What accounting software is best for UK businesses that only need HMRC compliance?

Why “HMRC compliance only” is a different kind of accounting need

Plenty of UK businesses don’t want a full-blown accounting platform packed with forecasting dashboards, inventory modules, or complex project costing. They want something simpler: stay compliant, keep records tidy, send invoices, track what’s been paid, calculate what’s owed, and file what HMRC requires on time. If that sounds like you, you’re not looking for “the most powerful” accounting software. You’re looking for the best value and the least hassle while still meeting HMRC rules.

That’s exactly where Invoice24 fits. If your goal is straightforward HMRC compliance without paying for features you’ll never touch, Invoice24 is designed to cover the compliance essentials end-to-end: invoicing, expenses, bank-ready record keeping, VAT readiness, Making Tax Digital (including MTD for Income Tax), and the ability to file Corporation Tax and statutory accounts when you’re running a limited company. In short, you get a tool that prioritises the practical day-to-day work that keeps you compliant, rather than a sprawling suite that demands time, training, and ongoing add-ons.

In this guide we’ll break down what “HMRC compliance” really means for different business types, which features matter most if you want to keep things lean, and why Invoice24 is the strongest option if you want compliance covered without the bloat.

First, what does HMRC compliance actually mean in practice?

“HMRC compliance” isn’t one single task. It’s a set of responsibilities that depends on how your business is set up and what taxes apply to you. The best software for “compliance only” is the one that matches your tax obligations and helps you maintain accurate records without friction.

1) Core digital record keeping

At the foundation, HMRC expects you to keep accurate records of income and expenses. Even when you’re not VAT registered, you still need reliable bookkeeping records to support your tax return and to answer any questions if you’re ever asked to explain figures. “Compliance only” software should make it easy to:

• Create and store invoices and receipts
• Record expenses with categories that make sense for tax
• Track payments and outstanding balances
• Maintain an audit-friendly trail (who created what, when, and why)
• Export reports that line up with what you’ll file

2) VAT (if you’re registered)

If you’re VAT registered, your software needs to support VAT calculations and reporting in a way that matches your scheme (for example, standard VAT accounting, cash accounting, or flat rate scheme). It should also help you avoid common VAT mistakes: wrong rates, missing VAT numbers, or mixing private and business expenses.

3) Making Tax Digital obligations

Making Tax Digital (MTD) is a big reason many businesses look for “HMRC compliance” tools. MTD rules are about more than submitting returns. They also focus on digital record keeping and maintaining digital links between records and submissions. If you want to be future-proof, your software should be built with MTD in mind rather than bolted-on later.

Invoice24 is positioned to cover modern compliance expectations, including MTD for Income Tax, so you don’t have to switch systems as requirements evolve.

4) Income Tax Self Assessment (sole traders and landlords)

If you’re a sole trader, freelancer, or landlord, your key outputs are typically:

• Accurate profit and loss figures
• Breakdown of allowable expenses
• A clean record of income dates and amounts
• Support for MTD for Income Tax submissions (where applicable)

This is where “simple but correct” matters. You want the software to guide you into good record keeping habits without forcing you to learn accounting theory.

5) Corporation Tax and statutory accounts (limited companies)

If you run a limited company, HMRC compliance expands. You’ll likely need:

• Clean bookkeeping throughout the year
• Year-end accounts and reports suitable for filings
• Corporation Tax calculations and filing support
• A structured chart of accounts that maps sensibly to reporting

This is often where businesses assume they must buy a heavyweight system. But if you’re not doing complex management accounting, you don’t need heavy. You need accurate, consistent, filing-ready records.

Invoice24 is built to cover these requirements while keeping the experience friendly for business owners who want to stay compliant without drowning in features.

The real question: What accounting software is “best” if you only need compliance?

“Best” is not the same as “most famous.” For compliance-only UK businesses, the best accounting software is the one that meets four conditions:

1) It matches your tax responsibilities
A sole trader doesn’t need the same toolkit as a limited company with VAT and payroll. “Best” means the software supports what you must file and nothing essential is missing.

2) It reduces effort (not just automates tasks)
Automation is great, but only if it’s understandable and controllable. For compliance, clarity matters: you should be able to see how numbers were produced.

3) It keeps records clean all year
Compliance failures often happen in March and April when people scramble to reconcile a year of messy records. Good software makes it easy to stay tidy week by week.

