Best Free Accounting Software for UK Businesses (2026)

UK accounting software needs to handle VAT, Making Tax Digital, and HMRC submissions. The good news? Several excellent options are free or very affordable.

1. FreeAgent — Best for Freelancers (£9.50/mo)

Rating: ⭐ 4.2 · Price: From £9.50/mo

FreeAgent is the top choice for UK freelancers. Built-in MTD for VAT and self-assessment, bank feeds, invoicing, and expense tracking. Used by 100,000+ UK businesses. Full review →

2. Xero — Best for Growing Businesses (From £14/mo)

Rating: ⭐ 4.3 · Price: From £14/mo

Xero is the UK's most popular cloud accounting platform. Native VAT handling, MTD-compatible, bank reconciliation, invoicing, and payroll add-on. Integrates with 1,000+ apps. Full review →

3. Wave — Best Truly Free Option

Rating: ⭐ 4.0 · Price: Free (transaction fees on payments)

Wave is completely free accounting software for small businesses. Invoicing, receipt scanning, and accounting dashboard. Limited UK-specific features (no MTD), but works well for very small operations.

4. QuickBooks — Best for Established Businesses

Rating: ⭐ 4.1 · Price: From £12/mo

QuickBooks by Intuit covers MTD, VAT, payroll, and project profitability. More features than Xero but steeper learning curve. UK-specific version.

Making Tax Digital Compliance

Since April 2022, all VAT-registered UK businesses must use MTD-compatible software. Xero, FreeAgent, and QuickBooks all support MTD submissions directly to HMRC. Wave does not.

Browse all UK accounting tools on StackList.