Cheapest Accounting Software UK 2026: Prices
When you are self-employed or running a small business, every pound matters. Accounting software is a recurring cost that you will pay for years, so getting the best value is worth some research. But "cheapest" does not always mean "best value" — a free tool that costs you three hours of your time every month is more expensive than a £12/month tool that does the work for you.
This guide compares the actual prices of every major UK accounting software option in 2026, including free plans, and assesses what you get for your money.
The Complete Price List
Here is every major accounting platform available to UK sole traders and small businesses, ranked by price.
Free Platforms
Quickfile — £0 (up to 1,200 transactions/year)
Quickfile offers a genuinely free accounting platform with full double-entry bookkeeping, invoicing, bank feeds, and VAT returns. The limit is 1,200 transactions per year — about 100 per month. Above that, plans start from £45/year.
What you get: Full accounting, invoicing, bank feeds, VAT returns, basic reporting. What you lose: No tax calculations, no Self Assessment filing, no AI automation, no receipt OCR.
Coconut — £0 (basic plan)
Coconut's free plan connects to your bank and lets you categorise transactions. Tax estimates and filing require paid plans starting from £6/month.
What you get: Bank feeds, basic expense tracking, simple interface. What you lose: No tax estimates, no filing, no MTD, limited features.
Wave — £0
Wave offers free invoicing and accounting. It makes money from payment processing and payroll. UK-specific features are limited.
What you get: Invoicing, expense tracking, basic reporting. What you lose: Not HMRC-recognised for MTD, limited UK tax support, no Self Assessment.
Pandle — £0 (basic plan)
Pandle offers free double-entry accounting with bank feeds, invoicing, and VAT support. Paid add-ons start from £5/month.
What you get: Full double-entry accounting, invoicing, bank feeds, VAT returns. What you lose: No tax calculations, limited Self Assessment, manual everything.
FreeAgent — £0 (with NatWest/RBS/Ulster Bank)
FreeAgent is the standout free option. With a NatWest, RBS, or Ulster Bank business account, you get the full platform — bank feeds, invoicing, Self Assessment filing, MTD compliance, and tax estimates. Without a qualifying bank account, FreeAgent costs £14.50/month.
What you get: Everything — invoicing, bank feeds, tax estimates, Self Assessment, MTD, project tracking. What you lose: Nothing significant (but you need to bank with NatWest/RBS).
Budget Platforms (Under £15/month)
Coconut Pro — £6/month (£72/year)
The paid Coconut plan adds tax estimates and Self Assessment filing to the free features.
What you get: Everything in free plus tax estimates and filing. What you lose: No AI automation, manual categorisation, limited reporting.
Accounted — £12/month (£144/year)
Accounted includes all features in a single plan — AI-powered categorisation by Penny, WhatsApp receipt scanning, real-time tax estimates, MTD quarterly submissions, and Self Assessment filing.
What you get: AI bookkeeping, WhatsApp receipts, tax calculations, MTD, Self Assessment, bank feeds. What you lose: No invoicing (yet), UK only.
See our pricing page for current details, or start a free trial.
QuickBooks Self-Employed — £12/month (£144/year)
QuickBooks' sole trader plan covers income and expense tracking, mileage logging, and basic tax estimates.
What you get: Expense tracking, mileage, basic tax estimates, receipt capture, mobile app. What you lose: Limited features compared to full QuickBooks, basic MTD.
Sage Start — £12/month (£144/year)
Sage's entry-level plan covers invoicing, expense tracking, and basic bookkeeping.
What you get: Invoicing, bank feeds, receipt capture, basic reporting. What you lose: Limited features, VAT requires upgrade.
FreeAgent — £14.50/month (£174/year)
The standard FreeAgent price if you do not bank with NatWest.
What you get: Full platform — invoicing, bank feeds, tax, Self Assessment, MTD. What you lose: Nothing significant at this price.
Mid-Range Platforms (£15–£35/month)
Xero Starter — £15/month (£180/year)
Xero's cheapest plan limits you to 20 invoices per month and basic bank reconciliation.
What you get: Basic invoicing (20/month), limited bank reconciliation, app integrations. What you lose: Limited invoicing, restricted reconciliation — most users need to upgrade.
Sage Standard — £26/month (£312/year)
Sage's mid-tier plan adds VAT returns, more advanced reporting, and additional features.
What you get: Full invoicing, VAT, advanced reporting, bank feeds, receipt capture. What you lose: Still not as automated as AI-powered options.
QuickBooks Simple Start — £14/month (£168/year)
The entry point to the main QuickBooks platform. More features than Self-Employed but different product line.
What you get: Invoicing, expense tracking, bank feeds, basic reporting. What you lose: Limited users, basic features at this tier.
Xero Growing — £33/month (£396/year)
The plan most Xero users end up on. Unlimited invoicing and full bank reconciliation.
What you get: Unlimited invoicing, full reconciliation, multi-currency, app marketplace. What you lose: Still requires manual categorisation, expensive for sole traders.
