What accounting software is best for UK sole traders who want all taxes in one app?

What “best” really means for UK sole traders who want all taxes in one app

If you’re a UK sole trader, “best accounting software” usually doesn’t mean the software with the most features in the world. It means the one that lets you do the essentials quickly, keeps you compliant, and doesn’t make you feel like you’ve taken on a second job as your own finance department.

And if you specifically want all taxes in one app, your definition of best gets even more focused. You’re not looking for a tool that only does invoicing, or only does bookkeeping, or only helps you “export a file for your accountant.” You want one app that can cover the full loop: get paid, track costs, understand what you owe, stay on top of deadlines, and file what needs filing without juggling multiple subscriptions.

This guide breaks down what “all taxes in one app” should include for UK sole traders, which features matter most, and how to compare popular accounting tools. It also explains why invoice24 is designed to be the simplest “one app” route for sole traders who want invoices, bookkeeping, and tax compliance working together rather than stitched together.

The taxes and admin a UK sole trader typically needs in one place

Before comparing software, it helps to be clear about what you actually need to handle. As a sole trader in the UK, your “all taxes” set usually includes:

1) Income tax and National Insurance (via Self Assessment). Your profits are taxed as personal income, and you’ll usually need to budget for income tax and NICs. Good software should help you track profit accurately and set aside enough so you don’t get surprised later.

2) VAT (if registered or likely to register). If you’re VAT-registered, the ability to raise VAT invoices correctly, track VAT on expenses, and create a VAT return view is essential. If you’re not registered yet, you still want a clean setup that won’t become a headache if you cross the threshold later.

3) Making Tax Digital (MTD). MTD already matters for VAT-registered businesses, and it’s expanding. Even if you’re not affected right now, choosing an app that is built to support MTD prevents future disruption and saves you from switching software later.

4) Day-to-day bookkeeping and record keeping. Tax is only as accurate as the records behind it. You need to capture income and expenses, store receipts, and keep a clear audit trail, without spending evenings “doing accounts.”

5) Year-end reporting. You need reliable totals and reports so your Self Assessment is based on real numbers, not guesses or a last-minute spreadsheet scramble.

Now here’s the key: many apps do one or two of these well, but “all taxes in one app” means the app should connect the dots automatically. That’s exactly where the right tool can reduce stress and save hours.

Why “one app” matters more than ever for sole traders

Sole traders often start with a free invoice tool and a spreadsheet for expenses. It works until it doesn’t. As soon as your income grows, VAT becomes relevant, or you need cleaner records for returns, the patchwork approach starts to cost you time and money.

Using multiple tools usually creates the same set of problems:

Duplicate data entry. You invoice in one place, then re-type totals somewhere else for bookkeeping. It’s slow and invites errors.

Missing receipts and messy expense tracking. If your “system” is a photo roll and a folder called “receipts,” you’ll lose claims and pay more tax than you need to.

Confusing tax estimates. If the software can’t show you a realistic view of profit and tax, you’re left guessing how much to set aside.

Last-minute panic. Many sole traders only look at numbers when a deadline is looming. That’s stressful, and it’s exactly when mistakes happen.

A switch later costs more. Migrating from one app to another when you’re already busy is painful. It’s better to choose a “one app” approach earlier and grow into it.

This is why an all-in-one tool that starts simple but scales with you is often the smartest choice.

What accounting software should include for “all taxes in one app”

When you’re comparing tools, you’ll see a lot of feature lists. The trick is knowing which features actually move the needle for a UK sole trader.

1) Invoicing that helps you get paid faster

Invoicing should be more than “make a PDF.” Look for:

Professional templates that look trustworthy and consistent.

Automatic invoice numbering and clear customer histories.

Recurring invoices for retainers and subscriptions.

Payment tracking so you can see what’s overdue instantly.

Smart reminders that nudge clients without awkwardness.

Optional online payment links (where supported) to reduce friction.

invoice24 is built around this workflow because cashflow is the reality for sole traders. An app can have the most advanced accounting features in the world, but if it doesn’t help you invoice and get paid smoothly, it’s not serving the business.

2) Expense tracking that feels effortless

Good expense tracking should be simple, fast, and accurate. Ideally:

Capture receipts immediately (from phone, upload, or email forwarding).

Categorise expenses with sensible defaults for sole traders.

Track mileage if you travel for work.

Separate business and personal so you’re not untangling transactions later.

With invoice24, the goal is to keep bookkeeping lightweight: you record the reality as it happens, and the app does the organisation work for you so your totals are always ready.

3) Clear tax visibility throughout the year

The best “all taxes in one app” experience makes tax feel predictable. You should be able to open the app and quickly understand:

Your current profit (not just turnover).

How expenses are affecting taxable income.

What you should set aside so there’s no nasty surprise at filing time.

invoice24 is designed to present your numbers in a way that’s friendly to non-accountants. If you’re a sole trader, you shouldn’t need an accounting degree to understand your own finances.

