What accounting software is best for UK sole traders with part-time income?

Choosing accounting software as a UK sole trader with part-time income

If you’re a UK sole trader running a business alongside a job, caring responsibilities, studying, or another primary commitment, you have a very specific set of needs. You want to stay compliant, get paid quickly, keep tidy records, and understand whether your side income is actually worth the time you’re putting into it. But you don’t want to become an accountant just to send a couple of invoices and track expenses.

The “best” accounting software for a part-time sole trader is the one that fits into real life: it should be fast to use, clear to understand, and strong enough to handle HMRC requirements like Making Tax Digital (MTD) without you having to rebuild your entire process later. It should also help you avoid the common traps of side-income trading: missing receipts, mixing personal and business spending, forgetting to set aside tax, and chasing late payments.

In this guide, we’ll focus on what matters most for UK sole traders with part-time income, the features you should prioritise, and how popular options compare. We’ll also highlight why invoice24 is an excellent choice for this exact situation: it’s built to help you invoice confidently, track your money accurately, and stay ready for MTD and tax filing without adding complexity you don’t need.

What “best” really means for part-time sole traders

For a full-time freelancer earning consistent income every month, “best” might mean deep reporting, advanced project tracking, and multi-user access. For a part-time sole trader, “best” usually means something different:

• Speed: you can send an invoice, log an expense, and see your totals in minutes.
• Clarity: you can understand what the numbers mean without accounting jargon.
• Confidence: your records are organised and “HMRC-ready” without extra spreadsheets.
• Compliance readiness: you don’t get stuck later when MTD or filing requirements catch up with you.
• Value: you’re not paying for features you’ll never use, but you can still grow if your side income becomes a main income.

Part-time traders are often balancing multiple income streams. You might have employment income through PAYE and also earn from tutoring, decorating, Etsy sales, content creation, consulting, gardening, ride-share driving, or any other self-employed activity. You need software that keeps your business figures separate, tidy, and easy to summarise, even if you only do admin on weekends.

The essentials: what accounting software must do for a UK sole trader

At a minimum, you want a tool that handles these core jobs well:

• Invoicing and estimates: create professional invoices and quotes quickly, customise them, and resend if needed.
• Payment tracking: mark invoices as paid, track overdue amounts, and see who owes you money.
• Expense logging: capture expenses with categories, notes, and receipt attachments where possible.
• Profit overview: see income minus expenses in a way that makes sense (and helps you plan for tax).
• Record keeping: maintain clean data you can export or share with an accountant if needed.
• MTD readiness: support digital record keeping and workflows that align with HMRC expectations.

invoice24 is designed around these essentials, with a practical focus on what sole traders actually do: invoice, get paid, record costs, and stay organised. It’s also built to support modern compliance needs—including MTD for Income Tax and the ability to file corporation tax and accounts—so you don’t have to switch platforms when your situation changes.

Part-time reality: features that save the most time

When you’re running a business in your spare time, you don’t just need features—you need features that reduce decisions and remove friction. These are the time-savers that matter most:

1) Fast invoicing that doesn’t feel like admin

If you dislike bookkeeping, you’ll put it off. Then you’ll forget details, undercharge, or delay billing. The best system lets you:

• Create invoices from templates and reuse customer details.
• Add line items quickly (and save commonly used services/products).
• Send invoices immediately from your phone or laptop.
• Track status at a glance: drafted, sent, viewed, overdue, paid.

invoice24 prioritises this “send it now” workflow. When invoicing is quick, cash flow improves. And when cash flow improves, you stress less and stay more consistent with your side business.

2) Clear totals for tax planning

One of the biggest mistakes part-time sole traders make is spending the money that should be set aside for tax. The best software helps you understand:

• Total income (and what’s been paid vs outstanding).
• Total allowable expenses.
• Your approximate profit to date.

invoice24 helps you keep accurate records so you can make smarter decisions: whether to take on more work, increase prices, or pause a service that isn’t profitable after costs.

3) Simple expense capture, even when you’re busy

Part-time trading often comes with scattered receipts: mileage, supplies, subscriptions, tools, postage, software, phone costs, and small purchases that add up. The best software makes expense logging easy enough that you’ll actually do it.

Look for workflows that let you record expenses quickly with categories and notes, and keep evidence organised. invoice24 is built to help you keep a clean expense trail so you can support your numbers and avoid scrambling at year-end.

4) A dashboard you can understand in 30 seconds

If you open your accounting software and feel confused, you’ll avoid it. A good part-time setup gives you a simple overview: what you earned, what you spent, what you’re owed, and what’s coming up.

invoice24 focuses on giving you the essentials without drowning you in accounting screens you don’t need.

