest, RBS, Ulster Bank or Mettle? FreeAgent is free.
2. Count your transactions. Lots? Make sure bank feeds are included.
3. Think about your day. On the road? Choose a well-rated app with receipts and mileage.
4. VAT registered? Check the plan includes VAT returns.
5. Make sure MTD is included. Some free plans leave it out.

If cost is the deciding factor, see our best free MTD software.

Who should not use sole trader bookkeeping software?

How we chose these

We started from HMRC's list of MTD for Income Tax software and kept products with sole trader plans. We scored each on bookkeeping features, price, free options, app ratings, bank feeds and support, based on our review of features, pricing and user ratings. Affiliate commission plays no part. FreeAgent, Coconut and Pandle pay us nothing. Read how we test.