Question 1

What is MTD (Making Tax Digital) compliance?

Accepted Answer

Making Tax Digital (MTD) is a UK government initiative requiring businesses to keep digital records and submit VAT returns using compatible software. All VAT-registered businesses must use MTD-compatible software. We clearly mark which platforms are MTD compliant in our comparison.

Question 2

How do I choose the right accounting software for my business?

Accepted Answer

Consider your business size, whether you need payroll, expense management, or inventory features. For UK businesses, MTD compliance is essential. Use our filters to narrow down options by the features you need, then compare pricing to find the best value.

Question 3

Are the deals and discounts on this site current?

Accepted Answer

We update our deals regularly, but promotions can change. Always verify the current offer on the software provider's website before purchasing. Deals marked with a ribbon are the most recently confirmed offers.

Question 4

Do you earn commission from the links on this site?

Accepted Answer

Yes — this site uses affiliate links. When you click a 'Get Deal' button and make a purchase, we may earn a commission at no extra cost to you. This helps us maintain and update the comparison data. Our ratings and reviews are independent and not influenced by affiliate relationships.

Question 5

What is the difference between cloud and desktop accounting software?

Accepted Answer

Cloud accounting software runs in your browser and stores data online, allowing access from anywhere. Desktop software (like Sage 50) installs on your computer and may offer more power but less flexibility. Most modern businesses prefer cloud-based solutions for their accessibility and automatic updates.

Question 6

Is free accounting software good enough for my business?

Accepted Answer

UK free-tier options include Pandle, Clear Books, Zoho Books and QuickFile, each with different feature and usage limits. As your business grows, you may need paid features such as automated bank feeds, payroll, multi-currency or advanced reporting. Check the official provider page before signing up.

Question 7

Do I need accounting software if I already use a spreadsheet?

Accepted Answer

Spreadsheets work for very early-stage businesses, but they quickly become error-prone and don't satisfy HMRC's MTD requirements. Dedicated accounting software automates bank reconciliation, VAT returns, and payroll — saving hours each month and reducing the risk of costly mistakes.

Question 8

What is the difference between bookkeeping and accounting software?

Accepted Answer

Bookkeeping software handles day-to-day transaction recording, invoicing, and bank reconciliation. Full accounting software adds features like management accounts, financial statements, tax filing, and payroll. Most modern platforms (Xero, QuickBooks, Sage) combine both into one product.

Question 9

Can I switch accounting software mid-year?

Accepted Answer

Yes — most providers offer data migration tools or CSV import/export. It's generally easier to switch at the start of a new financial year to keep records clean, but mid-year switches are possible. Always export a full backup before migrating and verify your opening balances carefully.

Question 10

What is RTI and do I need it for payroll?

Accepted Answer

Real Time Information (RTI) is HMRC's system for reporting payroll data every time you pay employees. If you have any employees, your payroll software must submit RTI reports to HMRC on or before each pay day. Platforms like Xero, QuickBooks, and Sage all include RTI-compliant payroll.

Question 11

Is my accounting data safe in the cloud?

Accepted Answer

Reputable cloud accounting providers use bank-grade encryption (256-bit SSL), regular backups, and ISO 27001 security standards. Your data is typically safer in the cloud than on a local hard drive. Always enable two-factor authentication (2FA) on your account for added protection.

Question 12

What is the best accounting software for a UK sole trader?

Accepted Answer

For sole traders, FreeAgent (free with most business bank accounts), QuickBooks Sole Trader Plus (£10/mo), and Xero Starter (£16/mo) are the most popular choices. All three are MTD-compliant, support Self Assessment, and include mobile apps. Use our quiz to get a personalised recommendation.

Software	Starting Price	Best For	Special Offer	MTD
QuickBooks OnlineMost Popular	£10/mo	Sole Trader, Freelancer	90% off the monthly price for six months for eligible new customers; alternative 30-day trial	✓ MTD	Get Deal
XeroEditor's Pick	£7/mo	Sole Trader, Freelancer	90% off for the first six months for eligible new UK customers	✓ MTD	Get Deal
Sage AccountingUK Favourite	£20/mo	Sole Trader, Small Business	30-day free trial; one month free fallback advertised. The displayed 90% offer is not treated as current because official legal terms say it expired 30 September 2026	✓ MTD	Get Deal
FreeAgentUK Favourite	£0 eligible customers, £10/mo landlord or £19/mo sole trader	Sole Trader, Freelancer	50% off monthly for six months or annual for the first year	✓ MTD	Get Deal
Zoho BooksBest Value	Free	Sole Trader, Freelancer	14-day free trial on paid plans	✓ MTD	Get Deal
FreshBooks	£16/mo	Sole Trader, Freelancer	50% off for three months	✓ MTD	Get Deal
Oracle NetSuiteEnterprise	Custom quote	Medium Business, Enterprise	Three-day Test Drive NetSuite Next and product tour available	✓ MTD	Get Deal
Sage 50 AccountsEnterprise	£115/mo	Small Business, Medium Business	30-day free trial	✓ MTD	Get Deal
Microsoft Dynamics 365 Business CentralEnterprise	£6.20/user/mo	Medium Business, Enterprise	30-day free trial; no current discount verified	✓ MTD	Get Deal
IRIS KashFlow	£13.50/mo	Sole Trader, Small Business	90% off for six months	✓ MTD	Get Deal
Clear Books	Free	Sole Trader, Small Business	50% off the first 3 months for eligible new subscriptions; 30-day free trial; free MTD plans	✓ MTD	Get Deal
OdooFree Option	Free; UK price unavailable	Small Business, Medium Business	Initial-user discount for 12 months; UK GBP amount not publicly verifiable	✓ MTD	Get Deal
QuickFileFree Option	Free	Sole Trader, Freelancer	60-day free trial; 50% charity discount on annual Power User; enterprise/high-volume quote above 40,000 entries	✓ MTD	Get Deal
Crunch	Free or £10/mo + VAT	Sole Trader, Freelancer	Crunch Free forever; 14-day trial advertised for relevant paid/accountancy products	✓ MTD	Get Deal
PandleFree Option	Free	Sole Trader, Freelancer	14-day Pandle Pro trial	✓ MTD	Get Deal

Find the Best UK Accounting Software for Your Business

What to Look for in UK Accounting Software

MTD Compliant

GBP Pricing

Self Assessment

CIS Support

Compare Accounting Software

QuickBooks Online

Xero

FreeAgent

Sage Accounting

Zoho Books

QuickFile

Crunch

FreshBooks

Sage 50 Accounts

Pandle

Oracle NetSuite

Clear Books

Odoo

Microsoft Dynamics 365 Business Central

IRIS KashFlow

Quick Pricing Overview

Frequently Asked Questions