Self-employed accounting software for UK sole traders
Xero's accounting software for self-employed UK sole traders and freelancers handles bookkeeping admin, VAT returns, and Self Assessment from any device so you can focus on the work. Submit to HMRC directly and stay MTD-compliant – 90% of customers agree Xero helps them stay compliant.
Set up your self-employed accounting software in three simple steps
Get going with Xero quickly, especially with Xero’s personalised 1:1 set-up help.
Sign up to Xero's accounting software free trial
Sign up for a Xero plan straight away or start a 30-day free trial, then choose the plan that suits your business.
Connect your UK bank account and automate your books
Connect your UK bank to Xero via Open Banking and let Xero import transactions automatically.
Invite your accountant into Xero to collaborate
Add your accountant to Xero at no extra cost. Add your accountant to Xero at no extra cost.
UK tax compliance built into your accounting
Xero is HMRC-recognised for Making Tax Digital (MTD). Submit VAT and MTD for Income Tax returns securely and directly to HMRC from Xero, and securely capture and organise your bills, receipts and other business documents in Xero. Stay on top of VAT and MTD for Income Tax obligations with seamless su
- Xero supports CIS scheme obligations to HMRC and subcontractors, giving contractors an easy way to manage CIS deductions in Xero.
- 90% of UK customers agree Xero helps them stay compliant (Xero survey of 858 SBs in the UK, May 2024).
Cut hours off your bookkeeping
Bank feeds pull your transactions in via Open Banking automatically – no manual entry needed. Hubdoc, included in all Xero business plans, automatically extracts information from receipts and bills and creates transactions in Xero – helping keep your bookkeeping current and accurate.
- Use the Xero Accounting app to snap receipts with your mobile. Hubdoc extracts the details automatically – no manual filing needed.
- 4 in 5 Xero customers say they save 6 hours monthly by eliminating manual data entry (Xero survey of 373 SBs globally using Xero, October 2025).
Create invoices and collect payments fast
Get paid up to twice as fast! Create customised invoices and let clients pay their way. Accept Stripe, GoCardless, GoCardless Instant bank pay, Klarna, Pay by Bank, SMS invoicing, or Tap to Pay on Android and iOS.
- Create and send quotes and invoices from the Xero Accounting app for mobile – ideal for freelancers and sole traders on the move.
- Get paid up to twice as fast when customers can make convenient online payments.
Track expenses and claim more tax deductions
Track business expenses separately from personal spending. Hubdoc automatically extracts information from receipts and creates transactions in Xero. Use the mobile app to upload receipt photos and capture receipts on the go. Your expense data is included in Xero reports.
- Be ready for tax time with well-organised expense records and financial reports in Xero.
- 91% of customers agree Xero is easy to use. (Xero survey of 2634 SBs in UK, AU, and US, May–June 2024).
All plans to suit your business
Ignite
for the first 6 months
Then £16 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 (optional)
- Auto-reconcile transactions (optional)
- 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
Grow
for the first 6 months
Then £37 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
- Auto-reconcile transactions (Beta)
- 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
Comprehensive
for the first 6 months
Then £50 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
- Auto-reconcile transactions (Beta)
- 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
Ultimate
for the first 6 months
Then £65 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
- Auto-reconcile transactions (Beta)
- 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
Know where your business stands – right now
Xero brings all your accounting data into one clear set of reports. Track profit and loss, cash flow forecasts, and business performance. Share them with your accountant directly. Track your business's finances and monitor your performance with Xero reports.
- Unlimited general users means your accountant can access your reports at no extra cost – helping with tax time and everything in between.
- 88% of customers agree Xero helps improve financial visibility. (Xero survey of 2,634 SBs, May–June 2024).
Extend Xero with over 1000 connected apps
Customise Xero with more than 1,000 connected apps. Connect the tools you already use, discover new apps to solve everyday challenges, or build your own connection. Connect the tools you already use and discover new ones – or build your own.
- All Xero plans include Hubdoc – capture documents and create transactions automatically. Less manual entry from Day 1.