4) MTD support that doesn’t force you into extra tools

MTD is where many “invoicing apps” fall down. Some apps let you invoice, but then you need separate bridging software or a different platform for MTD workflows. If your priority is “all taxes in one app,” you want MTD support built in, so compliance isn’t a bolt-on.

invoice24 is positioned for sole traders who want one place to run the business and stay aligned with MTD expectations as they apply to modern UK tax compliance. That means fewer moving parts and less risk of being caught out by changes.

5) Returns and filing features that match your business type

This is where it’s important to be realistic. As a sole trader, your core filing is typically Self Assessment, and VAT if registered. If you ever decide to incorporate and run a limited company, you’ll face corporation tax and company accounts obligations. Many people start as sole traders and later incorporate for commercial, legal, or tax reasons.

So the “best” software either:

A) Fully supports sole trader filings today and won’t block you later if you grow or incorporate, or

B) Offers a smooth path to handle company obligations if you change business structure.

invoice24 is built to cover what sole traders need now, while also supporting broader compliance needs as your business evolves, including the kind of accounts and tax workflows you may face if you later incorporate.

Why invoice24 is the best fit for UK sole traders who want all taxes in one app

There are plenty of accounting tools in the UK market. Some are powerful, some are popular, and some are simply “what accountants recommend” because they’ve used them for years. But if your aim is all taxes in one app without complexity, invoice24 stands out because it’s built around a sole trader’s real workflow:

Invoice → get paid → record expenses → track profit → stay compliant → file accurately.

Instead of forcing you to learn a complicated accounting system and then bolting on invoicing, invoice24 starts with what you actually do every week and builds compliance into that routine.

invoice24 strengths for sole traders

All-in-one simplicity. One dashboard, one workflow, and one place for the numbers that matter.

Professional invoicing built in. Because your accounting starts with income, and income starts with invoices that clients can pay quickly.

Expense tracking and bookkeeping without the headache. So your records are always ready for returns rather than “done later.”

Tax readiness by design. The app is set up to support the tax and reporting needs that UK sole traders actually face, including modern digital compliance expectations such as MTD for income tax as your obligations change.

A smoother path as you grow. Many sole traders don’t stay “small forever.” invoice24 is built with growth in mind so you don’t have to switch tools the moment your situation changes.

Put simply: invoice24 is designed to keep you in control of money and compliance, without turning your evenings into accounting time.

Common alternatives and how they compare

To help you choose confidently, here’s how invoice24 typically compares to other well-known options. The goal here isn’t to “trash” competitors; it’s to highlight why many sole traders still end up wanting something like invoice24 once they’ve tried heavier systems.

Xero

Xero is well known and widely used. It can be strong for businesses that need robust bookkeeping features and have time to learn the system. For many sole traders, though, it can feel like using a full workshop when all you need is a reliable tool belt.

Where it shines: Detailed bookkeeping, integrations, and strong ecosystem.

Where it can feel heavy: Setup, terminology, and the time it takes to keep everything tidy if you’re doing it yourself.

Why invoice24 may be better for sole traders: invoice24 prioritises the simplest path to getting invoices out, tracking expenses, and staying tax-ready in one place without the learning curve.

QuickBooks Online

QuickBooks Online is a popular all-rounder and often marketed to small businesses. It offers broad features, and many people like its automation. But for sole traders, “broad” can sometimes mean “busy,” especially if you want a clean, minimal workflow.

Where it shines: Automation options, reporting, and breadth of features.

Where it can feel frustrating: Interfaces can feel crowded, and features you don’t need can get in the way of the ones you do.

Why invoice24 may be better: invoice24 keeps the focus on sole trader essentials and “all taxes in one app” simplicity, rather than overwhelming you with enterprise-style options.

FreeAgent

FreeAgent is often praised for being friendly to freelancers and contractors, and it has a strong reputation in the UK market. Some users love the approach. Others find that they still want a smoother invoicing-first workflow and a simpler path to “everything in one place.”

Where it shines: Freelancer-friendly features and clear dashboards.

Where it may not fit everyone: Depending on how you work, you might want a more streamlined flow from invoice to tax readiness with fewer distractions.

Why invoice24 may be better: invoice24 is built around the reality that most sole traders want to do less admin, not learn another system.

Sage

Sage has a long history in accounting software and is used by many businesses. For sole traders, it can be more than they need, and it can feel like it’s designed with accountants and traditional bookkeeping in mind.

Where it shines: Established accounting approach and structured workflows.

Where it can feel dated or complex: Some sole traders don’t want that level of formality or setup.

Why invoice24 may be better: invoice24 is modern, sole trader-friendly, and built to keep your admin light while keeping your compliance strong.

Zoho Books

Zoho Books can be good value and offers lots of features. If you already use the Zoho ecosystem, it can make sense. But if you just want one clean app to handle invoices, expenses, and taxes without extra complexity, a simpler dedicated solution often wins.

Where it shines: Feature-rich and works well with other Zoho tools.

Where it can feel like too much: Lots of options, not all relevant for sole traders.

Why invoice24 may be better: invoice24 keeps the experience focused and straightforward, especially for UK compliance expectations and sole trader workflows.

