UK accounting software
Pick the right
accounting software
for your situation.
Xero, QuickBooks, Tide — they're all good. But the right one depends on your business type, your VAT setup, and how much you want to do yourself. We break it down honestly.
✓ No sponsored rankings
✓ Updated for 2026/27
✓ MTD-compliant picks only
Quick picks
Sole trader
Xero or QuickBooks
Limited company
Xero
CIS subcontractor
QuickBooks
Just starting out
Tide
Find your fit
What kind of business are you?
Sole trader or freelancer
You invoice clients, track expenses, file Self Assessment. You may need to register for VAT if turnover approaches £90k.
Our pick
Xero Starter
QuickBooks Simple Start is a close alternative at a lower entry price.
Limited company owner
You run a company, pay yourself salary + dividends, file CT600 and possibly quarterly VAT. Your bookkeeping needs to be clean enough for a CT computation.
Our pick
Xero Standard
QuickBooks Essentials works well too — both produce the P&L and balance sheet your accountant needs.
CIS subcontractor
You work in construction, get paid gross or with CIS deductions withheld. You need to track those deductions carefully for your SA return.
Our pick
QuickBooks
QuickBooks has the strongest built-in CIS handling of the three. Also check out our free CIS expense log.
Just starting out
You're new to self-employment, income is modest, and you want banking and basic bookkeeping in one place without a monthly accounting software bill.
Our pick
Tide
Tide's business account includes basic bookkeeping and tax pots. Upgrade to dedicated software when turnover justifies it.
The full picture
Honest pros and cons
Xero
Best all-rounder
From £16/month (Starter plan)
✓ Pros
- Clean, intuitive interface — least steep learning curve
- Excellent MTD VAT submission built in
- Huge accountant ecosystem (most UK accountants use Xero)
- Strong bank feed reconciliation
- 30-day free trial
✕ Cons
- Starter plan limits you to 20 invoices/month
- No built-in payroll on base plans (add-on)
- Pricier than QuickBooks at equivalent plan levels
Best for limited company owners who want to hand clean books to their accountant at year end.
Try Xero free →
QuickBooks
Best value
From £14/month (Simple Start)
✓ Pros
- Best CIS handling of any mainstream software
- Strong payroll included at higher plan levels
- Up to 75% off for 6 months via affiliate links
- 90-day free trial available
- Excellent mobile app
✕ Cons
- Interface feels busier than Xero
- Some UK accountants prefer Xero — check with yours first
- Price increases significantly after the intro period
Best for CIS subcontractors, sole traders who want payroll, and anyone who wants the best introductory deal.
Try QuickBooks free →
Tide
Banking + bookkeeping
Free business account (paid tiers available)
✓ Pros
- Bank account + bookkeeping in one app
- Automatic tax pots set money aside as you get paid
- Open in minutes, no credit checks
- Free base tier — no monthly fee to get started
✕ Cons
- Not a full accounting package — you'll outgrow it
- No CT600 or payroll support
- Accountants can't connect to it as easily as Xero/QB
Best as a starting point for very new businesses — upgrade to Xero or QuickBooks once you're established.
Open a Tide account →
FreeAgent
Freelancer favourite
From £19/month (or free with NatWest/RBS)
✓ Pros
- Built specifically for UK freelancers and small companies
- Self Assessment SA100 and CT600 built in — file directly
- Free if you bank with NatWest, RBS or Ulster Bank
- Very clean interface, loved by its users
✕ Cons
- Smaller ecosystem than Xero or QuickBooks
- Pricier than QuickBooks at equivalent functionality
- No standard public affiliate programme (contact them directly)
Best for freelancers who bank with NatWest/RBS (free), or anyone who wants to file their own SA100 from within the software.
Try FreeAgent →
Side by side
Feature comparison
| Feature | Xero | QuickBooks | Tide | FreeAgent |
|---|---|---|---|---|
| MTD VAT submission | ✓ | ✓ | ✕ | ✓ |
| CT600 support | ✕ | ✕ | ✕ | ✓ |
| Self Assessment (SA100) | ✕ | ✕ | ✕ | ✓ |
| CIS subcontractor handling | Basic | ✓ | ✕ | Basic |
| Payroll | Add-on | Included | ✕ | Included |
| Bank feed reconciliation | ✓ | ✓ | ✓ | ✓ |
| Free trial | 30 days | 30 days | Free tier | 30 days |
| Starting price | £16/mo | £14/mo | Free | £19/mo |
| Best for | Ltd co | CIS/SE | Startups | Freelancers |
Prices correct at time of publication · Always check current pricing directly with the provider.
Not sure which to pick?
Talk to a qualified accountant
Through Accountant Connect we can put you in touch with a UK-qualified accountant who'll recommend the right setup for your specific situation — and handle the filing too.
Talk to an accountant →Ready to practise your return?
Use ReturnDeck to work through a real CT600, VAT return, or Self Assessment — with instant validation and worked solutions.