Hnry UK Review: Is 1% of Income Worth It?

Hnry arrived in the UK promising to make tax invisible for freelancers and contractors. The proposition is simple: route your income through Hnry, and they will calculate your tax, set it aside, pay it to HMRC, and handle your self-assessment filing. All for 1% of your income, capped at a monthly maximum.

It sounds attractive. No more guessing how much to save for tax. No more January panic. No more dealing with HMRC. But is 1% of your income actually good value? And does the Hnry model work for UK freelancers as well as it does in its home market of New Zealand? In this review, we take an honest look at Hnry UK — what it does well, where it falls short, and how it compares to alternatives.

How Hnry Works

Hnry operates differently from traditional accounting software. Instead of giving you tools to manage your own finances, Hnry manages them for you. Here is the basic workflow:

You invoice your clients through Hnry or give them your Hnry bank details. When payment arrives, Hnry automatically calculates the tax owed on that income — including income tax, National Insurance, and student loan repayments if applicable. It sets aside the correct amount, pays you the rest, and sends the tax to HMRC on your behalf.

Throughout the year, Hnry tracks your expenses (you can submit them through the app), adjusts your tax calculations accordingly, and at year end, files your self-assessment return. The idea is that you never have to think about tax again.

The fee is 1% of your self-employed income, with a monthly cap (currently around £99). There are no additional charges for filing, expenses, or support.

What Hnry Gets Right

The most compelling aspect of Hnry is the peace of mind it provides. For freelancers who genuinely dread dealing with tax, having someone else handle the entire process has real value. You never owe a surprise tax bill because Hnry has been setting aside the right amount with every payment.

The real-time tax deduction model also improves cash flow discipline. Rather than spending your gross income and then scrambling to find money for tax, Hnry ensures the tax is taken care of first. This is psychologically powerful — the money in your account is genuinely yours to spend.

Hnry's expense tracking is straightforward. You photograph receipts, submit them through the app, and they are factored into your tax calculations. The platform also handles GST/VAT for applicable users.

For freelancers coming from countries where Hnry is well-established (New Zealand and Australia), the UK version offers a familiar experience.

Where Hnry Falls Short

Despite the polished pitch, there are several areas where Hnry's model raises questions for UK freelancers.

The 1% Cost

Let us do the maths. If you earn £50,000 per year, Hnry's fee is £500. At £80,000, it is £800. At £100,000, the cap kicks in at approximately £1,188 per year (£99 per month).

For comparison, Accounted's annual cost is significantly less than Hnry's fee for most income levels. Even Xero and FreeAgent are cheaper in raw subscription terms, though they do not include the tax filing service.

The question is whether Hnry's automation justifies the premium. If you would otherwise pay an accountant £500-800 per year for self-assessment filing, Hnry is comparable. But if you are comfortable using software like Accounted that handles filing as part of its standard subscription, Hnry is the more expensive option.

According to Unbiased research, the average cost of an accountant for a sole trader's self-assessment is £200-500 per year. Hnry can exceed this for higher earners.

Loss of Control

Routing all your income through a third party requires a significant level of trust. You are giving Hnry access to your income stream, and they are making decisions about how much tax to withhold. While their calculations are generally accurate, you have less visibility into the detail than you would with your own accounting software.

Some freelancers also report friction when clients are asked to pay into a Hnry account rather than the freelancer's own bank account. It can look unprofessional, and some clients are uncomfortable paying a third party.

Limited Accounting Features

Hnry is not a full accounting platform. It handles income, expenses, and tax — but it does not offer invoicing, bank reconciliation, financial reporting, or the broader bookkeeping features that platforms like Accounted, Xero, or FreeAgent provide.

If you need a profit and loss statement, want to track cash flow, or require VAT management, you will need additional tools alongside Hnry. This partially negates the simplicity argument.

MTD Quarterly Submissions

With Making Tax Digital requiring quarterly submissions for sole traders earning above £50,000, the question is how Hnry handles these requirements. The platform is adapting, but its original model was designed around annual filing rather than ongoing digital record-keeping.

Accounted, by contrast, was built for MTD from the ground up. Quarterly submissions, digital records, and ongoing compliance are core features. For more on this, read our Making Tax Digital complete guide.

Hnry vs Accounted: A Direct Comparison

Let us compare the two directly:

Pricing: Hnry charges 1% of income (capped). Accounted charges a flat monthly subscription regardless of income. For most sole traders, Accounted is cheaper. Visit our pricing page for exact figures.

Bookkeeping: Hnry offers basic expense tracking. Accounted provides full bookkeeping with AI-powered categorisation through Penny, bank feed integration, and receipt scanning via WhatsApp.

Tax filing: Both handle self-assessment filing. Hnry files automatically as part of its service. Accounted guides you through filing with Penny's help.

Tax estimates: Both provide real-time tax calculations. Hnry deducts tax from each payment. Accounted shows your running tax liability and lets you save separately.

MTD compliance: Accounted is fully MTD-compliant with native quarterly submissions. Hnry is developing its MTD capabilities.

Control: Accounted keeps you in control of your finances while automating the tedious parts. Hnry takes control of the process entirely, which suits some people but unsettles others.

Invoicing: Accounted includes invoicing. Hnry offers basic invoicing but it is not its core strength.

For a broader comparison of accounting options, see our best accounting software for sole traders 2026 guide and our FreeAgent vs Xero vs Accounted comparison.

Who Is Hnry Best For?

Hnry works best for freelancers who meet all of these criteria:

• They have a genuine aversion to anything finance-related and want someone else to handle it entirely
• Their clients are comfortable paying into a Hnry account
• They have simple tax affairs (self-employment only, no property income or capital gains)
• They earn enough that the 1% fee feels proportionate to the value received
• They do not need detailed financial reporting or full bookkeeping

If you tick all five boxes, Hnry may be worth considering. If even one does not apply, you are likely better served by a platform that gives you more control and costs less.

Who Should Look Elsewhere?

Hnry is not ideal for:

• Higher earners who will pay close to the monthly cap — the annual cost exceeds what many accountants charge
• Sole traders who want visibility into their full financial picture, not just tax
• Anyone who needs VAT management, detailed reporting, or invoicing
• Freelancers whose clients prefer to pay directly into the freelancer's bank account
• Those who fall under MTD requirements and need robust quarterly submission support

The Verdict

Hnry's proposition is appealing on the surface: pay 1%, forget about tax. In practice, the model works better for some freelancers than others. The cost scales with income, the loss of control is not for everyone, and the limited accounting features mean you may need additional tools anyway.

For most UK sole traders, Accounted offers a better balance. Penny automates the bookkeeping and tax work that Hnry promises to take off your hands, but at a lower cost and with more comprehensive features. You stay in control of your money while still getting the benefit of AI-powered automation.

As the HMRC Making Tax Digital framework evolves, having a platform that handles ongoing compliance — not just annual filing — is increasingly important.

Ready to compare for yourself? Sign up for Accounted and see what Penny can do for your freelance finances.

See how Accounted compares to Xero, Sage, QuickBooks and more — and why sole traders are switching. See the full comparison →