Is there genuinely free accounting software for UK businesses?

Tide offers a permanently free banking and accounting plan for UK businesses — basic invoicing, receipt storage, and expense categorisation with no monthly fee. Sage Accounting and Xero are not free permanently but both offer free trials (Sage currently offers 90% off for 3 months, from £1/month). For basic needs, Tide's free plan or HMRC's free tools cover the essentials.

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

Free-tier accounting tools in the UK vary on VAT/MTD support. Tide's free plan handles basic VAT tracking but full MTD-compliant VAT submissions may require a paid plan. Sage and Xero's free trials include full MTD for VAT support — meaning if you're VAT-registered, you'll likely need a paid plan after the trial. Always confirm MTD compliance before choosing a free tool.

How long are the free trials for UK accounting software?

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

What's the best free accounting software for a small UK business?

Tide is the best permanently free option for UK small businesses — it combines a business bank account with invoicing and basic accounting at no monthly cost. For businesses that need VAT returns, MTD compliance, and full double-entry bookkeeping, Sage's 3-month 90% off offer (from £1/month) is effectively the best value near-free route to professional accounting software.

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

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

What should I look for in free UK accounting software?

Key features to check in any free UK accounting tool: (1) MTD for VAT compliance if you're VAT-registered; (2) Bank reconciliation — does it connect to your UK bank account?; (3) Invoice creation and payment tracking; (4) Expense and receipt capture; (5) What's the cost after the free period? Many 'free' tools have limited features that force you to upgrade. Tide offers the most complete permanently free tier for UK businesses.

Best Free Accounting Software UK 2026

Best Free Accounting Tools for UK Businesses

Written by Raj

Last updated: 16 June, 2026

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100% Free

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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Best Free & Low-Cost Accounting Software for UK Businesses 2026

Best Truly Free

Tide

Free Forever — Banking + Bookkeeping Combined

4.5

(18450)

Top features

100% free to start
Business banking included
Invoicing & expense tracking
Real-time tax estimates

Pricing

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

Tide features: 100% free to start, Business banking included, Invoicing & expense tracking, Real-time tax estimates, No monthly fee

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

Sage Accounting

3 Months FREE — Save Up to £177

4.5

(18450)

Top features

3 months free — up to £177 saved
MTD VAT filing to HMRC
Payroll included — no add-on
Sage Copilot AI assistant

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, MTD VAT filing to HMRC, Payroll included — no add-on, Sage Copilot AI assistant, 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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Best Paid Option

Xero

30-Day Free Trial — No Credit Card Required

4.5

(18450)

Top features

30-day free trial
MTD VAT returns
Live bank feeds
Mobile invoicing

Pricing

Free trial available. 30-day free trial. Plans from $20/month — no contract.

Xero features: 30-day free trial, MTD VAT returns, Live bank feeds, Mobile invoicing, No credit card needed

Xero pricing: Free trial available. 30-day free trial. Plans from $20/month — no contract.

Used by:

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

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Free vs Paid — What You Actually Get

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	$20/mo	£0/mo
MTD VAT Filing	✓	✓	—
Payroll Included	✓	—	—
Built-in Bank Account	—	—	✓
AI Assistant	✓	—	—
Invoicing	✓	✓	✓
Telephone Support	✓	—	—
No Contract	✓	✓	✓

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Frequently Asked Questions

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

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Best Free Accounting Software in the UK for 2026

Frequently Asked Questions