Self-employed accounting software that tames tax admin
Working for yourself means wearing every hat. Keep your books tidy as you go, send Making Tax Digital (MTD) updates to HMRC, and win back hours for the work you love.
How Xero helps when you work for yourself
Here's how Xero keeps your tax and records in order while you focus on paying clients.
Stay on top of tax
Track admin as you go and Xero helps fill in your tax returns, cutting manual work and helping keep records accurate.
Submit securely to HMRC
Send VAT returns and MTD for Income Tax updates to HMRC (Income Tax in beta, subject to registration and eligibility).
Capture your data automatically
Connect your bank for automated feeds, then snap or upload bills and receipts and Xero pulls out the details.
Join over 5 million customers using Xero
Prepare for MTD and Self Assessment
Xero is built for sole traders: it connects to HMRC and keeps records ready for Self Assessment. Send MTD for Income Tax quarterly updates and final declarations (beta, subject to registration and eligibility). In a May 2024 Xero survey, 90% of UK customers agreed Xero helps them stay compliant.* *Source: Xero survey of 858 UK small businesses, May 2024.
- Submit VAT returns directly to HMRC
- Manage your Construction Industry Scheme (CIS) obligationsobligations
- Keep digital records all year round
Keep your books tidy automatically
When you’re out on jobs all day, Xero keeps your records up to date in the background. Bank transactions flow in automatically, and Hubdoc captures the details from your bills and receipts. Use a separate business bank account to keep work spending apart from personal.
- Automated bank feeds
- Connect your business bank account and transactions arrive in Xero automatically, ready to reconcile.
- Snap and capture receipts
- Take a photo of a receipt or upload a bill, and Hubdoc picks out the key details for you.
Want to spend less time chasing payments?
Send customised quotes and invoices that look professional, and let automated reminders handle the follow-up. Give customers more ways to pay online, so it’s easier for them to settle up!
- Send invoices from your phone after each job
- Accept online payments straight from the invoice
- Set up automatic payment reminders
Know where your business stands at a glance
Real-time reports show your income and spending whenever you check in. Xero includes unlimited general users at no extra cost, so your accountant can join you. The Xero Simple plan is built for non-VAT businesses, sole traders, and landlords, and it supports MTD for Income Tax.
- Real-time reports
- See your profit and loss and cash flow at a glance, then plan your next move with confidence.
- Invite your accountant
- Give your accountant or bookkeeper access to the same live numbers, so their advice reflects what's happening now.
Run your admin on the Xero Accounting app
Sort your paperwork in the gaps between jobs. The Xero Accounting app lets you invoice clients and attach files to transactions from your phone, then get straight back to work.
- Take a photo in the Hubdoc mobile app and it captures the details, ready to publish to Xero.
Related solutions for self-employed people
Bank reconciliation
Match bank transactions to your records in a few clicks, so your books stay accurate.
Invoicing software
Create and send professional invoices, then track who's paid.
Expense management
Capture business spending as it happens and keep your bills and receipts organised.
Connect payment, timesheet, and receipt apps
Choose from hundreds of third-party integrations on the Xero App Store to link the tools you rely on for work. Your data syncs with Xero, so you spend less time copying details between systems.
Browse integrations on the Xero App Store
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FAQs on self-employed accounting software
Not always, but if MTD for Income Tax applies to you, you’ll need compatible software. With Xero, you can connect to HMRC and send MTD for Income Tax quarterly updates (beta, subject to registration and eligibility). You can check if MTD for Income Tax applies to you on GOV.UK.
Not always, but if MTD for Income Tax applies to you, you’ll need compatible software. With Xero, you can connect to HMRC and send MTD for Income Tax quarterly updates (beta, subject to registration and eligibility). You can check if MTD for Income Tax applies to you on GOV.UK.
Yes. Xero is HMRC-recognised and connects to HMRC for MTD for VAT, so you can submit VAT returns directly to HMRC. You can also send MTD for Income Tax quarterly updates and your final declaration from Xero (beta, subject to registration and eligibility). GOV.UK lists the software HMRC accepts for MTD for Income Tax.
