Is there genuinely free accounting software for UK businesses?

Yes — Tide offers a permanently free banking and accounting plan with no time limit. For businesses that need full MTD compliance and payroll, Sage's 3-month free trial (from £1/month) is the most generous near-free option. Xero offers a 30-day full-access trial. For basic needs, Tide's free plan covers invoicing and expense tracking at £0/month forever.

Is UK accounting software cloud-based and available online?

Yes — all three tools on this page are fully cloud-based. Tide, Sage, and Xero are online accounting platforms you access from any browser on any device — laptop, tablet, or phone. There's no software to install. Cloud-based access means your books are always up to date, accessible from anywhere, and automatically backed up. For UK businesses this also makes it easier to collaborate with your accountant in real time.

What is the best free cloud accounting software for UK sole traders?

For UK sole traders wanting free cloud-based accounting: Tide is the best free option — open a business account and track income and expenses at £0/month online. Sage offers the longest free trial (3 months) with full cloud access including MTD for VAT and payroll. For Making Tax Digital (MTD for ITSA), which affects sole traders earning £50k+ from April 2026, Sage or Xero are the safest cloud-based choices.

Does free accounting software handle UK VAT and Making Tax Digital?

It depends on the tool. Tide's free plan handles basic VAT tracking but full MTD-compliant VAT submissions require a paid plan. Sage and Xero's free trials include full MTD for VAT support — meaning you can test full compliance free before committing to a paid plan. If you're VAT-registered, Sage's 3-month free trial gives you the most time to test a fully MTD-compliant cloud platform at minimal cost.

How long are the free trials for UK accounting software?

Free trial lengths in the UK: Xero offers 30 days free with full cloud access. Sage Accounting offers 90% off for 3 months (from £1/month) — the longest near-free access to a full cloud platform. Tide's plan is free forever at a basic level. Most free trials don't require a credit card, making it easy to test cloud accounting before committing.

What free online accounting software is best for small UK businesses?

Tide is the best permanently free online option — a cloud-based business bank account with bookkeeping and invoicing at £0/month. For businesses that need VAT returns, MTD compliance, and full double-entry bookkeeping online, Sage's 3-month free trial gives you the most complete cloud platform at the lowest initial cost.

Can free accounting software do self-assessment in the UK?

Most free UK cloud accounting tools provide the income and expense tracking you need for self-assessment, but don't directly submit your return to HMRC. Sage (after trial) and Xero both integrate with HMRC self-assessment workflows. For sole traders on a tight budget, Tide for daily online bookkeeping plus a one-off accountant for year-end filing is a common and cost-effective approach.

Free Accounting Software UK 2026 — Cloud-Based, MTD Compliant

Best Free Cloud Accounting Software — UK 2026

Written by Raj

Last updated: 26 August, 2026

Limited Offer — Get 3 months free on Sage Accounting. No contracts, no hidden fees.

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100% Free — Cloud-Based

Tide

Free Trial

Free Business Account — Banking & Accounting

Excellent

9.5

Start for Free

3 Months FREE

Sage Accounting

Free Trial

Get 3 Months Free — Save up to £177

Excellent

9.8

Get 3 Months Free

Xero

Free Trial

30-Day Free Trial — No Credit Card

Excellent

9.7

Start Free Trial

Best Value — 3 Months Free

Get Sage Accounting free for 3 months

MTD compliant · Payroll included · Sage Copilot AI · No contracts

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Free Cloud-Based Accounting Software for UK Businesses 2026 — MTD Compliant, No Contract

Best Free — Cloud & Mobile

Tide

Free Forever — Cloud Banking & Bookkeeping for UK Businesses

4.5

(18450)

Top features

100% free — £0/month forever
Cloud-based — access online, any device
Business banking + bookkeeping in one
Online invoicing & expense tracking

Pricing

Free trial available. Free business bank account. Always £0 on the free plan.

Tide features: 100% free — £0/month forever

Cloud-based — access online, any device

Business banking + bookkeeping in one

Online invoicing & expense tracking

Real-time tax estimates, no contract

Tide pricing: Free trial available. Free business bank account. Always £0 on the free plan.

Used by:

Start for Free Book Demo

"Tide helps me track expenses, analyse performance, and make smarter business decisions — for free."

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Best Free Trial — Full Cloud Platform

Sage Accounting

3 Months FREE — Cloud Accounting, MTD, Payroll Included

4.5

(18450)

Top features

3 months free — up to £177 saved
Cloud-based — access from any device, anywhere
MTD VAT filing to HMRC
Payroll included — no add-on

Pricing

Free trial available. 3 months FREE, then from £18/month (excl. VAT). Cancel anytime.

Sage Accounting features: 3 months free — up to £177 saved

Cloud-based — access from any device, anywhere

MTD VAT filing to HMRC

Payroll included — no add-on

No long-term contracts

Sage Accounting pricing: Free trial available. 3 months FREE, then from £18/month (excl. VAT). Cancel anytime.

Used by:

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"Sage keeps bookkeeping structured and the reports are clear and reliable."

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Cloud-Based — 30-Day Free Trial

Xero

30-Day Free Trial — Full Cloud Access, No Credit Card

4.5

(18450)

Top features

30-day free trial — full cloud access
Cloud-based — access online from any device
MTD VAT returns filed to HMRC
Live UK bank feeds

Pricing

Free trial available. 30-day free trial. Plans from £16/month — no contract.

Xero features: 30-day free trial — full cloud access

Cloud-based — access online from any device

MTD VAT returns filed to HMRC

Live UK bank feeds

No credit card needed to start

Xero pricing: Free trial available. 30-day free trial. Plans from £16/month — no contract.

Used by:

Start Free Trial Book Demo

"Xero is one of the best cloud accounting tools — easy to use, quick to set up from anywhere."

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Free vs Paid — What You Actually Get

All three are cloud-based. Comparing free plans and free trial options from top UK accounting tools.

Feature	Our PickSage (3mo Free)	Xero (30d Trial)	Tide (Always Free)
Cost After Trial	£18/mo	£16/mo	£0/mo
Cloud-Based / Online
MTD VAT Filing
Payroll Included
Mobile App
Built-in Bank Account
AI Assistant
Invoicing
Telephone Support
No Contract

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Frequently Asked Questions

Ready when you are

Limited Offer — Get 3 months free on Sage Accounting. No contracts, no hidden fees.

4.5 · Excellent

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Free business bank account. Always £0 on the free plan.

Disclaimer: This research has been collated from a variety of authoritative sources. We welcome your feedback at [email protected].

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Free Accounting Software UK 2026 — Cloud-Based & MTD Ready

Frequently Asked Questions

Limited Offer — Get 3 months free on Sage Accounting. No contracts, no hidden fees.