Accountancy software: The Best Low-Cost or Free Options (with conditions)
I previously authored an article about Making Life Easier and the Looming MTD Launch… this follows on from that by providing you with a brief on the most suitable accounting software options based on simplicity, cost, and HMRC compliance for low volume transactions, sole traders and freelancers.
Zoho Books (Free Plan)
- Why: Free, with limits. Check those limits before signing up.
- Features: Invoicing, expense tracking, bank feeds, and Making Tax Digital (MTD) compliance for VAT.
- Ideal for: Sole traders and freelancers
- Cost: Free (or paid plans from ~£10/month).
- https://www.zoho.com/uk/books/free-accounting-software/
FreeAgent
- Why: Designed for UK freelancers and sole traders.
- Features: Invoicing and quotes, expense tracking, bank reconciliation, MTD compliant VAT filing, Self-Assessment preparation
- Access: 1 user and 1 accountant access
- Specific packages: Ltd company, Partnership or LLP, Sole Trader, Landlord
- Bonus: Free if you bank with NatWest, RBS, Ulster Bank, or Mettle.
- Cost: Free with those banks, otherwise month fees apply.
- https://www.freeagent.com/pricing/?tab=tab%3Alimited-company
QuickFile
- Why: Free for up to 500 transaction per year (perfect for 3 sales/month).
- Features: Invoicing, bank feeds (extra cost), VAT filing.
- Cost: Free basic plan; optional paid features.
- https://www.quickfile.co.uk/home/pricing
Summary
Paid but Affordable
- QuickBooks for Self-Employed: Sole Trader or Simple Start, with fees starting at around £10 and £16 (plus VAT) /month respectively check for discounts or contact your accountant.
- great for mileage tracking and HMRC submissions.
Recommendation if your turnover is under £35k:
- Zoho Books (Free) if your turnover is under £35k.
- FreeAgent if you already bank with NatWest/RBS/Mettle (zero cost).
- If you want the simplest option and aren’t VAT registered: speak to us about QuickBooks Ledger.
However, if you are VAT registered and meet the MTD threshold:
- FreeAgent, Xero, QuickBooks Online, Sage
Feel free to speak with us about these options and alternatives, as we can assess your needs and point you in the right direction. Low-Transaction Businesses, for example, seasonal services, rental properties, or small entities with infrequent activity might be better off with QuickBooks Ledger, which would be managed by ourselves.
