The best accounting software for builders and MTD
Quick answer
For most self-employed builders, Xero is the best accounting software, because it handles CIS and MTD for Income Tax from £7 a month. QuickBooks (from £10) suits CIS subcontractors who want receipt and mileage tracking on their phone. Clear Books is the best free option and also supports CIS.
If you are a self-employed builder, bricklayer, joiner or roofer, Making Tax Digital (MTD) for Income Tax will probably reach you soon. From 6 April 2027, it applies to sole traders whose qualifying income is over £30,000 (GOV.UK). Builders also have the Construction Industry Scheme (CIS), where contractors take tax off your pay before you get it. We picked the software that handles this best, based on our review of features, pricing and user ratings. Prices were checked in October 2026.
Not sure if you need MTD yet? Use our Do I need MTD? checker. It takes 30 seconds.
Best accounting software for builders at a glance
| Software | Price (checked October 2026) | MTD for Income Tax | Free tier | CIS | VAT returns | App rating | Link |
|---|---|---|---|---|---|---|---|
| Xero | From £7/month (Simple) | Yes | No (1 month free trial) | Yes | Yes (not on Simple) | 4.8 iOS / 4.5 Android | Visit site |
| QuickBooks | From £10/month (Sole Trader Plus) | Yes | No (30-day trial) | Subcontractors on Sole Trader; full CIS on higher plans | Yes (not on Sole Trader Plus) | 4.7 iOS / 4.6 Android | Visit site |
| Clear Books | Free MTD plans, or from £5/month | Yes | Yes | Yes | Sole Trader Plus and above | n/a iOS / 2.8 Android | Visit site |
| Sage Sole Trader | Free plan, or £7/month | Yes | Yes (with limits) | Sage Accounting Standard | On Sage Accounting plans | 4.7 iOS / 4.7 Android | Visit site |
| FreeAgent | From £10/month (Landlord) or £19/month (Sole trader). Free with NatWest, RBS, Ulster Bank or Mettle | Yes | Yes, with eligible bank | Not listed | Yes | 4.8 iOS / 4.7 Android | Visit site |
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.
Our top 3 picks for builders
Best overall for builders
Xero
- Price
- From £7/month (Simple)
- MTD for Income Tax
- Yes
- Free tier
- No (1 month free trial)
- Landlords
- Yes
Xero lists CIS support and covers MTD from its £7 Simple plan. You can add VAT and payroll later without switching. Read our Xero review.
Best app for builders on site
QuickBooks
- Price
- From £10/month (Sole Trader Plus)
- MTD for Income Tax
- Yes
- Free tier
- No (30-day trial)
- Landlords
- Single property only on Sole Trader Plus
QuickBooks covers CIS for subcontractors on its £10 Sole Trader plan. You can snap receipts at the merchant and track mileage with GPS between sites. Full CIS for contractors who pay others is on higher plans. Read our QuickBooks review.
Best free option with CIS
Clear Books
- Price
- Free MTD plans, or from £5/month
- MTD for Income Tax
- Yes
- Free tier
- Yes
- Landlords
- Yes (Property plans, incl. foreign property)
Clear Books has a free MTD plan for sole traders and lists CIS support. Paid plans from £5 a month add bank feeds. Its app is poorly rated, so use a laptop.
How builders' income and costs work
Builders' income is often lumpy. You might get stage payments on a big job, a final payment on completion, and smaller cash or bank transfers for repairs. Some work comes through main contractors under CIS. Other work is direct for homeowners.
Typical expenses to record include:
- Materials: timber, bricks, plaster, fixings and anything you buy for a job
- Tools and equipment: power tools, hand tools and hired plant
- Van costs: fuel, servicing, repairs and road tax, or mileage instead
- Protective clothing: boots, hi-vis and safety gear
A photo of each merchant receipt, taken on the day, saves a lot of hunting later.
Does CIS affect MTD for builders?
Yes, in the sense that CIS subcontractors who are sole traders are in scope like any other sole trader. Whether you must join is based on your gross turnover (HMRC MTD FAQs). Your software should record the CIS deductions shown on your monthly statements from contractors. How those deductions are treated on your return is worth checking with HMRC or an accountant. Our CIS subcontractor software guide goes into more detail.
A worked example
Dan (an illustration, not a real customer) is a self-employed bricklayer. In the 2025 to 2026 tax year he invoices £36,000. Most comes from two main contractors under CIS. After CIS deductions, less reached his bank, but his qualifying income is his gross turnover of £36,000, before expenses (GOV.UK).
That is over £30,000, so Dan must use MTD from 6 April 2027. His first quarter runs to 5 July 2027, and the update is due by 7 August 2027 (GOV.UK). With Xero or QuickBooks he can log each CIS statement, snap materials receipts and track van mileage as he goes.
What to look for in builders' accounting software
- MTD for Income Tax support, so you can send quarterly updates
- CIS support, so deductions on contractor statements are recorded
- Receipt capture on your phone for merchant receipts
- Mileage tracking if you drive between sites
- Bank feeds (your bank transactions flow in automatically), so you type less
- VAT returns if you are VAT registered or close to it
- Room to add payroll if you plan to take on staff
Comparing more widely? See our best MTD software for sole traders.
Who should not choose these tools
- Builders with qualifying income of £20,000 or less, who are currently exempt.
- Builders in a partnership, because partnerships do not need MTD yet (GOV.UK).
- CIS subcontractors who want FreeAgent, because CIS is not listed on its plans. It is still a great free choice for NatWest, RBS, Ulster Bank or Mettle customers who do not work under CIS.
- Builders whose accountant already files for them, who should ask before buying.
Frequently asked questions
Do builders need MTD for Income Tax?
Yes, if you are a self-employed builder and your qualifying income is over the threshold. That means over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028. CIS subcontractors are treated like any other sole trader.
Is my qualifying income before or after CIS deductions?
HMRC bases qualifying income on gross turnover, before expenses. For a CIS subcontractor, look at the full amount you invoiced, not just what reached your bank. If you are unsure, check with HMRC or an accountant.
What is the best CIS software for subcontractors?
Xero, QuickBooks and Clear Books all list CIS support. QuickBooks covers subcontractors on its sole trader plan from £10 a month. Clear Books has a free plan. See our CIS subcontractor software guide.
Can I claim my van as a business expense?
You can usually claim business costs for a van you use for work, such as fuel and repairs, or use a mileage method instead. The right method depends on your situation, so ask an accountant before your first return.
Is there free accounting software for builders?
Yes. Clear Books has a free sole trader plan that supports MTD, and it lists CIS support. Sage Sole Trader also has a free plan, but its CIS support is on the paid Sage Accounting Standard plan.
Do I need software if my accountant does my tax return?
Possibly not. Ask your accountant how they plan to handle MTD before you buy anything.
This page is general information, not personal tax, legal or financial advice. Tax rules can change and your situation may differ. For advice on your own affairs, speak to a qualified accountant or tax adviser, or check GOV.UK.