- Tax software for self employed at a glance
- Eleven tax options for self-employed people
- The quarterly rule that surprises new freelancers
- Do it yourself, or get help?
- Getting ready to file
- Features that help the self-employed
- Making Tax Digital in the UK
- Keep records long enough
- My plain advice on tax software for the self-employed
- Frequently asked questions
The best tax software for self employed people helps you record business income and expenses, work out what you owe and file your return without missing deductions or deadlines. Some options are free online filers, some add accountant support and some cover the UK's Self Assessment. Eleven options follow in no particular order.
Working for yourself means doing your own tax, and it's rarely as simple as an employee's return. You've got business income, expenses, possibly several clients and, in the US, payments to make through the year.
The eleven options below are listed alphabetically and in no particular order, covering both US filers and UK Self Assessment. Each description comes from the provider's own site, read this week. If you're just starting out, my guide to freelancing for beginners covers the basics around it.
Tax software for self employed at a glance
In the free plan column, Yes means the tool's own site describes free use or a free plan, Trial only means a time-limited trial and No means neither is stated on the pages we read. For US options, free usually refers to the federal return; check state returns separately.
| Tool | Type | Good for | Free plan |
|---|---|---|---|
| Cash App Taxes | Online tax filing | Free online filing | Yes |
| Coconut | Accounting and tax app | UK sole traders and Making Tax Digital | Yes |
| FlyFin | AI tax service | AI tax help with CPA access | No |
| FreeTaxUSA | Online tax filing | Free federal returns | Yes |
| GoSimpleTax | Self Assessment software | UK Self Assessment without jargon | No |
| Jackson Hewitt | Tax preparation service | Help from a tax preparer | No |
| Keeper | Tax filing and expense tracking | Contractors with complex returns | Not stated |
| OLT.com | Online tax filing | No-frills federal filing | Yes |
| TaxAct | Online tax filing | Guided filing with upgrades | Yes |
| Taxfix | Accountant-backed tax service | Having an accountant check the return | Trial only |
| TaxSlayer | Online tax filing | Self-employed returns online | Yes |
Eleven tax options for self-employed people
Cash App Taxes
Best for: Self-employed Americans with straightforward returns who want simple online filing that describes itself as free.
Coconut
Best for: UK sole traders and landlords who want bookkeeping and Making Tax Digital for Income Tax in one app.
FlyFin
Best for: Freelancers in the US who want an AI tax service with the option to consult a CPA about their taxes.
FreeTaxUSA
Best for: US self-employed filers who want a free federal return and are comfortable entering their own business income.
GoSimpleTax
Best for: Freelancers and sole traders in the UK who want to complete and submit Self Assessment without accountancy jargon.
Jackson Hewitt
Best for: People working for themselves in the US who'd rather have a tax preparer do the return than file it themselves.
Keeper
Best for: Contractors, freelancers and solo business owners in the US with more complex returns who want guided help to file with confidence.
OLT.com
Best for: Confident filers who want a no-frills, IRS-authorised e-file service and know their way around the forms.
TaxAct
Best for: American freelancers who want guided online filing and the option to add support for more complex returns.
Taxfix
Best for: Self-employed Brits who want software plus accountant support to sort their Self Assessment for them.
TaxSlayer
Best for: US self-employed filers who want to e-file federal and state returns online at their own pace.
The quarterly rule that surprises new freelancers
Here's the part that catches many first-year freelancers in the US. The IRS says self-employed people are generally required to file an annual return and pay estimated taxes quarterly, and generally must pay self-employment tax as well as income tax.
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Pick software that helps through the year, not just in filing season, so quarterly estimated payments don't catch you out. Put the quarterly dates in your calendar as soon as you start working for yourself.
Do it yourself, or get help?
Do-it-yourself filing suits people with simple returns who are comfortable entering their own numbers. Tools with accountant or tax expert support suit people with several income streams, big expenses or anything unusual. Full preparation services suit people who'd rather hand it over completely.
Be honest about how confident you feel. Getting help is far less stressful than fixing a wrong return later, especially in your first year.
Getting ready to file
- Keep business and personal spending in separate accounts.
- Record income and expenses through the year, not at the end.
- Save receipts for every business expense you plan to claim.
- Check the forms you'll need from clients and platforms.
- Set aside part of every payment for tax.
- File early so you have time to fix any problems.
Features that help the self-employed
- Expense tracking. Record expenses as they happen.
- Income from several clients. Keep every source together.
- Quarterly reminders. Prompts before payment deadlines.
- Expert help. Someone to ask when a question comes up.
Making Tax Digital in the UK
If Making Tax Digital for Income Tax applies to you, you'll need compatible software that keeps digital records and sends updates to HMRC. If you're in the UK, check each tool's Making Tax Digital support and HMRC's own guidance before you commit.
Keep records long enough
Tax authorities can ask questions about past returns, so keep your records, receipts and filed returns safely stored. Digital copies in a clearly named folder are far easier to find than a shoebox of paper.
Do you make tax software for self employed people? Tool makers can ask to be considered for a featured place on this list.
My plain advice on tax software for the self-employed
Record as you go. The software you file with matters far less than the records you keep through the year. If your income and expenses are already organised, almost any tool on this list will get you through filing quickly.
Check what free really covers. Several US tools describe free federal filing, but state returns and extra support can be separate. In the UK, check that your tool can submit Self Assessment directly to HMRC. If you're applying for a mortgage too, read my piece on getting a mortgage when you're self-employed.
Frequently asked questions
What is the best tax software for self employed people?
It depends on your country and how complex your return is. Simple returns suit free online filers, while complex ones suit tools with expert help.
Is there free tax software for self employed people?
Yes. Several US tools on this list describe free federal filing, and some UK tools describe free features. Check the table.
Do self-employed people pay tax quarterly in the US?
The IRS says self-employed people are generally required to pay estimated taxes quarterly and file an annual return.
What is self-employment tax?
The IRS says it's Social Security and Medicare tax, mainly for people who work for themselves, owed as well as income tax.
Is there tax software for UK Self Assessment?
Yes. Several options on this list are built for UK Self Assessment and Making Tax Digital.
Should I use an accountant instead?
If your return is complex or you're unsure, an accountant or a tool with accountant support can be worth it.
