Managing accounts, payroll, and tax in the UK is now easier thanks to cloud accounting platforms. Whether you’re a freelancer or running a small business, the right tool saves time and helps you stay compliant with HMRC.
Why You Need Accounting Software
- Automatically track expenses and income
- Send invoices and accept online payments
- Calculate VAT and submit MTD returns
- Payroll automation for employees
Top Accounting Tools in the UK (2025)
1. QuickBooks UK
- User-friendly dashboard
- Payroll, VAT, invoicing built-in
- Starts at £12/month
2. Xero
- Ideal for businesses with multiple employees
- Multi-currency support
- Partnered with many UK banks
3. FreeAgent
- Free with a NatWest business account
- Great for freelancers and contractors
- HMRC-recognised
4. Sage Business Cloud
- Long-standing UK brand
- Suitable for both product and service-based businesses
- Scalable as your business grows
Key Features to Look For
- VAT and MTD (Making Tax Digital) support
- Integration with your bank account
- Reporting and forecasting tools
- App ecosystem for extensions
Final Thoughts
QuickBooks and Xero are top picks for most businesses. Freelancers can benefit from FreeAgent, especially with NatWest. Get started early and keep your records clean—tax season will be much easier.