- Sole trader accounts tools at a glance
- Ten accounting options for UK sole traders
- Software you run, a bank that does it, or someone who does it for you
- Making Tax Digital, in the providers' own words
- What a sole trader needs from accounts software
- Six questions for any sole trader accounts app
- My advice for sole traders choosing accounts software
- Frequently asked questions
The best sole trader accounting software depends on how much of the job you want to hand over. Some options are bookkeeping apps you run yourself, some put the accounting inside a business bank account, one runs your tax for you and one is an online accountancy service. Ten UK options follow, in no particular order.
Going self-employed in the UK means keeping records of what comes in and goes out, and sending HMRC what it asks for. There's more choice on the software side than most new sole traders expect, and some of it isn't software in the usual sense at all.
Each description below comes from the provider's own website, read as of Nov 2026, and the list is alphabetical, in no particular order. It's a guide to what each one is, not tax advice, so check anything about deadlines or rules with HMRC or an accountant.
Sole trader accounts tools at a glance
| Tool | Type | Good for |
|---|---|---|
| Clear Books | UK accounting software | A free MTD plan for sole traders |
| Crunch | Online accountancy service | An accountant with software alongside |
| FreeAgent | Online accounting software | Invoices, expenses and tax in one place |
| GoSimpleTax | Self Assessment software | Filing a Self Assessment return |
| Hnry | Tax automation and accounting service | Handing the tax side over entirely |
| Mettle | Business bank account | Accounting tools inside a business account |
| Pandle | Bookkeeping software | Free accounting with live chat help |
| Starling Accounting | Bookkeeping inside a business account | Banking, bookkeeping and tax in one app |
| Xero | Accounting software | A self-employed option from a full platform |
| Zoho Books | Accounting software | A free plan for sole traders and landlords |
Ten accounting options for UK sole traders
Clear Books
Best for: Sole traders after UK-built accounting software with a free Making Tax Digital plan, plus invoicing, VAT and reporting as the business grows.
Crunch
Best for: Anyone who'd like accountants to handle Self Assessment filing and bookkeeping, with invoicing and expense software alongside; it's a service, not only an app.
FreeAgent
Best for: Freelancers wanting invoicing, expense management, project management and tax in one online package.
GoSimpleTax
Best for: Self Assessment filers who want a real-time view of income and expenses and software that simplifies the tax return.
Hnry
Best for: Sole traders who'd rather not deal with tax at all, since it files your Self Assessment for you and offers a business card that logs expenses.
Mettle
Best for: Self-employed people who'd like a business bank account, backed by NatWest, with tax calculation and Making Tax Digital help in its menu.
Pandle
Best for: Getting started with free accounting software that's HMRC recognised, with live chat support from real bookkeepers.
Starling Accounting
Best for: Starling business customers who want banking, bookkeeping and tax in the same account, with a profit and loss report labelled for sole traders.
Xero
Best for: Self-employed users who'd like a dedicated self-employed option from a full accounting platform, with help getting ready for MTD for Income Tax.
Zoho Books
Best for: Landlords and sole traders looking for a free plan that records income, reconciles bank statements, scans receipts and files Self Assessment.
Software you run, a bank that does it, or someone who does it for you
Read the provider pages side by side and four kinds of tool appear. Most are bookkeeping software you run yourself. FreeAgent's page says its software is 'made specifically for freelancers, small business owners and their accountants', Xero's menu has a self-employed section, Pandle lists 'Sole Traders' and 'Self-Employed' among who it serves, Zoho Books advertises 'Free MTD-ready accounting for self-employed businesses', and Clear Books runs a 'Free MTD plan for sole traders'. GoSimpleTax lists 'Self Employed' and 'Sole Traders' among the people who use it. FreeAgent is only one bookkeeping app among several, so FreeAgent alternatives help narrow the choice.
Two put the accounting inside a business bank account. Mettle calls itself 'The bank account for the self-employed', and Starling Accounting labels its profit and loss report 'Sole trader'.
Then there's the hand-it-over end. Hnry describes itself as 'an all-in-one tax automation and accounting service, just for sole traders', and Crunch is an online accountancy that sorts clients into 'Sole Trader' and 'Limited Company'.
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That's the split most new sole traders don't see coming: one service runs the tax side for you, two bank accounts put the accounting where your money already sits, one is an accountancy rather than an app, and the rest are bookkeeping software you run yourself.
Making Tax Digital, in the providers' own words
Making Tax Digital for Income Tax is the reason many sole traders are looking at software right now. The same bank's page puts it plainly: 'qualifying sole traders and landlords will be automatically signed up for Making Tax Digital for Income Tax'. That's the bank's wording, not HMRC's, so check whether and when it applies to you on GOV.UK or with an accountant.
Several of the software providers here describe themselves as MTD-ready or HMRC recognised on their pages. That's useful, but it isn't the same as the software suiting how you work, so try the day-to-day bits, invoices and expenses, before you worry about quarterly updates.
What a sole trader needs from accounts software
- Invoices that look professional. Most packages create and send invoices; check you can add your own logo and payment details. My guide to invoicing correctly as a sole trader covers what to include.
- Bank feeds. Connecting your business account saves typing in every transaction by hand.
- Receipt capture. Snapping receipts on your phone beats a shoebox of paper at year end.
- Self Assessment support. Some tools file the return for you, while others prepare it for you to submit yourself.
- Room to grow. If you might become a limited company later, check whether the same tool handles that too.
Six questions for any sole trader accounts app
- Do I want to do my own bookkeeping, or hand it over?
- Do I want my accounts inside my business bank account?
- Does it support Making Tax Digital for Income Tax?
- Can it file my Self Assessment, or only prepare it?
- Does it work on my phone as well as my computer?
- Can I export my records if I leave?
Do you make accounting software for sole traders? Tool makers can ask to be considered for a featured place on this list.
My advice for sole traders choosing accounts software
Be honest about how much of this you want to do. If you're happy keeping your own books, start with one of the free plans and see whether you'll use it every week. If you'd rather the bank did most of it, an account with accounting built in is the least effort. And if tax makes you want to hide under the desk, a service that files for you, or an online accountant, is worth more than any feature list. Whichever route you take, get your records in order before the first deadline, not the week of it.
Still deciding how to set up? My guide to sole trader vs limited company sets out the differences.
Want your tool on this list? Featured spots and reviews here are paid partnerships. Here's how to partner with me.
Frequently asked questions
What is the best accounting software for a sole trader?
It depends on how hands-on you want to be. Bookkeeping apps suit sole traders who like keeping their own records, bank accounts with accounting built in suit people who want less admin, and tax services suit people who'd rather hand it over.
Is there free accounting software for sole traders?
Yes. Several providers here name a free plan for sole traders or the self-employed on their own pages, as of Nov 2026. Check what the free plan includes before you rely on it.
Can my bank account do my bookkeeping?
Some business bank accounts now include bookkeeping and tax tools, so your transactions are already in the right place. Check which features come with the account you choose.
What's the difference between accounting software and an online accountant?
Software helps you keep your own records and file returns yourself. An online accountant is a service, often with software included, where qualified people do some or all of the work for you.
Is accounting software the same as tax return software?
Not always. Some tools here focus on filing the Self Assessment return, while full accounting packages also handle invoices, expenses and bank feeds through the year.
Can I switch accounting software later?
Usually, yes. Most providers let you export your records, and some publish guides to switching. Export a full backup before you leave any service.