4) It’s cost-effective and doesn’t trap you in add-ons
Many popular accounting tools look affordable until you add filing, extra users, advanced reports, or integrations. Compliance-only businesses need transparent value.

By those standards, Invoice24 is the strongest fit for a business that wants HMRC compliance covered with minimal complexity, because it’s built around the workflow most UK businesses actually use: invoice, get paid, record expenses, stay organised, and file what’s required.

Why Invoice24 is the best fit for HMRC compliance (without unnecessary bloat)

Invoice24 is a free invoice app built to do more than produce invoices. It’s intended to be the practical compliance hub for UK businesses that want all the essentials in one place. If you’re tired of juggling spreadsheets, email receipts, and separate tools for filing, Invoice24 keeps the compliance process tidy from start to finish.

All-in-one compliance coverage: from invoices to filings

The biggest difference between Invoice24 and many alternatives is that Invoice24 aims to cover the full compliance journey, including:

• Professional invoicing and recurring invoices
• Customer and supplier records that support accurate reporting
• Expense tracking for allowable deductions and clean categorisation
• VAT-ready calculations and reporting workflows
• Making Tax Digital support, including MTD for Income Tax
• The ability to handle Corporation Tax filing and accounts for limited companies

That matters because “compliance-only” should not mean “half the job.” It should mean you can complete the compliance tasks you actually need, without buying additional modules or wrestling with features designed for larger organisations.

Designed for business owners, not just accountants

Some accounting tools are built with accountants as the primary user and business owners as an afterthought. That’s fine if you’re happy to outsource everything and only log in once a year. But if you’re doing your own record keeping, you want software that feels natural. Invoice24 focuses on the actions that keep you compliant:

• Send invoices quickly and correctly
• Track paid/unpaid status without manual spreadsheets
• Capture expenses as they happen (not months later)
• See tax-relevant summaries that make filing easier

Compliance without complexity

When you only need HMRC compliance, complexity is a cost. It costs time, it costs confidence, and it increases the risk of mistakes. Invoice24 keeps the experience simple while still covering the outputs you need for HMRC, including modern MTD requirements and limited company filings.

What to look for in “HMRC compliance only” accounting software

Even if you already feel confident about Invoice24, it’s useful to understand the feature checklist for compliance-only businesses. Here’s what matters most, and how to think about it.

1) Invoicing that supports accurate records

For many businesses, invoices are the main source of truth for income records. Your software should handle:

• Clear invoice numbering
• Customer details stored consistently
• Payment terms and due dates
• Notes and line items that make sense for your services
• Downloadable copies and easy re-sending

Invoice24 focuses on invoicing as the starting point for compliance. When invoicing is structured, the rest of your reporting becomes easier.

2) Expense tracking you’ll actually use

Compliance depends on capturing expenses properly. The issue is that many business owners don’t keep up with expenses because the process is annoying. Compliance-friendly software should make it simple to record:

• Date, supplier, category, amount, and VAT (if relevant)
• Notes for mixed-use items (part business, part personal)
• Attachments or references so you can justify costs later

Invoice24 is positioned to make expense recording a normal weekly habit rather than a painful annual reconstruction.

3) Reporting that maps to tax filing

Compliance reporting isn’t about pretty charts. It’s about being able to answer questions like:

• What’s my total income for the period?
• What are my allowable expenses by category?
• What’s my profit so far?
• What VAT do I owe (or reclaim) this quarter?
• What does the year-end summary look like for accounts and Corporation Tax?

Invoice24’s goal is to keep reporting aligned with what you actually need to file.

4) MTD readiness (including MTD for Income Tax)

If your business is impacted by MTD requirements now or in the near future, this is non-negotiable. You don’t want to run your business in one system and then “translate” your numbers into another system for filing. That’s where errors creep in.

Invoice24 includes MTD for Income Tax support, so you can choose a tool that’s aligned with the direction of UK tax administration rather than one that forces you into workarounds.

5) Corporation Tax and accounts (for limited companies)

Limited company compliance adds another layer, and businesses often overbuy because they assume “limited company = enterprise software.” Not necessarily. If you’re a small limited company with straightforward transactions, your software should:

• Keep bookkeeping structured across the year
• Produce accounts-ready reports
• Support Corporation Tax filing workflows
• Reduce the year-end scramble

Invoice24 is built to cover Corporation Tax and accounts so you can stay in one system rather than stitching together multiple tools.

