QuickBooks · Xero · FreeAgent · Sage · Crunch — compared for freelancers, sole traders and limited companies
The right accounting software saves you hours every month and keeps you compliant with MTD (Making Tax Digital). Our picks cover every type of UK business — from first-time freelancers to established limited companies with complex VAT needs.
| Software | From | MTD | Best for |
|---|---|---|---|
| QuickBooks | £14/mo | ✓ | Most integrations, scalable |
| Xero | £16/mo | ✓ | VAT, growing businesses |
| FreeAgent | £19/mo or free* | ✓ | Contractors, limited companies |
| Sage | £15/mo | ✓ | Established SMEs |
| Crunch | £24.50/mo | ✓ | Limited company contractors (incl. accountant) |
*FreeAgent free with NatWest, RBS, Ulster Bank or Starling business account. Prices ex-VAT. Updated May 2026.
The UK's most widely used accounting platform. QuickBooks connects to virtually every bank, payment processor and e-commerce tool, making it the default choice for businesses with multiple revenue streams or complex integrations.
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Xero is the accountant's favourite and widely regarded as having the cleanest VAT handling on the market. If you're VAT-registered or planning to grow, Xero's ecosystem of 1,000+ integrations and its strong UK accountancy community make it a natural choice.
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FreeAgent was built specifically for UK freelancers and limited company contractors. It handles Self Assessment, Corporation Tax, payroll and VAT in one place — and remains completely free forever with a NatWest, RBS, Ulster Bank or Starling business account.
*Free for life with a qualifying NatWest, RBS, Ulster Bank or Starling business account. We may earn a commission if you sign up via our link.
Sage is the household name in UK accounting — trusted by over 800,000 UK businesses. Sage Accounting (formerly Sage One) is its cloud product for small businesses, with the full desktop suite (Sage 50) for larger operations.
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Crunch is unique: it combines accounting software with access to a qualified accountant. For limited company contractors who don't want to hire a separate accountant, Crunch's all-in-one model can work out cheaper than software plus accountant fees separately.
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Start with FreeAgent (free with Starling) or QuickBooks Simple Start (£14/mo). Both handle Self Assessment and bank reconciliation without complexity.
Xero leads on VAT handling and MTD bridging. QuickBooks is a strong second if you need more integrations.
FreeAgent (free with NatWest/RBS/Starling) is purpose-built. Crunch if you want an accountant included — typically £24.50/mo all-in.
Xero or Sage scale best. Xero for modern cloud-first; Sage if your accountant already uses it or you need the Sage 50 upgrade path.
Making Tax Digital is HMRC's phased programme to move tax reporting online:
| MTD Phase | Who it affects | When |
|---|---|---|
| MTD for VAT | All VAT-registered businesses | Already live (since April 2022) |
| MTD for ITSA (phase 1) | Self-employed income > £50,000 | April 2026 |
| MTD for ITSA (phase 2) | Self-employed income > £30,000 | April 2027 |
All five platforms on this page are HMRC-recognised for MTD. If you're currently using spreadsheets or desktop software, switching now avoids a last-minute scramble.