The Best Accounting Software for UK Sole Traders in 2026

There's no shortage of accounting software for sole traders in the UK. Most of it is aimed at Ltd companies or accountants. Here's the honest comparison for tradespeople.

What you actually need

As a sole trader, you need software that:

1. Logs invoices and payments — money in.
2. Logs expenses and receipts — money out.
3. Calculates profit — turnover minus expenses.
4. Tracks VAT — if registered, your quarterly VAT return.
5. Tracks Self Assessment — your year-end tax bill.
6. Exports quarterly CSVs — for your accountant or MTD bridging software.
7. Is built for your trade — not for agencies or restaurants.

You don't need most of what full accounting software offers (journal entries, depreciation schedules, multi-currency). You need a clean, simple, trades-person-friendly tool.

The main options

1. GraftLog

Price: £9.99/mo or £99/yr.

Best for: sole traders and small trade businesses.

Pros:

• Built for UK tradespeople from the ground up.
• AI quote builder, receipt OCR, MTD quarterly summaries.
• One simple price — no per-user fees, no add-ons.
• Phone-first design (tradies don't sit at desks).

Cons:

• Limited functionality for Ltd companies (no corporation tax, dividends).
• New product — smaller user base than the alternatives.

2. FreeAgent

Price: £14.50/mo (or free through some accountant packages).

Best for: Ltd companies and sole traders who want a "proper" accounting package.

Pros:

• MTD-ready, full Self Assessment and corporation tax.
• Strong accountant ecosystem.
• Established and stable.

Cons:

• Built for accountants, not tradespeople. Interface is dense.
• More functionality than most sole traders need.
• £14.50/mo for limited features you won't use.

3. QuickBooks Self-Employed

Price: £10/mo (Simple Start), £20/mo (Essentials), £35/mo (Plus).

Best for: freelancers who need to track mileage and expenses.

Pros:

• Excellent mobile app.
• Bank feed integration (auto-imports transactions).
• Mileage tracking is great.

Cons:

• US-centric. UK tax terminology sometimes feels grafted on.
• Doesn't quote or invoice in a trades-friendly way.
• Pricing tiers lock features away.

4. Xero

Price: £15/mo (Starter), £33/mo (Standard), £65/mo (Premium).

Best for: Ltd companies with employees, inventory, or multi-currency.

Pros:

• Beautiful interface.
• Massive ecosystem of add-on apps.
• Good bank feeds.

Cons:

• Overkill for a sole trader.
• £15/mo minimum for features most tradespeople don't need.
• Steep learning curve.

5. Sage

Price: £12–£30/mo depending on tier.

Best for: traditional UK businesses, especially construction.

Pros:

• UK heritage — built for UK tax.
• Strong construction-industry features.
• Sage 50 desktop option still exists.

Cons:

• Interface feels dated compared to newer tools.
• Pricing has crept up.
• Mobile experience weaker than the alternatives.

6. Spreadsheet (Excel / Google Sheets)

Price: £0.

Best for: people who genuinely enjoy spreadsheets and aren't yet MTD-bound.

Pros:

• Free.
• Full control over your data.
• You can build exactly what you want.

Cons:

• Not MTD-compatible — HMRC doesn't accept "preserved" CSV exports from arbitrary spreadsheets.
• No receipt OCR, no automatic categorisation.
• One accidental formula delete and your year is gone.

The honest recommendation

For tradespeople who are MTD-bound (over £20k turnover, eventually everyone):

• If you just need a simple way to track invoices and expenses → GraftLog. Built for tradespeople, includes quotes, invoicing, and MTD exports.
• If you have a Ltd company or complex tax → FreeAgent or Xero.
• If your accountant has a preferred platform → ask them.

For tradespeople not yet MTD-bound but building towards it:

• Start with GraftLog for invoicing and quotes (the bits you actually do daily).
• Use your accountant's preferred software at year-end.

What to switch from

If you're currently using a spreadsheet:

1. Move your customer list into your new tool.
2. Stop using the spreadsheet today.
3. Issue your next invoice from the new tool.
4. Backfill the last 3 months of expenses from bank statements.

You don't need to migrate your entire history — the new tool starts fresh and grows from there.

The bottom line

Pick software that you'll actually open every day. A free spreadsheet is "free" only if you remember to update it. A £10/mo app that automates most of the work will save you 5+ hours a month.

Try GraftLog free for 14 days →