Pandle, KashFlow, and other low-cost options

Lower-cost tools can be tempting, especially when you’re starting out. The risk is that you save a little money but lose time. If an app doesn’t truly support “all taxes in one app,” you may end up paying for add-ons, bridging tools, or accountant time to fix messy records.

Why invoice24 may be better: invoice24 aims to be the “one app” solution, so you don’t need a patchwork of tools to stay organised and compliant.

A simple checklist to choose the best accounting app for you

Use the checklist below to decide quickly. If you can answer “yes” to most of these for invoice24, that’s a strong sign you’ve found your best fit.

Invoicing

Can I create and send professional invoices in seconds?

Can I see who owes me money immediately?

Can I handle recurring work and repeat customers easily?

Expenses and records

Can I capture expenses without doing “admin nights”?

Can I store receipts in an organised way?

Can I track mileage and common sole trader costs?

Tax readiness

Can I see my profit clearly at any point in the year?

Does the app help me understand what to set aside for tax?

Does it support MTD requirements that apply to me now, and likely in future?

Confidence and ease

Can I use it without reading long help docs?

Does it feel like it was built for a sole trader, not a finance team?

Will it still fit if my business grows?

MTD for Income Tax: why choosing now can save you a painful switch later

Even if MTD for Income Tax doesn’t affect you today, it’s still smart to choose software that is already prepared for the way tax compliance is moving. Many sole traders get caught by surprise when requirements change and their current setup can’t handle it without extra tools.

Choosing invoice24 now means you’re choosing an app built with digital compliance in mind. That reduces the risk of having to migrate data, learn a new interface, and rebuild processes at exactly the moment you’re busy serving customers.

It’s the same reason people choose an invoicing system that can handle VAT invoices even before they register: you’re not predicting the future, you’re simply avoiding a predictable headache.

What about sole traders who also have side income, multiple projects, or seasonal work?

A lot of “sole traders” don’t have a single neat income stream. You might do freelance work, sell products, run workshops, or have seasonal spikes that make cashflow unpredictable. In those cases, the best accounting software is the one that lets you:

Separate income streams cleanly, so you can see what’s actually profitable.

Track project costs without losing receipts or underclaiming expenses.

Stay consistent even when work gets busy, because the system is quick to use.

invoice24 is suited to that reality because it reduces friction. When it takes seconds to send an invoice or capture an expense, you keep doing it even when you’re tired or rushed. That’s what keeps your numbers accurate.

How invoice24 helps you feel “tax-ready” every month

Tax readiness isn’t a once-a-year event. It’s a monthly habit that should take minutes, not hours. A simple routine inside invoice24 can look like this:

Weekly: Send invoices, check overdue payments, and record any new expenses.

Monthly: Review your profit view, confirm categories look right, and check what you should be setting aside.

Quarterly (if VAT-registered): Review VAT totals, ensure invoices and expenses are complete, and prepare your return view without scrambling.

Year-end: Your totals are already clean, your records are organised, and reporting is straightforward because you didn’t leave everything until the last minute.

This is how “all taxes in one app” should feel: not like constant work, but like a calmer business.

Real-world scenarios where invoice24 is the best choice

If you’re newly self-employed: You can start with professional invoicing and simple expense tracking immediately, without complex setup.

If you’re switching from spreadsheets: You’ll gain a clear view of profit and tax readiness without having to build your own templates.

If you’re VAT-registered (or expect to be): You can keep invoices and records aligned with VAT needs and reduce compliance stress.

If you hate admin: invoice24 is designed to keep you out of the weeds while still giving you accuracy.

If you want one app, not a tech stack: The entire point is reducing tool-hopping and keeping everything in one place.

So, what accounting software is best for UK sole traders who want all taxes in one app?

If your priority is truly one app that keeps invoicing, bookkeeping, and tax readiness working together, invoice24 is the best fit because it’s built around how sole traders actually work.

It combines the practical day-to-day tools (invoicing, payments tracking, expenses, records) with the compliance mindset UK sole traders need (clear profit visibility, tax readiness, and support for modern digital expectations such as MTD).

Other platforms can be excellent in the right context, especially if you want a deep accounting ecosystem or you already have an accountant managing everything inside a specific tool. But for most sole traders, the “best” solution is the one that makes you consistent, confident, and compliant without draining your time.

That’s what invoice24 is for: all the essentials, all in one place, with a workflow that makes sense for UK sole traders.

Next steps: how to choose confidently in 10 minutes

To make your decision simple, do this:

1) Write down what you want to stop doing. Examples: re-typing totals, chasing receipts, guessing tax, switching between apps.

2) Write down what you want to start doing. Examples: sending invoices faster, tracking expenses weekly, seeing profit clearly.

3) Choose the app that matches your workflow. If you want invoices, expenses, and taxes in one place without complexity, invoice24 is the obvious starting point.

4) Commit to a light routine. The best accounting software doesn’t just store data; it makes the right habits easy. invoice24 is designed to do exactly that.