Yes. Xero is HMRC-recognised and connects to HMRC for MTD for VAT, so you can submit VAT returns directly to HMRC. You can also send MTD for Income Tax quarterly updates and your final declaration from Xero (beta, subject to registration and eligibility). GOV.UK lists the software HMRC accepts for MTD for Income Tax.
Absolutely. Xero keeps your income and expenses organised all year, and your accountant can use your Xero figures to prepare your Self Assessment return. Run a profit and loss report whenever you need it, or share your books with your accountant to review. GOV.UK explains who needs to file a Self Assessment return.
Absolutely. Xero keeps your income and expenses organised all year, and your accountant can use your Xero figures to prepare your Self Assessment return. Run a profit and loss report whenever you need it, or share your books with your accountant to review. GOV.UK explains who needs to file a Self Assessment return.
HMRC expects you to keep records that include:
- sales and other income
- business expenses
- VAT records, if you're VAT- registered
Xero stores these records digitally, so they're organised and backed up in one place. GOV.UK sets out what to keep and for how long.
HMRC expects you to keep records that include:
- sales and other income
- business expenses
- VAT records, if you're VAT- registered
Xero stores these records digitally, so they're organised and backed up in one place. GOV.UK sets out what to keep and for how long.
Not necessarily. Xero handles everyday admin like invoicing and bank reconciliation, and an accountant or bookkeeper can add advice when you need it. Xero includes unlimited general users at no extra cost, so your advisor can work alongside you in real time. You can find a certified advisor near you in the Xero advisor directory.
Not necessarily. Xero handles everyday admin like invoicing and bank reconciliation, and an accountant or bookkeeper can add advice when you need it. Xero includes unlimited general users at no extra cost, so your advisor can work alongside you in real time. You can find a certified advisor near you in the Xero advisor directory.
Definitely. Snap receipts with the Hubdoc mobile app, check your spending, and reconcile transactions from your phone. Hubdoc captures the details from receipts and bills, so your records stay complete. See what you can do on the Xero Accounting app.
Definitely. Snap receipts with the Hubdoc mobile app, check your spending, and reconcile transactions from your phone. Hubdoc captures the details from receipts and bills, so your records stay complete. See what you can do on the Xero Accounting app.
For most sole traders who aren't VAT-registered, the Xero Simple plan is the right fit. It's built for non-VAT businesses, sole traders, and landlords, supports MTD for Income Tax and includes Hubdoc, unlimited general users, and financial reports. Compare Xero plans and what each includes to find the right match.
For most sole traders who aren't VAT-registered, the Xero Simple plan is the right fit. It's built for non-VAT businesses, sole traders, and landlords, supports MTD for Income Tax and includes Hubdoc, unlimited general users, and financial reports. Compare Xero plans and what each includes to find the right match.
Certainly. Xero supports your Construction Industry Scheme (CIS) obligations to HMRC and to your subcontractors, so you can keep deductions and returns on track. GOV.UK explains how CIS works for contractors and subcontractors.
Certainly. Xero supports your Construction Industry Scheme (CIS) obligations to HMRC and to your subcontractors, so you can keep deductions and returns on track. GOV.UK explains how CIS works for contractors and subcontractors.
Get one month free
Purchase any Xero plan, and we will give you the first month free.
Plans for growing businesses
Ignite
for the first 6 months
Then £18 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Enter 10 bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for £0.20 per payment††
- Payroll for £1.50 per person
- 30 day cash flow forecast
- Visualise performance with basic graphs
- Company accounts and tax (optional £120 excl. Vat billed annually)
Grow
for the first 6 months
Then £39 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 5 payments
- Payroll for 1 person
- 60 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 1 user
- Company accounts and tax (optional £120 excl. Vat billed annually)
Comprehensive
for the first 6 months
Then £55 per month
Optimise profitability - tailor your insights for greater control.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 10 payments
- Payroll for 5 people
- 90 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 5 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Ultimate
for the first 6 months
Then £70 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 15 payments
- Payroll for 10 people
- 180 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 10 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Track time and costs for projects for 10 users
- Analyse KPIs and ratios
- Benchmark against the industry
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Not VAT registered? See plans for simpler business needs.View plans
Explore useful features to run your business
Xero’s online accounting software is designed to make life easier for small businesses – anywhere, any time.
