Being self-employed in the UK comes with a lot of freedom — and a lot of paperwork!
From handling invoices to tracking expenses and filing taxes (especially under HMRC’s Making Tax Digital rules), having the right accounting software is no longer optional in 2025 — it’s a necessity.

In this guide, we’ll review the best accounting software for UK self-employed professionals, freelancers, and contractors.

Why Self-Employed People Need Accounting Software

Good accounting software helps you:

• Track income and expenses automatically

• Send professional invoices

• Monitor cash flow

• Prepare for Self Assessment tax returns

• Stay compliant with HMRC (important!)

Without it, you risk missed payments, incorrect taxes, and unnecessary stress.

Best Accounting Software for Self-Employed UK (2025)

1. FreeAgent

FreeAgent is designed specifically for UK freelancers and small businesses.

Key Features:

• Automated tax calculation

• Direct HMRC Self Assessment and VAT filing

• Invoice and payment tracking

• Mileage tracking

Pricing:
Starts at around £14.50/month (first 6 months discount).

Pros:
✅ HMRC-recognized software
✅ Friendly for non-accountants
✅ Great customer support

Cons:
❌ Slightly expensive if you are just starting

2. QuickBooks Self-Employed

QuickBooks is a huge name in the accounting world and offers a version tailored for the self-employed.

Key Features:

• Automatic expense categorization

• Invoice creation

• Mileage tracking via mobile app

• Tax estimation and reminders

Pricing:
Starts at £8/month.

Pros:
✅ Easy-to-use mobile app
✅ Strong brand reliability
✅ Helps estimate tax liabilities

Cons:
❌ Limited scalability for growing businesses

3. Zoho Books

Zoho Books is a budget-friendly option with lots of advanced features.

Key Features:

• Invoicing and expense tracking

• Bank reconciliation

• Time tracking for projects

• Multi-currency support

Pricing:
Free for businesses with annual turnover <£35,000; paid plans start from £10/month.

Pros:
✅ Very affordable
✅ Feature-rich even at free tier
✅ Integrates with Zoho suite (CRM, Projects)

Cons:
❌ Setup can feel complex initially

4. Crunch

Crunch is an online accounting solution made specifically for freelancers and contractors in the UK.

Key Features:

• Easy invoicing and expense tracking

• Integrated with HMRC for VAT returns

• Dedicated accountant support on paid plans

Pricing:
Free basic plan; premium plans start at £24.50/month.

Pros:
✅ Very UK-focused
✅ Optional accountant services
✅ Good for limited companies too

Cons:
❌ More expensive if you need extra support

5. Xero

Xero is a powerful cloud-based accounting software for freelancers aiming to grow their business.

Key Features:

• Bank feeds and reconciliation

• Payroll add-ons

• Invoicing with payment links

• Project tracking

Pricing:
Starter plan at £15/month (discounted offers often available).

Pros:
✅ Professional and scalable
✅ Excellent mobile app
✅ Lots of integrations (PayPal, Stripe, etc.)

Cons:
❌ Slightly steep learning curve for beginners

What to Look for in Accounting Software

When choosing your accounting software as a self-employed UK professional, consider:

• HMRC compliance (especially for MTD for VAT and Self Assessment)

• Ease of use (do you need an accountant to help?)

• Automation (bank feeds, recurring invoices, etc.)

• Pricing and free trial options

• Mobile app availability (handy for logging expenses on-the-go)

If you’re just starting out, Zoho Books or QuickBooks might suit you.
For growing freelancers with VAT needs, FreeAgent or Xero could be a better investment.

Final Thoughts

Choosing the right accounting software in 2025 will save you hours of admin work every month — freeing you up to focus on growing your business.
With tools like FreeAgent, QuickBooks, and Zoho Books, UK freelancers and self-employed professionals have more powerful, affordable options than ever before.

Take advantage of free trials where possible — and make tax season a stress-free experience!