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Clear Books Review: Free MTD Plans, Paid Tiers and Add-ons

Clear Books is UK cloud accounting for sole traders, landlords and small limited companies, with free Making Tax Digital plans and UK support included. The catch is finding your row: as of Oct 2026, VAT submissions start on Sole Trader Plus or Medium, CIS reporting starts on Medium, and payroll is a separate add-on rather than part of any plan.

Clear Books sells a different plan to each kind of user, and its pricing page has tabs for sole traders, landlords, foreign property and all organisations. I read Clear Books' own pricing page across those tabs, so here's what each plan includes and the point where you'd need to move up.

Clear Books plans for sole traders and landlords

PlanPounds a month, plus VAT, billed monthlyWhat's includedThe limit
Sole Trader FreeNothing (forever free)HMRC-recognised MTD Income Tax quarterly updates, income and expense records, basic reports, works for CIS subcontractors, no transaction limits, invite your accountantSelf-service, with no bank feeds or invoicing
Sole Trader5Everything in the free plan plus bill and receipt scanning, bank feeds, invoices, business reporting, unlimited users, accountant tools, email supportNo VAT reporting
Sole Trader Plus15Everything in Sole Trader plus MTD VAT reporting, flat-rate scheme VAT, domestic reverse charge, phone and email supportBuilt for VAT-registered sole traders
Property Free / PropertyNothing / 5MTD-ready bookkeeping for landlords; Property Free covers MTD filings end to end for one propertyFree version is pitched at a single property
Foreign Property Free / Foreign PropertyNothing / 5Foreign Property Free covers MTD filings end to end for one overseas propertyFree version is pitched at a single overseas property

Small, Medium and Large for companies

PlanBilled monthly / yearly / every two years (pounds a month, plus VAT)What's includedWhere it stops
Small16.00 / 14.40 / 12.80Bank feed with automated matching, sales and purchase tracking, invoicing, full reporting suite, integrations and API, journals, dividends tool, user permissions, phone and email supportNo MTD VAT submissions or CIS
Medium34.00 / 30.60 / 27.20Everything in Small plus MTD VAT submissions, purchase orders, CIS reporting and submissionsNo project accounting or multi-currency
Large44.00 / 39.60 / 35.20Everything in Medium plus project accounting, multi-currency, employee expense claims and approval, fixed assetsPayroll is still an add-on

Prices as of Oct 2026, in pounds plus VAT. Billed yearly is labelled save 10% and billed every two years save 20%. Check the vendor's pricing page before you buy.

The Clear Books catch: VAT and CIS sit on different rungs

Clear Books is open about its prices, but the features most UK small businesses file with sit on specific plans, and it's easy to pick the wrong one. A VAT-registered sole trader on the 5 pound Sole Trader plan won't find VAT reporting there; MTD VAT reporting, the flat-rate scheme and domestic reverse charge start on Sole Trader Plus at 15 pounds a month plus VAT.

Limited companies hit the same step. Small, at 16 pounds a month plus VAT billed monthly, has bank feeds, invoicing, reporting and a dividends tool, but MTD VAT submissions and CIS reporting and submissions for construction start on Medium at 34. Construction is where this bites: the free sole trader plan works for CIS subcontractors, but a company that runs CIS reporting needs Medium from the start.

Then there are the bolt-ons. Payroll, with RTI submissions to HMRC and its own 30-day free trial, and Instant Bank Payments through open banking are separate add-ons, not part of any plan, and the page says they're billed separately. The page also shows an offer of 50% off your first 3 months on new monthly, yearly or two-year subscriptions, applied at checkout when bought within 30 days of registration.

What Clear Books handles

On the free plans, you record income and expenses, send HMRC-recognised MTD Income Tax quarterly updates, see basic reports and invite your accountant, with no transaction limits. The paid sole trader plan adds bill and receipt scanning from photos and PDFs, automated transaction recording from bank feeds, invoice creation and email, business reporting including a balance sheet, unlimited users, and accountant tools such as journals, lock date ranges and an audit log.

For companies, Small brings automated bank matching, a full reporting suite, integrations and an API, a dividends tool and user permissions. Medium adds purchase orders alongside VAT and CIS. Large adds project accounting, multi-currency, employee expense claims with approval, and fixed assets. Across the range there are no setup fees, you can cancel anytime, and there's a free 30-day trial.

If you're moving from spreadsheets, check you know what a correct sole trader invoice needs before you set up your templates.

Right for you, or not: Clear Books

  • UK sole traders who want MTD-ready digital records at no charge on the free plan.
  • Landlords with one property, since Property Free covers MTD filings end to end.
  • Small limited companies, VAT-registered firms and construction businesses that want VAT or CIS submissions inside their bookkeeping software.

I'd look elsewhere if you're one of these:

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  • VAT-registered sole traders who want to stay on the 5 pound plan.
  • Construction companies that need CIS reporting but want to stay on Small.
  • Anyone who wants payroll included rather than paid for as an add-on.

If you're between business structures, read up on whether to stay a sole trader or form a limited company first, because Clear Books puts the two on different plans.

Clear Books advice: which row to start on

I'd start on the free plan if you're a sole trader who only needs MTD Income Tax quarterly updates, because it's free forever and you can invite your accountant. If you're VAT-registered, go straight to Sole Trader Plus. If you're a limited company filing VAT or CIS, skip Small and trial Medium. I'd skip Clear Books if you want payroll bundled into the plan, or if you don't want to think about which tier your business sits on. This is a read of the pricing page, not tax advice.

Make a tool like this? Featured spots and reviews here are paid partnerships. Here's how to partner with me.

Frequently asked questions

Is Clear Books free?

There's a free plan. Sole Trader Free and Property Free are forever free, MTD-ready plans. Paid plans start at 5 pounds a month plus VAT, as of Oct 2026.

Which Clear Books plan submits VAT?

Sole Trader Plus for VAT-registered sole traders, and Medium or Large for companies. MTD VAT isn't on Sole Trader or Small.

Does Clear Books include payroll?

No. Payroll is a bolt-on, with RTI submissions to HMRC and a 30-day free trial of its own.

Is there a free trial of Clear Books?

Yes. The page says there's a free 30-day trial, with no setup fees, and you can cancel anytime.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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