Best Self-Employed Accounting Software in the UK

Keeping on top of your books can be especially challenging when you’re self-employed given how many plates you have to spin at the same time.

That makes the accounting software you use paramount to staying on top of invoices, expenses, tax records and the like. But which one could be best for you?

To help you make an informed decision, we've compared self-employed accounting software in the UK, including QuickBooks, Xero, FreeAgent and FreshBooks, with a look at invoicing, expenses, Making Tax Digital support and business account integrations.

We've also explained how Wise Business can support self-employed people who use selected cloud accounting software solutions and need to get paid by clients overseas.

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*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

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⚠️ Note: This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited, its subsidiaries or affiliates. It should not be treated as advice from, or a communication with, HMRC, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

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Key takeaways

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QuickBooks

QuickBooks can be an option for sole traders and small businesses that want tax, invoicing and reporting tools in one place.

Depending on the plan you pick, you may be able to manage income and expenses, create invoices and payments, prepare for Self Assessment and connect automated bank feeds.²

You can also sync Wise Business with QuickBooks, which may be useful if you receive money in different currencies and want to make reconciliations easier.

Depending on the plan, Quickbooks features can include:

• Income and expense tracking
• Invoices and payments
• Prepare for Self Assessment
• Receipt capture
• Reports
• VAT tools on eligible plans
• Optional payroll add-on

QuickBooks may suit sole traders and small businesses that want a well-known accounting platform with a range of plan levels.

Xero

Xero currently has several UK pricing plans, including Simple, Ignite, Grow and Comprehensive.³ You can use Xero to create invoices, and also sync with Xero for easier reconciliations across currencies.

Depending on the plan, Xero features can include:

• Invoices and quotes
• Bills and expenses
• Bank reconciliation
• VAT returns
• Reporting
• Payroll, projects or expense tools on selected plans or add-ons

Xero may suit self-employed people who expect their business to grow and want a broad app ecosystem.

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FreeAgent

FreeAgent can be an option for UK freelancers, contractors and sole traders who want accounting software with tax-related features.

FreeAgent currently offers billed monthly and billed annually pricing, with a 30-day free trial and no contract or setup fees.⁴ Fee structures and available features can vary depending on the type of account you pick.

FreeAgent currently includes Sales Tax Reporting & Multi-Currency invoicing in its pricing page, and optional add-ons can be added from within your FreeAgent account and may be chargeable.⁴

If you have a business account or a Wise Business account, you can sync with FreeAgent.

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

Depending on the plan, FreeAgent features can include:

• Sales Tax Reporting & Multi-Currency invoicing
• Smart Capture Unlimited add-on
• No contract or setup fees
• UK-based support
• 30-day free trial
• Optional add-ons

FreeAgent may suit self-employed people who want UK-focused tax features and a straightforward dashboard.

FreshBooks

FreshBooks can suit service-based freelancers who want a user-friendly tool focused on invoicing, expenses and client management.⁵ For ease of reconciliation, you can link FreshBooks with your business account, including using sync with FreshBooks for cross-currency reconciliations.

Depending on the plan, FreshBooks features can include:

• Invoicing
• Quotes and proposals
• Expenses
• Time tracking
• Client management
• Reporting
• Payment features
• Additional users on selected plans or add-ons

FreshBooks may suit service-based freelancers who want a user-friendly invoicing and client management tool.

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

Manage international business payments alongside your accounting software with Wise

For UK self-employed people with customers, suppliers or contractors overseas, international payments can add extra admin, currency conversion and reconciliation steps.

This is where Wise Business can help, as it connects with accounting software such as QuickBooks, Xero, FreeAgent and FreshBooks.

But that's not all. With Wise Business, you can:

• 🌍 Send money to 140+ countries at the mid-market exchange rate with low, transparent fees and no sneaky exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Visit https://wise.com/gb/interest/ to find out more)
• 🔗 Create payment links and QR codes to get paid easily
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for all your domestic and global needs.

Be Smart, Get Wise.

Register for Wise Business ✍️

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

FAQs

Do self-employed people need accounting software?

Self-employed people are not legally required to use accounting software, but it can reduce manual admin, help with invoices and expenses, VAT and Self Assessment, and reduce the risk of errors.

Dedicated accounting software can help, depending on your needs and provider. You could get support with VAT, Self Assessment, income tax, stock management, reporting, invoicing, receipt capture and more.

Why is Making Tax Digital important for self-employed accounting software?

Accounting software is becoming even more important because of Making Tax Digital for Income Tax. HMRC currently says Making Tax Digital for Income Tax will become mandatory in phases, starting from 6 April 2026.¹

If your qualifying income is more than £50,000 for the 2024 to 2025 tax year, you will need to use it from 6 April 2026

If your qualifying income is more than £30,000 for the 2025 to 2026 tax year, you will need to use it from 6 April 2027

If your qualifying income is more than £20,000 for the 2026 to 2027 tax year, you will need to use it from 6 April 2028.¹

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited, its subsidiaries or affiliates. It should not be treated as advice from, or a communication with, HMRC, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

What should self-employed people look for in accounting software?

You might want support with invoicing and quotes, paying bills, reconciling incoming payments and expenses, VAT, project and time tracking, or payroll if you’re employing others.

When comparing accounting software, self-employed people should consider the following features and services:

• Features and services
• Fees: monthly fee and add-ons
• Making Tax Digital support
• Integration with a business account
• Suitability for international payments

What software do I need for Making Tax Digital?

To use Making Tax Digital for Income Tax, HMRC currently says you’ll need to find software that creates digital records, sends HMRC quarterly updates and can submit your tax return.⁶

HMRC currently provides a tool to find software that works with Making Tax Digital for Income Tax.⁶ Before choosing accounting software, check whether it supports the income sources and submissions you need.

You may want to ask:

• Is it compatible with Making Tax Digital for Income Tax?
• Does it support Self Assessment?
• Can it handle VAT if you’re VAT-registered?
• Does it connect to your business account?
• Does it support invoices, expenses and receipt capture?
• Can your accountant access it?
• Does it work for your business type — sole trader, partnership or limited company?

Do I need an accountant if I use accounting software?

Accounting software can help with managing your business finances, tax and other administration, but whether you can go without an accountant depends on the complexity of your finances and your comfort with bookkeeping.

Get professional advice if you're ever unsure about how to manage your company's money or tax obligations.

Can I use Excel for bookkeeping as self-employed?

You can manage your self-employed bookkeeping in whichever way you feel is best, as long as you comply with all relevant reporting and tax rules. However, if Making Tax Digital for Income Tax applies to you, you’ll need to use software that creates digital records, sends HMRC quarterly updates and can submit your tax return.⁶

Some people use bridging software with spreadsheets, while others prefer full accounting software.

What's the easiest accounting software for the self-employed?

There’s no single easiest accounting software for everyone. Different services have their own features which can suit different business needs. Getting a product that reconciles with your business account and has an intuitive interface is important.

Many providers offer free trials or introductory discounts, so it can be worth testing a few options before committing.

What is the best free accounting software for self-employed people?

Some providers offer free plans, free trials or free access through partner banks. However, free plans often have limits on features, invoices, users or MTD support. Always check whether the software supports the tax and reporting features you need before relying on it.

Sources:

1. Find out if and when you need to use Making Tax Digital for Income Tax - GOV.UK
2. QuickBooks Pricing | QuickBooks UK
3. Pricing Plans | Xero UK
4. Simple pricing plans made for every small business - FreeAgent
5. Pricing - FreshBooks
6. Find software that works with Making Tax Digital for Income Tax - GOV.UK

Sources last checked on 26 May 2026