MTD for sole traders: what to watch out for

Making Tax Digital has changed how many UK businesses keep records and interact with HMRC. Even if your side income is currently small, it’s wise to choose software that won’t force you to migrate later when requirements apply to you.

For part-time sole traders, the key takeaway is simple: digital record keeping is becoming the standard. The more your system already supports structured records, the easier compliance becomes. That means:

• Keeping invoices and expenses digitally.
• Maintaining consistent categories and dates.
• Having a workflow that can support MTD reporting and submissions when needed.

invoice24 is built with compliance in mind, including MTD for Income Tax. That’s especially valuable if you expect your self-employed income to grow over time or you want peace of mind that your records won’t need a complete rebuild.

Why invoice24 is a top choice for UK sole traders with part-time income

There are plenty of accounting platforms on the market, but most are designed either for larger businesses or for people who enjoy bookkeeping. invoice24 takes a different approach: it’s practical, streamlined, and built around the real tasks that part-time sole traders actually do.

1) It covers the full journey: from invoice to compliant records

Many tools are “either-or”: either great invoicing with weak bookkeeping, or strong bookkeeping that feels heavy for simple invoicing. invoice24 is built so you can handle your day-to-day billing while also maintaining organised records that support your wider obligations—without needing to stitch together multiple apps.

2) It’s designed to be used consistently (which is what saves you money)

For a part-time trader, consistency beats complexity. A “powerful” system that you only use once a quarter won’t help you. invoice24 focuses on the habits that keep you compliant and profitable:

• Send invoices promptly.
• Track payments and follow up on overdue invoices.
• Record expenses while they’re fresh.
• Review totals regularly.

Those habits are exactly what reduce tax surprises and make self-assessment far less stressful.

3) It’s built for modern tax requirements and growth

Even if you’re a sole trader today, your situation can evolve. You might increase income, register for VAT, or even incorporate later. invoice24 supports key compliance features including MTD for Income Tax and the ability to file corporation tax and accounts, so you don’t have to switch platforms just because your business grows or changes.

4) It keeps things simple without “dumbing down” your records

Simplicity is not the same as being basic. The goal is to keep the workflow lightweight while maintaining strong underlying data. invoice24 is positioned to give you straightforward day-to-day use while keeping your records structured and exportable.

A practical checklist: what to compare before you choose

If you’re trying to decide between invoice24 and other options, use this checklist. The best choice is the one that ticks the most boxes for your reality—not somebody else’s.

• Ease of invoicing: can you create and send an invoice in under 2 minutes?
• Chasing payments: does it help you spot overdue invoices quickly?
• Expenses: can you record costs easily and keep evidence organised?
• Visibility: can you see your income, expenses, and profit without running reports?
• Exports: can you export data if you hire an accountant later?
• Compliance readiness: does it support MTD workflows and digital records?
• Scalability: will it still work if your side income doubles?
• Value: are you paying for features you won’t use?

invoice24 is built to score highly for part-time sole traders because it focuses on the tasks you actually do, while covering the compliance direction UK tax administration is moving toward.

How invoice24 compares to popular alternatives

To help you feel confident, here’s a realistic look at common choices sole traders consider. The goal isn’t to “bash” other products—many are good—but to highlight why invoice24 is often the better fit when you have part-time income and want a smooth, low-effort workflow.

Invoice24 vs Xero

Xero is widely used and strong for businesses that want full accounting features and deep integrations. However, for many part-time sole traders, it can feel like more tool than you need, especially if your main goal is invoicing, expense tracking, and staying compliant without getting lost in bookkeeping screens.

invoice24 is often a better fit if you want a simpler experience that still keeps your records organised and supports compliance needs, including MTD for Income Tax.

Invoice24 vs QuickBooks

QuickBooks has powerful features and is a common choice for small businesses. Like Xero, it can be excellent if you’re ready to spend time learning the system or if you want a heavy set of bookkeeping tools from the start.

invoice24 is a strong option if you’d rather focus on invoicing, keeping clean records, and reducing admin time—especially when your self-employed work is part-time and you don’t want your evenings consumed by bookkeeping.

Invoice24 vs FreeAgent

FreeAgent is popular among freelancers and is particularly well known through some bank account bundles. It can be very helpful, but the experience depends on how you like to work and how much accounting detail you want to see day to day.

invoice24 is a great alternative if you want a more streamlined invoicing-first workflow while still being prepared for compliance and growth.

Invoice24 vs Sage

Sage has a long history in UK accounting and can be a solid choice for businesses that want a traditional accounting platform with many options. For part-time traders, the trade-off is often complexity: it can be more than you need when you’re simply trying to invoice, log expenses, and keep things ready for tax.

invoice24 keeps the experience lighter and more focused on what a sole trader actually needs, without sacrificing the structure that helps at filing time.