- 26% average productivity boost for Xero users with app integrations (Xero survey, 266 SBs globally, Oct 2025).
FAQs on self-employed accounting software UK
Legally, no – but freelance accounting software makes a significant practical difference.
Stay on top of VAT and MTD for Income Tax obligations with seamless submissions to HMRC, and use Xero tools like Hubdoc to create transactions without manual data entry.
Xero automates these tasks – from bank reconciliation to expense categorisation – so you spend less time on admin and more time on your business. Xero customers report saving 6 hours monthly by eliminating manual data entry.
Learn more about MTD requirements on the HMRC website
Legally, no – but freelance accounting software makes a significant practical difference.
Stay on top of VAT and MTD for Income Tax obligations with seamless submissions to HMRC, and use Xero tools like Hubdoc to create transactions without manual data entry.
Xero automates these tasks – from bank reconciliation to expense categorisation – so you spend less time on admin and more time on your business. Xero customers report saving 6 hours monthly by eliminating manual data entry.
Learn more about MTD requirements on the HMRC website
Managing UK tax as a sole trader means keeping on top of MTD, VAT returns, and Self Assessment. Xero makes all of this straightforward.
It's HMRC-recognised and built for UK tax obligations. Connect to your bank via Open Banking so transactions import automatically, submit MTD-compliant VAT returns directly from Xero, and keep your Self Assessment records organised throughout the year. If you work in construction, Xero supports CIS scheme obligations to HMRC and subcontractors too.
Xero is the most loved small business accounting software in the UK. Over 200,000 certified accountants and bookkeepers use it, so you'll find expert local support through the Xero Advisor Directory.
For UK sole traders, accounting software that makes VAT, MTD for Income Tax, and other tax obligations straightforward can save time and simplify admin.
Managing UK tax as a sole trader means keeping on top of MTD, VAT returns, and Self Assessment. Xero makes all of this straightforward.
It's HMRC-recognised and built for UK tax obligations. Connect to your bank via Open Banking so transactions import automatically, submit MTD-compliant VAT returns directly from Xero, and keep your Self Assessment records organised throughout the year. If you work in construction, Xero supports CIS scheme obligations to HMRC and subcontractors too.
Xero is the most loved small business accounting software in the UK. Over 200,000 certified accountants and bookkeepers use it, so you'll find expert local support through the Xero Advisor Directory.
For UK sole traders, accounting software that makes VAT, MTD for Income Tax, and other tax obligations straightforward can save time and simplify admin.
Yes. Xero helps you track business admin as you go, helping keep your records accurate and making tax preparation simpler at year-end. You can generate profit and loss reports and share them directly with your accountant, and your expense tracking ensures you've captured all allowable deductions.
Xero is HMRC-recognised for Making Tax Digital (MTD) and helps you keep digital records throughout the year.
For step-by-step guidance, visit HMRC's Self Assessment page
Yes. Xero helps you track business admin as you go, helping keep your records accurate and making tax preparation simpler at year-end. You can generate profit and loss reports and share them directly with your accountant, and your expense tracking ensures you've captured all allowable deductions.
Xero is HMRC-recognised for Making Tax Digital (MTD) and helps you keep digital records throughout the year.
For step-by-step guidance, visit HMRC's Self Assessment page
Yes. Xero is HMRC-recognised software for MTD for VAT. It keeps your VAT records digital throughout the year and lets you submit VAT returns directly to HMRC from within Xero.
Xero also has MTD for Income Tax filing (in beta), subject to registration and eligibility. This allows quarterly updates and a final declaration.
Yes. Xero is HMRC-recognised software for MTD for VAT. It keeps your VAT records digital throughout the year and lets you submit VAT returns directly to HMRC from within Xero.
Xero also has MTD for Income Tax filing (in beta), subject to registration and eligibility. This allows quarterly updates and a final declaration.
It varies. Xero offers three business plans to suit different stages of your business. All plans include:
- a 30-day free trial
- Hubdoc for automatic document capture.
