FreeAgent
- Sole trader plan: £19 a month + VAT (£22.80 if you pay the VAT too). 50% off for your first 6 months.
- Free for as long as you keep a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or a Mettle account with at least one transaction a month. Optional add-ons may cost extra.
- Reads 10 receipts and bills a month as standard; unlimited is a £5 + VAT monthly add-on.
- On HMRC’s list twice: the paid version and the free bank version.
Verdict: If you already bank with NatWest, RBS, Ulster Bank or Mettle, start here: full accounting software for nothing. At full price it’s one of the dearer options for a simple sole trader.
On HMRC’s list as “FreeAgent” and “FreeAgent for free with Mettle, NatWest & RBS”. Price as of 21 October 2026, from FreeAgent’s own pricing page.
Xero
- Ignite plan: £18 a month excluding VAT (£1.80 a month for the first 6 months on the current offer).
- Ignite is marked “MTD for Income Tax ready”, but limits you to 20 invoices and 10 bills. The next plan up, Grow, is £39 a month excluding VAT.
- Payroll is £1.50 per person on Ignite.
Verdict: More than most sole traders need on day one, but a good choice if you expect to grow, register for VAT or hire. Watch the 20-invoice and 10-bill limits on the Ignite plan.
On HMRC’s list as “Xero”. Price as of 21 October 2026, from Xero’s own pricing page.
QuickBooks
- Sole Trader Plus: £10 a month (£1 a month for the first 6 months on the current offer), or a 30-day free trial instead.
- Marked “MTD for Income Tax ready”, with automated bank feeds, CIS calculations and Self Assessment preparation.
- The pricing page as we read it did not say whether the £10 includes VAT.
Verdict: Good value for a big-name paid package at £10 a month.
On HMRC’s list as “QuickBooks (Intuit)”. Price as of 21 October 2026, from QuickBooks’s own pricing page.
Sage Sole Trader
- Sole Trader Free: £0, for sole traders who aren’t VAT-registered. One user, one connected bank account, 25 auto-categorised transactions and 5 sales invoices a month. Marked “Making Tax Digital ready”.
- Sole Trader: £7 a month excluding VAT (£0.70 a month for the first 6 months on the current offer).
- On HMRC’s list as both a free and a paid product.
Verdict: A sensible free start for a simple sole trader who isn’t VAT-registered. 25 auto-categorised transactions a month is tight if you’re busy, so expect to move to the £7 plan.
On HMRC’s list as “Sage Sole Trader & Landlord Free” and “Sage Sole Trader & Landlord”. Price as of 21 October 2026, from Sage Sole Trader’s own pricing page.
Coconut
- MTD filing plan: £21.99 monthly, or £129.99 a year. Includes quarterly updates and the year-end submission.
- The cheaper Bookkeeping plan (£99.99 a year) does not include MTD quarterly updates. A Bridging plan for spreadsheet users is £49.99 a year, plus £49.99 for the year-end submission.
- Up to 24 months free if you open a new Zempler business bank account through the app, subject to eligibility.
Verdict: Built only for sole traders and landlords, so there’s less to learn. Not the cheapest; if you choose it, the yearly plan saves over £100.
On HMRC’s list as “Coconut” and “Coconut Free”. Price as of 21 October 2026, from Coconut’s own pricing page.
Pandle
- Pandle Free: £0, with MTD Income Tax submissions, VAT submissions, quotes and invoices, and no usage limits.
- Pandle Pro: £5 a month + VAT. Adds bank feeds, receipt uploads, cash flow forecasting and live chat support. 14-day free trial, no card needed.
Verdict: One of the strongest truly free options: MTD is in the free plan with no usage limits. The £5 Pro plan is worth it if typing in transactions puts you off.
On HMRC’s list as “Pandle” (free version). Price as of 21 October 2026, from Pandle’s own pricing page.
Clear Books
- MTD Free: £0 for good. Records income and expenses, sends quarterly updates to HMRC, includes CIS, with no transaction limits.
- Paid plans start at £5 a month if you need VAT filing or payroll.
Verdict: Free, simple and with no trial timer. A good fit if you want MTD done at no cost and don’t need VAT.
On HMRC’s list as “Clear Books Free” and “Clear Books”. Price as of 21 October 2026, from Clear Books’s own pricing page.