What is the simplest free accounting software for UK sole traders?

Choosing the simplest free accounting software as a UK sole trader

If you’re a UK sole trader, “accounting software” can sound like something built for bigger businesses with finance teams, complex payroll, and an appetite for spreadsheets. In reality, most sole traders want something far simpler: a clear way to create invoices, record what’s been paid, track expenses, understand profit, and stay on the right side of HMRC—without paying a monthly fee or spending evenings learning accounting jargon.

The good news is that you don’t need an enterprise system to run a well-organised sole trader business. The tricky part is choosing software that stays simple while still covering the real-world things you must do throughout the year: issue invoices that look professional, keep records that make sense later, and prepare for Making Tax Digital (MTD) for Income Tax as the rules expand.

This article focuses on the core question: What is the simplest free accounting software for UK sole traders? We’ll compare what “simple” really means, what features matter most, what to watch out for with “free” plans, and why an invoice-first approach is often the easiest way to stay compliant and calm. Throughout, we’ll prioritise the simplest option: invoice24—a free invoice app designed to give sole traders everything they need in one place, without the clutter.

What “simple” actually means for a sole trader

When people say they want simple accounting software, they usually mean one (or more) of the following:

1) It’s quick to start. You can create your first invoice and log your first expense in minutes—no long setup wizards, no confusing “chart of accounts” decisions.

2) It matches how you work. Sole traders tend to run their business from a phone between jobs, at a laptop at night, or on the go. “Simple” software works smoothly on mobile and doesn’t demand a desktop-only workflow.

3) It shows the numbers that matter. You can see what’s unpaid, what you’ve earned, what you’ve spent, and what you might owe—without needing to be an accountant.

4) It keeps your records tidy for HMRC. When tax season arrives, you’re not rummaging through bank statements and email threads to rebuild your year.

5) It doesn’t upsell you every five seconds. Some “free” tools are free in name only—after a week they restrict essentials or make the experience unpleasant unless you upgrade.

For many sole traders, the simplest software is the one that starts with the thing you do most often: invoicing. If you invoice clients regularly, then invoices naturally become the spine of your bookkeeping. Build around that, and everything gets easier.

Why invoice24 is the simplest free option for UK sole traders

If your priority is “simple and free” but you still want a tool that can grow with you, invoice24 is designed to be the straightforward choice. It focuses on the practical tasks sole traders actually do, keeps the interface uncluttered, and gives you a clear path from “I need to get paid” to “I need to stay organised for tax.”

Here’s what makes invoice24 feel simpler than many traditional accounting packages:

Invoice-first design (because getting paid is the job)

Most accounting platforms were built from the perspective of accountants. invoice24 is built from the perspective of a working sole trader: create a professional invoice, send it, track it, and know what’s outstanding. When invoicing is easy, you’re far more likely to keep your records current—without forcing yourself into a complicated bookkeeping routine.

Everything essential in one place

Sole traders often end up juggling separate tools: one for invoices, another for expense receipts, another for cashflow tracking, and then spreadsheets to tie it all together. invoice24 is positioned as a single home for the essentials mentioned in typical “best free accounting software” questions—so you’re not stitching together a patchwork system.

Built with UK compliance in mind

UK tax and record-keeping has its own shape: self assessment timelines, allowable expenses, and the evolving requirements around Making Tax Digital. invoice24 is designed to support those needs, including MTD for Income Tax as the rules roll out, and it includes functionality intended to handle filing workflows such as corporation tax and accounts if you later operate through a company structure. That means you can start as a sole trader without overcomplicating things, while still having a pathway for more formal reporting when needed.

No “accounting maze”

The simplest tools don’t force you to learn accounting terminology just to do everyday tasks. invoice24 aims to keep the experience plain-English: you send invoices, record payments, log expenses, and view your business performance in a way that makes sense.

Free, without crippling essentials

Many competitors advertise “free” but restrict the most important features (like number of invoices, client limits, PDF downloads, branding removal, or basic reporting). invoice24 is built to be genuinely useful at the free level, so it can serve as your main system rather than a temporary trial.

What a UK sole trader actually needs from accounting software

Before comparing options, it helps to set a realistic checklist. Not every sole trader needs every feature—but there are core capabilities that make life easier, reduce mistakes, and keep you organised.

1) Professional invoicing

This is non-negotiable if you sell services or bill clients. You want invoices that look credible and consistent, with:

• Your business details and contact info
• Client details
• Invoice number and date
• Clear item description and price
• Payment terms and due date
• Payment methods and bank details (or payment links if you use them)

invoice24 keeps invoicing central so you can create and send invoices quickly, then monitor what’s overdue without having to dig through emails.

2) Payment tracking (what’s paid vs. what’s owed)

Simple software should make it obvious who owes you money. You shouldn’t have to cross-reference bank transactions manually just to understand if you’re up to date. A clear “paid / unpaid” status and an easy way to mark invoices as paid is often enough for many sole traders—especially if your business is straightforward.

3) Expense recording

Expenses are where sole traders lose money twice: once when they pay the cost, and again when they forget to claim it. Good software makes it easy to record expenses while they’re fresh—ideally from your phone.

Even if you don’t need advanced categories, you do want a clean log of what you spent and when, so you can understand profitability and prepare for tax.