Visit the Xero pricing page
It varies. Xero offers three business plans to suit different stages of your business. All plans include:
- a 30-day free trial
- Hubdoc for automatic document capture.
Visit the Xero pricing page
Yes. Xero connects to UK banks via Open Banking, pulling in your transactions automatically so there's no need for manual entry. Once connected, Xero suggests transaction matches to make bank reconciliation fast. Set up the connection from within your Xero account by adding your bank account and following the prompts to connect.
Find out more about Open Banking and Xero bank feeds
Yes. Xero connects to UK banks via Open Banking, pulling in your transactions automatically so there's no need for manual entry. Once connected, Xero suggests transaction matches to make bank reconciliation fast. Set up the connection from within your Xero account by adding your bank account and following the prompts to connect.
Find out more about Open Banking and Xero bank feeds
Yes. Xero supports CIS scheme obligations to HMRC and subcontractors, so contractors and tradespeople can manage CIS within their self-employment accounting software.
For full details on CIS requirements, visit HMRC's Construction Industry Scheme guidance
Yes. Xero supports CIS scheme obligations to HMRC and subcontractors, so contractors and tradespeople can manage CIS within their self-employment accounting software.
For full details on CIS requirements, visit HMRC's Construction Industry Scheme guidance
Definitely. Use the Xero Accounting app on your mobile to capture receipt photos on the go. Hubdoc extracts information from documents and creates transactions in Xero. Business expenses are organised to make it easier to prepare Self Assessments, making it straightforward to identify allowable deductions.
For HMRC-approved mileage rates, see HMRC’s expenses and benefits guidance
Definitely. Use the Xero Accounting app on your mobile to capture receipt photos on the go. Hubdoc extracts information from documents and creates transactions in Xero. Business expenses are organised to make it easier to prepare Self Assessments, making it straightforward to identify allowable deductions.
For HMRC-approved mileage rates, see HMRC’s expenses and benefits guidance
Yes. Xero includes unlimited general users at no extra cost, so you can invite your accountant or bookkeeper to access your accounts for their assistance at any time. Xero is the leading software for enabling collaboration with clients.
FInd a Xero-certified professional through the Xero advisor directory – searchable by location and services offered.
Yes. Xero includes unlimited general users at no extra cost, so you can invite your accountant or bookkeeper to access your accounts for their assistance at any time. Xero is the leading software for enabling collaboration with clients.
FInd a Xero-certified professional through the Xero advisor directory – searchable by location and services offered.
Bookkeeping software records your daily transactions: invoicing, expense tracking, and bank reconciliation. But accounting software also covers financial reporting, tax compliance, Self Assessment preparation, and business insights.
Xero does both. You get the automation that keeps records accurate, and accounting features that give you a complete picture of your finances. For example, Xero gives you VAT returns, financial reports, HMRC integration, and much more.
Bookkeeping software records your daily transactions: invoicing, expense tracking, and bank reconciliation. But accounting software also covers financial reporting, tax compliance, Self Assessment preparation, and business insights.
Xero does both. You get the automation that keeps records accurate, and accounting features that give you a complete picture of your finances. For example, Xero gives you VAT returns, financial reports, HMRC integration, and much more.
Get expert help and collaboration with Xero
Xero gives you 24/7 expert support and 1:1 set-up assistance, and a network of Xero-certified professionals.
24/7 expert support and 1:1 set-up assistance
Get round-the-clock support from Xero experts, with personalised 1:1 onboarding to get you set up fast.
Start your free trial of Xero's self-employed accounting software
Find a Xero-certified accountant or advisor
Find a Xero-certified advisor through the Xero advisor directory – filtered by location and speciality.
Xero: trusted by millions, loved in the UK
Xero is the most loved small business accounting software in the UK.
Start using Xero for free
Access Xero features for 30 days, then decide which plan best suits your business.
Explore useful features to run your business
Xero’s online accounting software is designed to make life easier for small businesses – anywhere, any time.
