Free accounting software sounds too good to be true, and often it is, but a handful of genuinely free options exist in the UK that will keep a micro business compliant without a monthly bill. The trick is understanding where each one draws its line, because free almost always comes with a limit on entries, users, features or a linked banking relationship.
We have ranked the real free options, not time limited trials, on what you actually get and where the catch sits. For a landlord, a very small business or anyone testing the water, one of these could cover you for years at no cost.
What to look for in UK accounting software
Start with Making Tax Digital. Any accounting software you choose should be recognised by HMRC for MTD for VAT, and increasingly for Income Tax too, so that you can keep digital records and file returns directly rather than through a workaround. This is now a baseline requirement rather than a nice to have, and every option we recommend clears it.
Beyond compliance, weigh four things. First, the real cost, which means the renewal price excluding VAT rather than a first year discount, and whether payroll is included or charged separately, because that single factor can flip which product is cheapest. Second, bank connectivity and reconciliation, since this is where you will spend most of your time and a good feed saves hours every month. Third, whether it handles any sector specifics you need, such as CIS for construction or multi currency for importers. And fourth, whether your accountant already knows it, because collaboration is far smoother when you both work in the same system.
How we assessed these tools
Every product here was judged on the things that actually decide whether software works for a UK business: the real published price excluding VAT, how it handles HMRC obligations such as Making Tax Digital, RTI or CIS where relevant, the depth of the core job it is bought for, how quickly a non specialist can get productive, and the quality of UK support. We read each vendor's own pricing pages rather than repeating third party figures, and we weight verified user ratings from people who run these tools day to day.
We also try to be honest about fit rather than crowning a single winner, because the right tool for a ten person business is rarely the right tool for a two hundred person one. Each entry below carries its real starting price, its current Assaylist rating and a clear note on who it suits and where it falls short, so you can match the software to your own situation rather than to an average. Where we earn a commission from an outbound link we say so, and it never changes the order of this list.
The best options ranked
1. QuickFile
QuickFile is the strongest genuinely free option, covering full accounting including Making Tax Digital VAT returns for businesses under a thousand ledger entries a year, with unlimited users on every plan. Above that threshold it is only sixty pounds a year, which is remarkable for a UK company holding UK data.
What you get: A UK company offering full accounting software free for smaller businesses, with a flat £60 a year charge only once your transaction volume grows. It holds a 4.1 out of 5 rating across 203 reviews on Assaylist.
Pricing: The plans run XS, S and M at free, L and XL at £60 and Automated bank feeds at £15 per year, excluding VAT.
Why we rate it:
- Genuinely free below 1,000 ledger entries
- Unlimited users on every plan
- £60 a year at the paid tier, not per month
- UK company holding UK data
Bear in mind: bank feeds are a small paid extra and the interface is dated.
Read our full QuickFile review →
2. Zoho Books
Zoho Books has the most generous free plan on features, filing Self Assessment and handling MTD VAT, CIS and property tracking at no cost for a solopreneur. It is the rare free tool that does not feel cut down, and it upgrades smoothly if you outgrow it.
What you get: Part of the wider Zoho suite. The UK edition files SA100 and CT600, handles MTD and CIS, and starts at nothing for one user. It holds a 4.0 out of 5 rating across 325 reviews on Assaylist.
Pricing: The plans run Free at free, Standard at £12 and Professional at £24 per month, excluding VAT.
Why we rate it:
- Free plan that files Self Assessment
- Corporation Tax filing from Standard
- Property tracking for landlords
- Native Zoho suite integration
Bear in mind: fewer UK accountants know it, so check yours will work with it.
Read our full Zoho Books review →
3. FreeAgent
FreeAgent is not free to everyone, but it is completely free for as long as you bank with NatWest, RBS, Ulster or Mettle, and crucially it is the full product rather than a limited version. For a contractor with the right bank account, that is the best free accounting deal in the UK.
What you get: A UK accounting product owned by NatWest, aimed squarely at limited company contractors and sole traders. Free for as long as you bank with the group. It holds a 4.0 out of 5 rating across 497 reviews on Assaylist.
Pricing: The plans run Free with NatWest, RBS, Ulster or Mettle at free, Sole trader at £19 and Limited company at £33 per month, excluding VAT.
Why we rate it:
- Free with a NatWest, RBS, Ulster or Mettle account
- Built for UK limited company contractors
- Tax timeline showing what is owed and when
- Corporation Tax and dividend handling
Bear in mind: the free access ends if you leave the qualifying bank.
Read our full FreeAgent review →
4. Sage Sole Trader
Sage Sole Trader offers a free tier aimed squarely at non VAT registered sole traders facing Making Tax Digital for Income Tax. It is a genuinely free way to satisfy the new quarterly reporting rules from a major vendor, which is unusual and welcome.
What you get: Sage's entry level tool for self employed people facing Making Tax Digital for Income Tax. There is a genuinely free tier for non VAT registered sole traders. It holds a 4.1 out of 5 rating across 217 reviews on Assaylist.