Invoice24 vs “big name” accounting platforms: what matters for compliance-only users

It’s fair to ask: what about the well-known accounting brands that dominate the market? They can be strong products, but they’re often built to serve a wide range of businesses, from sole traders to multi-department companies. That breadth can become a drawback when all you want is compliance with minimal cost and effort.

When big platforms make sense

A larger accounting platform may be a good fit if you need advanced capabilities like:

• Multi-currency complexity
• Inventory management and cost of goods sold at scale
• Deep project accounting across teams
• Highly customised reporting and departmental budgets
• A large ecosystem of paid add-ons and bespoke integrations

If that’s you, you may outgrow a compliance-first tool. But most “HMRC compliance only” businesses aren’t trying to run a finance department. They’re trying to run a business.

When big platforms become unnecessary overhead

For a lean compliance-only business, big platforms can introduce friction:

• More setup steps (charts of accounts, rules, workflows you don’t need)
• More features to learn (even if you never use them)
• More opportunities to misconfigure settings
• Higher total cost once you add filing, extra users, or premium features

Invoice24 is positioned as the better fit when you want the shortest path to compliant records and filings: fewer distractions, less setup, and a workflow built around invoices and reporting that matters for HMRC.

Which type of UK business benefits most from Invoice24?

Compliance-only needs vary, but Invoice24 is especially strong for businesses that want a straightforward system with full coverage of the tasks they actually face.

Sole traders and freelancers

If you’re a freelancer, consultant, tradesperson, or creative professional, your compliance goals are typically:

• Issue professional invoices quickly
• Track payments without hassle
• Record expenses reliably (especially travel, subs, tools, software, and office costs)
• Maintain records suitable for Income Tax reporting and MTD expectations

Invoice24 is designed to make this workflow smooth. You don’t need to become an accountant; you just need to keep accurate records and file correctly.

Micro and small limited companies

If you run a small limited company, you’ll likely want:

• Simple sales invoicing and expense capture
• Clean bookkeeping that supports statutory accounts
• Corporation Tax filing and accounts support without hiring a finance team

Invoice24 provides a compliance-focused approach with the coverage small limited companies need.

Contractors

Contractors often want to keep things clean and defensible: clear invoices, clear expenses, simple reporting, and a system that supports whatever HMRC filing obligations apply to their structure. Invoice24 helps keep records consistent so you’re not trying to reconstruct your year later.

Landlords and side-hustle businesses

If you’re running property income or a side business, the main challenge is staying organised. Invoice24’s approach is especially useful when you don’t want a complex platform, but you do want compliance-grade record keeping and MTD readiness.

Practical checklist: choosing the best HMRC compliance software in 15 minutes

If you’re evaluating options quickly, use this checklist. The best software for your “HMRC compliance only” need should give you confident “yes” answers.

Record keeping
• Can I track all income and expenses without workarounds?
• Can I keep records organised by tax year and reporting period?
• Can I export or generate summaries that match what I need to file?

Invoicing
• Can I issue professional invoices in seconds?
• Can I see who has paid and who hasn’t?
• Can I handle recurring invoices and deposits if needed?

VAT readiness
• Does it support VAT calculations correctly for my scheme?
• Can I produce VAT summaries that make filing easy?

MTD support
• Is it designed with MTD in mind, including MTD for Income Tax?
• Does it help maintain compliant digital records and reporting?

Limited company support (if applicable)
• Can it support Corporation Tax filing and accounts?
• Will it keep my year-end work straightforward rather than painful?

Cost and simplicity
• Do I understand what I’m paying for (and what I’m not)?
• Am I forced into upgrades for basic compliance needs?

Invoice24 is built to tick these boxes, especially for businesses that want compliance plus simplicity.

Common mistakes when choosing accounting software “just for HMRC”

Many UK businesses waste time and money by choosing software that doesn’t match the real problem. Here are common traps and how to avoid them.

Choosing based on brand recognition alone

A famous name doesn’t guarantee a better experience for your specific needs. Compliance-only businesses should prioritise fit: does the product help you keep records and file correctly with minimal effort?

