Honest comparisons with real GBP pricing. We only list tools that are HMRC-recognised or genuinely useful for UK Self Assessment.
April 2026 · 7 min read · Verified by Self Employed Tools
There are hundreds of accounting tools. Most of them were designed for US businesses and retrofitted for the UK. Here's what actually matters for a UK sole trader:
FreeAgent was built in Edinburgh specifically for UK small businesses and sole traders. It handles year-round bookkeeping, invoicing, VAT returns, Self Assessment, and payroll in one place. The killer feature: it's completely free if you have a NatWest, RBS, or Ulster Bank business account.
What it does well
Limitations
If you don't need year-round bookkeeping software and just want to file your Self Assessment easily and cheaply, GoSimpleTax is hard to beat. You pay £29.99 per tax year — not a monthly subscription. Enter your income and expenses, it calculates your bill, you submit directly to HMRC.
What it does well
Limitations
Xero is the market leader for a reason. Excellent bank feeds, strong accountant ecosystem, and very polished mobile apps. It's more than most sole traders need, but if you're growing, have an accountant, or deal with VAT, Xero is worth the premium.
What it does well
Limitations
QuickBooks Self-Employed is designed for people who just want to track income, mileage, and expenses without complexity. From £10/mo, it categorises transactions automatically and lets you file directly with HMRC.
AI assistants like Claude Pro and ChatGPT Plus are increasingly useful for self-employed tax admin — but not as replacements for accounting software. Here's how they genuinely help:
They cannot submit to HMRC, handle bank feeds, or file your tax return. Use them alongside, not instead of, dedicated accounting software.
| Tool | HMRC | Self Assessment | Price/mo | Best for |
|---|---|---|---|---|
| FreeAgent | ✓ | ✓ | £0–£19 | NatWest/RBS users |
| GoSimpleTax | ✓ | ✓ | £2.50* | Tax filing only |
| Xero | ✓ | ✓ | £16+ | Growing businesses |
| QuickBooks SE | ✓ | ✓ | £10+ | Simplicity seekers |
*GoSimpleTax is £29.99/year = ~£2.50/mo equivalent
Detailed side-by-side review of every UK accounting tool, with pricing, MTD status, and honest pros and cons.
Best Accounting Software for Sole Traders →