Pricing: The plans run Sage Sole Trader Free at free and Sage Sole Trader at £7 per month, excluding VAT.
Why we rate it:
- Free tier for non VAT registered sole traders
- MTD for Income Tax ready
- Self Assessment preparation
- UK telephone support
Bear in mind: you outgrow it as soon as you register for VAT.
Read our full Sage Sole Trader review →
5. Odoo
Odoo's one app free tier lets you run a single application, such as accounting, free forever with unlimited users. It is a route to genuinely capable free accounting for a business willing to work within a single module, with the option to add more later.
What you get: An open source business platform of interlocking apps covering accounting, CRM, inventory, manufacturing and more. Free for one app, then per user, with a large implementation partner network. It holds a 4.0 out of 5 rating across 286 reviews on Assaylist.
Pricing: The plans run One App Free at free, Standard at £19.9 and Custom at £29.9 per user per month, excluding VAT.
Why we rate it:
- Modular, switch on only what you need
- One app free forever
- Far cheaper than proprietary ERP
- Open source and highly customisable
Bear in mind: getting the most from it takes configuration effort.
Read our full Odoo review →Comparison at a glance
Here is how the shortlist compares on what it is best for, the starting price excluding VAT and the current Assaylist rating.
| Software | Best for | Starting price | Rating |
|---|---|---|---|
| QuickFile | Best free overall | From £0 / year | 4.1 |
| Zoho Books | Best free features | From £0 / month | 4.0 |
| FreeAgent | Best free for contractors | From £19 / month | 4.0 |
| Sage Sole Trader | Best free for MTD Income Tax | From £7 / month | 4.1 |
| Odoo | Best free single app | From £19.90 per user / month | 4.0 |
How much should you budget?
Cloud accounting for a UK small business typically costs between fourteen and sixty pounds a month excluding VAT, depending on the tier and whether payroll is included. Entry plans around fourteen to twenty pounds suit a sole trader or a simple limited company, mid tiers around forty pounds add multi user access, quotes, forecasting and CIS, and top tiers near sixty pounds bring inventory and multi currency. Free options exist for the smallest businesses, notably QuickFile and the free tiers of Zoho Books and Sage Sole Trader.
The figure to watch is the renewal price rather than the introductory discount, since several vendors advertise heavy first year savings and then step up sharply. Factor payroll into the comparison too, because a product that bundles it can undercut one that charges separately once you add a payroll subscription. Budget on the total you will actually pay in year two, not the headline you see at sign up.
Our verdict
For most micro businesses, QuickFile is the best free option overall, with Zoho Books the pick if you want the richest free feature set. Contractors banking with the right group should take FreeAgent's full free product, which is arguably the best deal of all.
If your specific need is satisfying Making Tax Digital for Income Tax as a sole trader, Sage Sole Trader's free tier does exactly that. Just go in clear eyed about where each free plan draws its line, because the moment you cross it, the paid version is where you land.
The bottom line
Genuinely free accounting exists, but every plan draws a line somewhere. QuickFile is the best free option overall, Zoho Books the richest on features, and FreeAgent the best deal of all if you bank with a qualifying group. Go in clear about where each free plan stops, because the moment you cross that line, the paid version is where you land, and choose the one whose limit you are least likely to hit soon.
Frequently asked questions
Is there genuinely free accounting software in the UK?
Yes. QuickFile is free below a thousand ledger entries a year, Zoho Books has a free plan that files Self Assessment, Sage Sole Trader offers a free tier for non VAT registered sole traders, and FreeAgent is free for customers of several banks. These are real products, not trials.
Does free accounting software support Making Tax Digital?
The best free options do. QuickFile, Zoho Books and Sage Sole Trader all support Making Tax Digital, whether for VAT or for Income Tax, at no cost. This makes them a genuine route to compliance for a micro business without a software budget.
What is the catch with free accounting software?
Every free plan draws a line somewhere: a limit on transactions as with QuickFile, a single user or a linked bank account as with FreeAgent, or a restriction to non VAT registered businesses as with Sage Sole Trader. Understand where that line sits before you commit.
Can a limited company use free accounting software?
Some free options suit limited companies, notably FreeAgent for customers of qualifying banks and QuickFile below its entry threshold. Others, such as Sage Sole Trader, are aimed at sole traders. Check that the free plan covers your business type and your VAT status.
When should I upgrade from free accounting software?
Upgrade when you cross the plan's limit, whether that is transaction volume, VAT registration, taking on staff or needing multiple users. The paid tiers of these same products are usually the natural next step, so the transition is smooth.
Prices were checked against each vendor's UK pricing on 6 August 2026 and exclude VAT unless stated. Vendors change pricing, so confirm the current figure on the vendor's own site before you buy. Some links are commercial; where we earn a commission it never affects our ratings or the order of this list.