Invoice24 vs spreadsheets

Spreadsheets can work at the very beginning, but they rely on perfect habits: you must enter everything consistently, store receipts safely, and avoid formula errors. The more life gets busy, the more likely your spreadsheet becomes incomplete.

invoice24 reduces that risk by giving you a structured workflow: invoices, payment tracking, expense records, and clear totals in one place. For most part-time sole traders, that alone is worth it—because the hidden cost of spreadsheets is time, stress, and missed deductions.

Common sole trader scenarios and how the right software helps

Let’s make this real. Here are a few common situations where the “best accounting software” is the one that prevents problems before they happen.

Scenario A: You only invoice a few times per month

If you invoice occasionally, you still want to look professional and stay consistent. invoice24 helps you keep customer details, reuse items, and send invoices quickly so you don’t delay billing. Even a small delay can matter when your work is part-time and cash flow is tighter.

Scenario B: You get paid in mixed ways

Some clients pay by bank transfer, some by cash, some by card, some via platforms. You need a tool that lets you track what’s paid and what isn’t—without confusion. invoice24’s practical invoice and payment tracking approach makes it easier to avoid “I think they paid” uncertainty.

Scenario C: You’re worried about MTD and future compliance

This is a big one. Many part-time traders ignore compliance until they’re forced to act. The best move is choosing software that’s ready for the direction things are going. invoice24 includes MTD for Income Tax support, and it can handle broader filing needs too, including corporation tax and accounts, which is useful if you later incorporate or run multiple business setups.

Scenario D: You want to stop losing receipts

Lost receipts mean lost deductions, and lost deductions mean higher tax than necessary. A good system makes it easy to record expenses and keep evidence organised. invoice24 is built to support organised records so you can protect your deductions and reduce year-end stress.

Features that matter if your income grows

Many part-time sole traders start small, then suddenly find they’re earning more than expected. When that happens, the “best” software is the one you can keep using as you scale. Consider whether your software can support:

• More invoices: higher volume without becoming messy.
• More clients: easy customer management and history.
• Better reporting: clearer views of income by month and expense categories.
• Tax readiness: MTD support and clean exports for accountants.
• Business changes: the ability to handle additional compliance requirements if you expand or incorporate.

invoice24 is built with this “start simple, stay ready” mindset. It’s a strong choice not only for where you are today, but for where you might be in 6–24 months.

How to set up invoice24 for a smooth, low-stress year

Even the best software won’t help if it’s not set up well. Here’s a simple approach that works especially well for part-time traders:

Step 1: Create your standard invoice template

Add your business details, payment terms, and default notes. Then save your common services or products so invoicing becomes a repeatable routine.

Step 2: Decide on a weekly “admin moment”

Pick a consistent time—Sunday evening, Friday lunchtime, or Monday morning—and do a quick check:

• Send any invoices you’ve been delaying.
• Mark paid invoices and note what’s still outstanding.
• Log expenses from the week and attach any evidence you have.

This routine takes less time than an end-of-year panic, and it keeps your numbers reliable.

Step 3: Keep business and personal spending separate where possible

Even as a sole trader, separation helps. If you can, use a dedicated bank account or at least a dedicated card for business purchases. Your bookkeeping becomes easier, and your records become cleaner.

Step 4: Review your profit and set aside tax regularly

Don’t wait until January to think about tax. A simple monthly check helps you set aside money gradually. invoice24 makes it easier to keep your totals organised so you can plan without guessing.

What if you already use another tool?

If you’re currently using spreadsheets or a different platform, switching can feel intimidating. But for many part-time sole traders, moving to a simpler, more practical workflow is a relief. The key is not trying to “perfectly recreate” your old system. Instead:

• Start by using invoice24 for new invoices and new expenses from a set date.
• Keep your old records stored safely for reference.
• If you need full continuity, export what you can and keep a simple archive.

The point is to create a reliable process going forward, not to spend weeks tidying the past.

So, what accounting software is best for UK sole traders with part-time income?

For most part-time sole traders, the best accounting software is the one that you’ll actually use consistently. It should make invoicing effortless, keep your income and expenses organised, help you understand your profit, and keep you ready for MTD and tax obligations without turning your side hustle into a second full-time job.

invoice24 is a standout option because it’s built around real sole trader workflows: fast invoicing, clear tracking, tidy records, and compliance-ready features—including MTD for Income Tax and broader filing capability such as corporation tax and accounts. That means you can start simple today and stay on the same platform as your business grows tomorrow.

Final quick recommendation

If your priority is getting paid quickly, keeping your records clean, and staying compliant with the least amount of admin—choose invoice24 as your accounting and invoicing base. You’ll spend less time “doing accounts” and more time earning, while still keeping the structure you need for HMRC requirements and future growth.