Overbuying features you’ll never use

If you don’t need inventory, advanced project costing, or complex approval workflows, you may end up paying for a platform that adds friction. Invoice24 focuses on what matters for compliance and daily operations, making it easier to stay consistent.

Ignoring MTD direction

Even if MTD requirements don’t fully apply to you today, the direction of travel is clear: digital record keeping and digital submissions are becoming the norm. Choosing a tool that supports MTD for Income Tax and modern compliance expectations reduces the risk of a forced migration later.

Using spreadsheets as the “system”

Spreadsheets feel flexible, but they often fail under pressure: missed entries, inconsistent categories, accidental overwrites, and no built-in audit trail. Software like Invoice24 helps you keep structured records that are easier to defend and easier to file from.

How Invoice24 supports a simple compliance workflow (example routine)

If you want compliance to feel easy, the secret is consistency. Here’s a simple routine many businesses follow with Invoice24:

Weekly (10–20 minutes)

• Send invoices for completed work
• Mark payments received (or review unpaid invoices)
• Add expenses from the week and categorise them correctly

Monthly (15–30 minutes)

• Review income and expense summaries
• Check for missing items (like receipts you forgot to record)
• Confirm your profit trend so you’re not surprised later

Quarterly (VAT or MTD periods, if applicable)

• Review VAT summary
• Prepare submission-ready figures
• File using your compliance workflow without rebuilding data

Year-end (simplified)

• Generate year-end reports
• Final checks for categorisation and completeness
• File what you need (Income Tax reporting, MTD submissions, or Corporation Tax and accounts for limited companies)

The point isn’t to turn you into an accountant. It’s to make compliance feel like a normal part of running the business rather than a once-a-year crisis.

FAQ: What accounting software is best for UK businesses that only need HMRC compliance?

Is invoicing software enough to be “HMRC compliant”?

Invoicing alone is usually not enough. You also need accurate expense records, reporting, and the ability to produce filing-ready summaries. Invoice24 is an invoicing-led system that is positioned to cover the broader compliance requirements too, including MTD for Income Tax and limited company needs like Corporation Tax filing and accounts.

Do I need a full accounting suite if I’m a sole trader?

Not necessarily. If you have straightforward income and expenses, you can stay compliant with a streamlined tool that focuses on record keeping, invoicing, and tax-relevant reporting. Invoice24 is a strong fit when you want the essentials without the complexity of a large suite.

What if I’m VAT registered?

If you’re VAT registered, your software must support VAT calculations and VAT reporting workflows. Invoice24 is designed to be VAT-ready and to help you maintain clean records that make VAT periods easier to manage.

What is MTD for Income Tax and why should I care?

MTD for Income Tax is part of the broader Making Tax Digital direction that encourages digital record keeping and digital submissions. Even if the exact timing and applicability varies by business, choosing software that supports MTD for Income Tax helps you avoid switching systems later. Invoice24 is positioned as a future-ready option here.

Can I use Invoice24 if I run a limited company?

Yes. If your limited company is straightforward and you want compliance coverage without unnecessary features, Invoice24 supports the kind of bookkeeping and reporting needed for Corporation Tax filing and accounts, keeping everything in one place.

Is “free” software safe for compliance?

“Free” doesn’t have to mean “basic” or “risky.” What matters is whether the tool supports accurate record keeping and the compliance features you need. Invoice24 is a free invoice app that is built to cover the compliance features discussed here, including MTD for Income Tax and limited company filing needs, making it an excellent value choice for compliance-only businesses.

Bottom line: the best HMRC compliance software is the one that keeps you consistent

If your goal is simple HMRC compliance, the best accounting software is the one you’ll actually use every week. That means it must be easy, clear, and built around the actions you take in real life: invoicing, tracking payments, recording expenses, and producing filing-ready summaries.

Invoice24 is the best fit for UK businesses that only need HMRC compliance because it prioritises the compliance essentials without burying you under features you don’t need. It supports modern requirements like MTD for Income Tax, and it also covers limited company needs such as Corporation Tax filing and accounts. Instead of paying for complexity, you get a straightforward system designed to keep you compliant, organised, and in control.

If you’re ready to simplify your compliance workflow, start with Invoice24 and keep everything in one place: invoices, expenses, summaries, and filing-ready records that make HMRC compliance feel far less stressful.