Compare · Accounting

Best UK accounting software for 2026

With Making Tax Digital extending to sole traders earning over £20,000 from April 2028, picking the right accounting software is no longer optional. Here are the five we'd actually use.

Last updated May 2026 · Independent · We don't take affiliate fees

Cheaper isn't always better — a free tool that takes you twice as long to use costs more than a £15/mo subscription. We rank by total time-saved plus money paid, not by sticker price.

Quick comparison answer

Our current top pick is FreeAgent. It is ranked first because it is strongest for sole traders and one-person ltds and has the clearest overall trade-off against the criteria below.

How we picked

Our criteria

MTD-ready

Officially recognised by HMRC for Making Tax Digital VAT and (where applicable) Income Tax Self Assessment.

Bank feeds

Direct, automatic bank feeds — not screen-scraping. The difference between 5 minutes and an hour.

Self-employed friendliness

Does it handle the messy bits — mileage, simplified expenses, dividends — without a course?

Pricing fairness

No discount-then-double pricing. What you'll actually pay after year one.

#1Editor's pick

FreeAgent

The best for UK sole traders and small Ltds — especially if you bank with Mettle or NatWest.

Best for: Sole traders and one-person Ltds

Price: £14.50/mo (free with Mettle/NatWest/RBS)

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What's great

UK-first: handles Self Assessment, VAT, Corporation Tax filings end-to-end
Free if you bank with Mettle, NatWest or RBS — a no-brainer
Excellent dividend, payroll and timesheet handling for limited companies
Genuinely human support — UK-based phone and email

Watch-outs

Pricier than free alternatives if you don't qualify for the bank perk
Multi-currency is basic — not ideal for international ecom

Xero

The best if you'll one day hire an accountant.

Best for: Growing Ltds, businesses with stock or staff

Price: From £16/mo (often introductory pricing — full price ~£33)

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What's great

Industry standard — every UK accountant knows it cold
Excellent app ecosystem (Hubdoc, A2X, Dext, etc.)
Strong multi-currency, payroll add-on, stock module

Watch-outs

Introductory pricing jumps significantly after the first year
Payroll is an extra £6/mo per 5 employees
Self Assessment for sole traders isn't included — you need separate software

QuickBooks Online

Solid, well-priced, and the one most US-led businesses default to.

Best for: Sole traders with steady volume, ecommerce

Price: From £12/mo Simple Start (full price)

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What's great

MTD-ready for both VAT and Income Tax SA
Self-employed plan handles mileage tracking via the app
Frequent 50–90% off promos on the first year

Watch-outs

UK product feels secondary to the US one — minor terminology mismatches
Customer service is mostly outsourced

Sage Accounting

The incumbent — feels more 'finance department' than 'side hustle'.

Best for: Established Ltds with bookkeepers

Price: From £15/mo

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What's great

Excellent for cashflow forecasting and projections
Long-standing reputation, lots of accountants use it
Strong reporting suite

Watch-outs

UI feels dated next to Xero or FreeAgent
Smaller third-party app ecosystem
Customer service variable

Crunch

Hybrid software + included accountant — for people who don't want to learn accounting at all.

Best for: Founders who'd rather pay than learn

Price: £24.50/mo (free) to £159.50/mo (full service)

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What's great

You get a human accountant included, not just software
Full service tier handles your whole Ltd return and Self Assessment
Free tier is genuinely free, with paid upgrade only when needed

Watch-outs

More expensive than DIY at any usage level
You're locked into their software

Side-by-side

Compare at a glance

Software	From	Self-employed	Limited company	MTD Income Tax	Free option
FreeAgent	£14.50/mo	Yes	Yes	Yes	Free with Mettle/NatWest
Xero	£16/mo	Limited (no SA)	Yes	Yes (SA add-on)	No
QuickBooks	£12/mo	Yes	Yes	Yes	No
Sage	£15/mo	Limited	Yes	Yes	No
Crunch	£24.50/mo	Yes	Yes	Yes	Yes (basic)

The verdict

Bank with Mettle, NatWest or RBS? FreeAgent, free, end of debate.

Planning to hire an accountant? Xero — they all use it.

Want to never touch accounting? Crunch's full-service tier.

If you can't decide, FreeAgent's 30-day trial is the lowest-friction way to find out if it fits your brain.