Best accounting software in the UK (October 2026)
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Accounting tools for businesses in the UK, ranked on Making Tax Digital, pricing in GBP and free plans.
The ranking
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1
Zoho Books
by Zoho · Accounting softwareBest free start with Making Tax DigitalCloud accounting with local-currency pricing, country tax compliance and a free plan for small businesses in each edition.
Making Tax DigitalGBP pricingFree planPros
- MTD for VAT and Income Tax, including the Free plan
- Priced in GBP
- Free plan for all business types
Cons
- No drawbacks found in our data
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2
Xero
by Xero · Accounting softwareStrong on Making Tax DigitalCloud accounting from New Zealand with bank feeds, a large app marketplace and country editions.
Making Tax DigitalGBP pricingFree planPros
- MTD for Income Tax ready; VAT returns to HMRC on all plans
- Priced in GBP
- Local company with support in the UK
Cons
- No free plan
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3
Sage Accounting
by Sage · Accounting softwareStrong on Making Tax DigitalSage's cloud accounting for small businesses, with VAT calculation and returns, sold in local editions.
Making Tax DigitalGBP pricingFree planPros
- Making Tax Digital compatible
- Priced in GBP
- Local company with support in the UK
Cons
- No free plan
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4
FreeAgent
by FreeAgent · Accounting softwareStrong on Making Tax DigitalUK accounting priced by business type, recognised by HMRC for MTD VAT returns, with payroll for limited companies.
Making Tax DigitalGBP pricingFree planPros
- HMRC-recognised for MTD VAT returns
- Priced in GBP
- Local company with support in the UK
Cons
- No free plan
Not yet ranked
These products may sell in the UK, but we have not confirmed enough data to score them. They join the ranking automatically once we do.
- QuickBooks Online: Intuit's cloud accounting with Simple Start, Essentials, Plus and Advanced plans, sold in local editions in some countries. Not ranked yet: pricing in the UK still to be checked. Check on QuickBooks Online's site
Compare all in a table
| Rank | Product | Score | Cheapest paid plan (GBP/month) | Free plan | Making Tax Digital | Priced in GBP | Action |
|---|---|---|---|---|---|---|---|
| 1 | Zoho Books | 100 | 12 | Yes | Yes | Yes | Visit site |
| 2 | Xero | 80 | 18 | No | Yes | Yes | Visit site |
| 3 | Sage Accounting | 80 | 20 | No | Yes | Yes | Visit site |
| 4 | FreeAgent | 80 | 10 | No | Yes | Yes | Visit site |
Tap a column heading to sort; the rank column keeps our order. Prices in other currencies converted at 0.7557 GBP per USD (2026-10-09).
How to choose accounting software in the UK
Making Tax Digital first. 4 of the 4 ranked tools confirm Making Tax Digital support. Check which plan includes it: some tools list it only from their second plan up.
Price in GBP. 4 of 4 price in local currency; the rest charge US dollars, so your cost moves with the exchange rate.
Free plans have limits. Free plans usually cap revenue, invoices or users. Compare the plan you will need in a year, not just today.
Score parts: Making Tax Digital, Priced in GBP, Free plan, Published price. Commissions are never part of it. Full method.
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