Premium Platforms
Xero Established — £47/month (£564/year)
Xero's top tier adds multi-currency, expense claims, and project tracking.
QuickBooks Essentials — £24/month (£288/year)
Adds bill management and time tracking to the QuickBooks platform.
Crunch Self-Service — £39.50/month (£474/year)
Crunch's software-only plan without the managed accountant service.
Crunch Managed — from £79.50/month (£954/year)
Software plus a dedicated accountant who manages everything.
Annual Cost Comparison
Here is the true annual cost for the platforms most relevant to UK sole traders:
| Platform | Annual Cost | Includes Filing | Includes MTD | AI Automation | |----------|-------------|-----------------|--------------|---------------| | FreeAgent (NatWest) | £0 | Yes | Yes | No | | Quickfile | £0–£45 | No | Yes (VAT) | No | | Pandle | £0–£60 | Limited | Yes (VAT) | No | | Coconut Pro | £72 | Yes | Limited | No | | Accounted | £144 | Yes | Yes | Yes | | QuickBooks SE | £144 | Limited | Limited | No | | Sage Start | £144 | No | Limited | No | | FreeAgent (standard) | £174 | Yes | Yes | No | | Xero Starter | £180 | Via accountant | Yes | No | | Xero Growing | £396 | Via accountant | Yes | No | | Crunch Managed | £954+ | Yes | Yes | No |
Value Per Pound: What Matters Most
Raw price comparisons miss the point. What matters is value per pound — what do you actually get for what you spend?
The Time Factor
This is the biggest hidden cost in accounting software. According to HMRC research, small business owners spend an average of several hours per month on bookkeeping and tax compliance. With manual software, that time is spent categorising transactions, matching receipts, and preparing submissions.
With AI-automated software like Accounted, that time drops dramatically. If you value your time at £25 per hour and save two hours per month, that is £600 per year in time savings — far more than the £144 annual cost.
The Penalty Factor
HMRC's penalty points system means missed MTD submissions accumulate points. Each point moves you closer to a £200 penalty, and additional penalties follow. Software that makes submissions automatic — like Accounted — reduces this risk to near zero.
The Deduction Factor
Missing legitimate expense deductions is common with manual software. If you miss £500 in deductible expenses over a year, and you are a basic rate taxpayer, that costs you £100 in extra tax plus National Insurance. Over several years, missed deductions add up to far more than the cost of better software.
Our Honest Recommendations by Budget
£0/month — FreeAgent via NatWest
If you bank with NatWest, RBS, or Ulster Bank, this is unbeatable. You get a full-featured platform for free. The manual categorisation is the only real drawback.
If you do not bank with NatWest, Quickfile is the strongest free option for full accounting, though you will need separate tools for tax filing.
Under £15/month — Accounted
At £12/month, Accounted provides AI automation, tax calculations, MTD submissions, and Self Assessment filing. The value per pound is exceptional because Penny saves you significant time every month.
This is our product, so we are biased. But we genuinely believe it is the best value in this price range for self-employed UK workers who want their bookkeeping handled automatically.
£15–£35/month — FreeAgent or QuickBooks
If you need invoicing alongside bookkeeping (which Accounted does not yet offer), FreeAgent at £14.50 or QuickBooks at £12–£24 provide good all-round platforms. FreeAgent is more UK-focused; QuickBooks has a better mobile app.
£35+/month — Xero (with accountant)
If you work with an accountant and need the broadest possible feature set and integration ecosystem, Xero at £33/month is the industry standard. The cost is justified if your accountant adds value that exceeds the premium.
The Trap of "Free"
Free software is not free if it costs you time, missed deductions, or penalties. Before choosing the cheapest option, calculate the total cost of ownership:
Total cost = Software price + (Hours spent per month x Your hourly rate x 12) + Missed deductions + Penalty risk
For many self-employed people, a £12/month tool with AI automation has a lower total cost than a free tool with manual everything.
That said, genuinely good free options exist — FreeAgent via NatWest is the best example. If that option is available to you, it is genuinely hard to beat on overall value.
Making Your Decision
- Check if FreeAgent is free for you. If you bank with NatWest/RBS, start there.
- If not, consider what your time is worth. If the answer is "more than £12/month," Accounted's automation pays for itself.
- If you need invoicing, factor this into your decision. Accounted does not offer it yet; Xero, QuickBooks, and FreeAgent do.
- If you work with an accountant, ask what they recommend. Their efficiency with the platform affects the value you get from their service.
Check our pricing page for current Accounted plans, or browse our best bookkeeping software guide for deeper feature comparisons. And if MTD compliance is driving your decision, our Making Tax Digital guide explains exactly what your software needs to do.
The cheapest accounting software is not always the one with the lowest sticker price. It is the one that costs the least when you account for everything — including your time, your stress, and your tax savings.
See how Accounted compares to Xero, Sage, QuickBooks and more — and why sole traders are switching. See the full comparison →
Editorial & Research
The Accounted editorial team covers software comparisons, technology, and the tools UK sole traders need to run their businesses efficiently. All software comparisons are based on independent research and publicly available pricing.
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