Zoho Books review UK: is the free plan good enough for MTD?

Zoho Books is part of Zoho, a large international software company with many business apps. In the UK, it's best known for an unusually generous free plan. That plan covers Making Tax Digital (MTD) for Income Tax and even VAT returns. In this review we look at what the free plan includes, when you'd need to pay, and who it suits. We checked every price on Zoho's UK website in October 2026.

Not sure when MTD starts for you? Our Do I need MTD? checker gives you your date in about 30 seconds.

Price: how much does Zoho Books cost?

Free £0 (1 user, 1,000 invoices a year). Standard £12, Professional £24, Premium £30 a month ex VAT (cheaper paid annually).

Prices checked on Zoho's UK website in October 2026, ex VAT, on monthly billing. Annual billing is cheaper. Offers can change, so always confirm the live price.

For most sole traders, the free plan will do the job. The main reason to pay is bank feeds, which start at £12 a month. That's more than the £5 bank feed plans from Clear Books, but Zoho's free plan includes VAT, which most free plans don't.

Is Zoho Books good for MTD for Income Tax?

Yes. Zoho Books supports MTD for Income Tax. It keeps digital records of your income and expenses and sends quarterly updates to HMRC. These are due by 7 August, 7 November, 7 February and 7 May, and your tax return is still due by 31 January (GOV.UK).

Its stand-out feature is that VAT returns are included even on the free plan. If you're VAT registered and also need MTD for Income Tax, you can handle both in one free tool. That's rare.

Here's an illustration. Lena is a self-employed photographer. Her turnover in 2024 to 2025 was £62,000, which is over £50,000, so she has had to use MTD since 6 April 2026 (GOV.UK). She has also chosen to register for VAT. She sends about 40 invoices a year. Zoho Books Free covers her MTD updates, her VAT returns and her invoicing, all for £0. She just has to add her transactions herself, or pay £12 a month for bank feeds.

HMRC won't give penalty points for late quarterly updates in the 2026 to 2027 tax year, which gives new users time to settle in. Our MTD guide for sole traders explains each step.

Is Zoho Books good for landlords?

Yes, for landlords with simple affairs. Zoho Books supports landlords for MTD for Income Tax, so you can record rent and costs and send your quarterly updates. The free plan makes it a low-cost option.

Bear in mind it's general business software. It doesn't offer tenancy tracking or reminders for things like gas safety checks. Landlords with several properties may get more from specialist tools. See our best landlord software guide.

Zoho Books key features

• Bank feeds: from the Standard plan (£12 a month). Bank feeds mean your bank transactions flow in automatically.
• Invoicing: a strength. The free plan allows up to 1,000 invoices a year.
• Receipts: you can add receipts to expenses from the mobile app.
• VAT returns: yes, including on the free plan.
• CIS: not stated in the features we checked. CIS (the Construction Industry Scheme) is where contractors take tax off subcontractors' pay. If you need it, check with Zoho first.
• Mobile app: rated 4.8 on both the UK App Store and Google Play in October 2026.
• Other Zoho apps: it can work alongside Zoho's other business tools, if you use them.

Is Zoho Books easy to use?

Based on its features and ratings, the apps are very well liked, with 4.8 on both stores. The main drawback is that Zoho Books has more options than a simple sole trader needs. It was built for small businesses of all kinds, so expect a few more menus than in sole-trader-only apps. Once it's set up, day-to-day use should be straightforward.

Zoho Books pros and cons

Zoho Books compared with alternatives

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.

Clear Books also has free MTD plans, and adds bank feeds from £5 a month. Its app is weaker, though. Read our Clear Books review. Sage Sole Trader has a free plan with a well-rated app, but no VAT. Xero costs from £7 a month and is a strong all-rounder that many accountants use. Read our Xero review. For more free options, see our best free MTD software guide.

How we reviewed Zoho Books

This is a desk review. We looked at Zoho Books' features and plans as the provider describes them, and checked every price on Zoho's UK website in October 2026. We confirmed Zoho Books appears on HMRC's list of software for MTD for Income Tax (GOV.UK). We checked app ratings on the UK App Store and Google Play. We have not done hands-on testing, so our view is based on features, pricing and user ratings. Zoho pays us a commission if you sign up through our links, but this does not affect our score. Read how we test.

Final verdict: is Zoho Books worth it?

Yes, especially if you're VAT registered and want to pay nothing. Zoho Books' free plan covers MTD for Income Tax, VAT returns and plenty of invoicing, and its apps are excellent. You'll need to add transactions yourself unless you pay £12 a month for bank feeds. If you want the simplest app possible, a sole-trader-only tool may suit you better. It scores 4.3 out of 5.

Try Zoho Books free