Best invoicing software for sole traders
The yearly cost at a real sole trader volume

Invoicing software is easy to compare on the homepage and hard to compare on the bill. One product caps invoices on its cheap plan, another puts repeating invoices on a dearer one, a third is discounted 90% for six months and then is not.

So instead of headline prices, this page prices a year for one realistic sole trader: ten invoices a month, four of them repeating monthly, reminders on, and quarterly updates to HMRC under Making Tax Digital. Every price was checked on 7 October 2026 and excludes VAT where the vendor quotes it that way.

The scenario

A self-employed sole trader, not VAT-registered, with qualifying income over £50,000 so Making Tax Digital applies from April 2026. Ten invoices a month, four of them to retainer clients on a monthly repeat. Wants automatic reminders, receipt capture, and quarterly updates sent from the same software.

A year of invoicing, priced

Sources: Zoho Books, FreeAgent, QuickBooks (from Intuit's UK offer data), Xero, SumUp, Zervant and Invoice2go, all checked 7 October 2026. "Separate MTD" means the invoicing software does not file, so you would add MTD software on top.

Where the cheap plans stop

Xero's Simple plan, at £7 a month excluding VAT, includes MTD for Income Tax and is built for sole traders and landlords who are not VAT-registered, but it allows 10 invoices a month. Our scenario sits exactly on that cap, so one busy month moves you to Ignite at £18, which allows 20. Unlimited invoices start on Grow at £39. Xero raised these prices on 1 September 2026.

QuickBooks' Sole Trader Plus at £10 a month and Simple Start at £16 include invoicing and MTD for Income Tax, but recurring invoices start on Essentials at £38. If you send repeating invoices, that is the plan you are on.

Both offered 90% off for the first six months on 7 October 2026, which makes year one far cheaper than year two. Price year two.

Introductory discount

A reduced price for the first months of a subscription, after which the list price applies. Year-one cost can be a fraction of every later year.

Best value that files your tax: TapTax and Zoho Books

TapTax Starter at £49 a year includes everything in the scenario: unlimited invoices from six templates, saved clients and a rate card, repeating invoices, reminders before and after the due date, and statutory late-payment interest for business clients if you want it. It reads receipts and bills, 50 a month on Starter, and files your quarterly updates for sole trader income, with property income on Pro at £99 a year. It does not file VAT returns, take card payments on invoices or track time. TapTax publishes this page; the comparison uses the same rules for everyone.

Zoho Books' free plan is the cheapest option that files: 1,000 invoices a year, 50 receipt scans a month and MTD for Income Tax, quarterly updates and the final return. It is full accounting software with a free tier, so expect more set-up and a browser-first design.

Best if you are VAT-registered: Xero, QuickBooks or FreeAgent

Once you are VAT-registered, you send VAT returns under MTD for VAT as well, and software that does both saves a second subscription. Xero, QuickBooks and FreeAgent all file VAT returns and MTD for Income Tax. FreeAgent is the standout on cost if you bank with NatWest, RBS or Ulster Bank, or use Mettle: it is free for as long as you keep the account. Without that, it is £19 a month or £190 a year excluding VAT for sole traders.

QuickBooks (Intuit)

£10 + VAT/mo Sole Trader Plus, £38 Essentials(checked 7 October 2026)

• Free version: no
• Android; Apple iOS: yes
• Sole trader income: yes
• UK property income: yes
• Foreign property income: no
• Keeps digital records: yes

15/16 tax-return items ready.

HMRC MTD for Income Tax directory, scraped 2 October 2026. Feature flags are vendor-declared. Vendor site

Recurring invoices start on Essentials. 90% off for six months on 7 October 2026.

HMRC lists what each vendor declares. Feature flags, mobile-app support in particular, are vendor claims rather than verified facts, and listings change. Check with the vendor before you buy. Data: HMRC find-MTD-software service (tax.service.gov.uk), scraped 2 October 2026.

Not sure whether you need to register for VAT? The threshold is £90,000 of taxable turnover in a rolling 12 months; the VAT registration calculator checks yours, and our guide covers invoicing without a VAT number.

Invoice-only software plus separate MTD

Invoice makers such as Zervant, Invoice2go, Invoice Simple and Billdu do good invoices with card payments and estimates, but none files Making Tax Digital. At our scenario's volume, their plans cost £191.88 to £449.99 a year before you add MTD software. That combination makes sense if card payments or estimates matter most to you, and you are happy to keep two tools.

Year one against year two

Introductory discounts make the first year look cheap. On 7 October 2026 Xero and QuickBooks were both offering 90% off for six months. For our scenario on Xero Ignite at £18 a month, that is six months at £1.80 and six at £18: £118.80 excluding VAT in year one, then £216 a year after. On QuickBooks Essentials at £38 a month, year one is £250.80 excluding VAT on monthly billing, and year two £456, or £410.40 on annual billing. TapTax Starter is £49 in year one and £49 in year two.

How to decide

1. VAT-registered? Xero, QuickBooks or FreeAgent.
2. Bank with NatWest, RBS, Ulster or Mettle? FreeAgent, free.
3. Not VAT-registered and doing your own books? TapTax at £49 a year, or Zoho Books free if you are comfortable with accounting software.
4. Clients pay by card? SumUp or Square for invoicing, plus MTD software.
5. Your accountant has a preference? Use what they work in.

You can also browse every MTD product HMRC lists in our MTD software directory.

The bottom line

“Price the year you will actually have: the plan your invoice count lands on, after the discount ends.”

For a UK sole trader who is not VAT-registered, invoicing software that also files Making Tax Digital is the best value, and TapTax at £49 a year and Zoho Books free are the cheapest that do. If you are VAT-registered, Xero, QuickBooks or FreeAgent, the last free through some banks, cover both returns.

People also ask

Is Xero good invoicing software for a sole trader?

Xero’s invoicing is strong, with repeating invoices, reminders, quotes and Stripe card payments. For a sole trader sending more than 20 invoices a month it means Grow at £39 a month excluding VAT, checked 7 October 2026.

What is the cheapest invoicing software that files MTD?

Zoho Books’ free plan, and FreeAgent free through NatWest, RBS, Ulster or Mettle. Among paid software, TapTax Starter at £49 a year.

Can I switch invoicing software mid-year?

Yes. Your past quarterly updates stay with HMRC. Import your bank statement to the new software for the current tax year and carry on; keep your old invoices as records.

Do I have to charge VAT on my invoices as a sole trader?

Only if you are VAT-registered. Below the £90,000 threshold most sole traders are not, and their invoices show no VAT.