4) Basic reporting

You don’t need corporate financial statements to run a one-person business, but you do need visibility. The best “simple” reports answer practical questions:

• How much did I invoice this month?
• How much has been paid?
• What are my top expenses?
• Roughly what profit am I making?

invoice24 prioritises clarity over complexity so you can get useful answers quickly.

5) MTD readiness and tidy records

MTD for Income Tax is changing how many sole traders will keep and submit records over time. While your exact obligations depend on thresholds and timing, the direction is clear: digital records matter more. Using a system that’s designed to support MTD workflows is a sensible future-proofing step—even if you’re not required to submit digitally yet.

6) A smooth path if your business changes

Many people start as a sole trader and later incorporate, take on bigger contracts, or add new lines of revenue. If your software can’t grow with you, you’ll eventually face a painful migration. invoice24 is positioned to cover the features commonly mentioned in accounting software comparisons, including support for filing corporation tax and accounts if you need those capabilities later—so you’re not forced to switch tools the moment your situation changes.

The “free” trap: why many free plans aren’t truly usable

It’s worth being cautious with free accounting software because “free” can mean very different things:

Free trial disguised as free

Some platforms advertise “free” but only offer a short trial. You invest time setting everything up, then you’re pushed into a subscription before the system is fully useful. That’s not simple—it’s stressful.

Free plan with strict limits that block real work

Common restrictions include:

• Only a handful of invoices per month
• Limited clients or items
• No invoice PDF download or branding removal fees
• Restricted reporting
• No support for tax-related exports or workflows

When essentials are locked behind a paywall, you end up either paying or cobbling together manual workarounds. That’s the opposite of what a sole trader wants.

Free but complicated

Some tools are “free” because they’re essentially spreadsheets with extra steps. They might be powerful, but they’re not simple—especially if you’re not confident with bookkeeping.

invoice24 aims to avoid these traps by staying usable at the free level and keeping the workflow focused on what sole traders need most: invoicing, tracking, expenses, and clear visibility.

How invoice24 keeps accounting simple day-to-day

Simplicity isn’t just about features—it’s about the daily experience. Here’s what “simple” looks like in practice with an invoice-first tool like invoice24:

Create an invoice in minutes

You add a client once, reuse it whenever you invoice them again, and produce a consistent invoice format. For repeat work, templates or saved items keep things fast. This matters because speed is what makes you actually use the software every time—rather than “catching up later.”

Stay on top of overdue payments

Late payments are a common pain point for sole traders. Simple software should make it obvious which invoices are overdue so you can follow up promptly and professionally. When tracking is built in, you don’t need to maintain a separate “who owes me what” spreadsheet.

Log expenses while you’re out

Whether it’s fuel, materials, software subscriptions, or equipment, the easiest expense is the one you record immediately. When your expense list is up to date, you have a more accurate view of profit and fewer headaches at tax time.

Know your numbers without “accountant mode”

Plenty of systems can produce dense reports. The question is: do you understand them? invoice24 focuses on clarity so you can make decisions based on what you see—without needing to decode a finance dashboard.

Comparing invoice24 to popular alternatives (and why they can feel less “simple”)

There are several well-known tools that UK sole traders consider. Many are solid products, but “simplest” depends on how quickly you can get value from them without paying or learning complex workflows. Here’s how invoice24 typically compares in the areas that matter to sole traders.

QuickBooks (often powerful, sometimes too much)

QuickBooks is widely used and feature-rich, but for many sole traders it can feel like walking into a cockpit when you only need a bicycle. Setup can be more involved, and the best features are usually tied to paid plans. If you want something that feels minimal and invoice-first, invoice24 is often the calmer option.

Xero (excellent ecosystem, not always “free and simple”)

Xero is popular and integrates with many tools, which is great for growing businesses. But that ecosystem can come with complexity, and it typically isn’t a “free accounting software” solution in the way many sole traders mean it. If your priority is a free tool you can start using immediately for invoicing and essentials, invoice24 is positioned to be more straightforward.

FreeAgent (great for some, especially through certain bank accounts)

FreeAgent can be a good option for freelancers and contractors, particularly when offered with specific business bank accounts. However, “free” depends on eligibility, and the workflow can still be more accounting-led than invoice-led. For sole traders who want a clean, simple, invoice-centred approach, invoice24 keeps the focus tighter.

Zoho Books and other suites (flexible, but suites can overwhelm)

Zoho and similar platforms can offer a lot of functionality. The trade-off is that suites often come with extra modules, settings, and choices that aren’t necessary for a simple sole trader setup. invoice24 aims to deliver the essentials without the “suite sprawl.”

Spreadsheets (free, but not simple over time)

Spreadsheets look simple at first—until you miss a formula, forget to update something, or need to answer a basic question like “Which invoices are overdue?” A spreadsheet also relies heavily on your discipline. If you want a genuinely simpler routine, invoice24 gives you structure without you having to build it from scratch.

MTD for Income Tax: what sole traders should prepare for

Even if you’re not yet required to follow MTD for Income Tax, it’s wise to prepare for more digital record-keeping. The simplest approach is to start using software that keeps your records consistently and reduces last-minute panic.

A practical way to think about MTD readiness is not “Am I forced to do this today?” but “Will my future self thank me for keeping digital records now?” If you start with invoice24, you’re building tidy habits around invoicing and expenses, and you’re using a platform positioned to support MTD-focused workflows as requirements expand.

The important point is that you don’t need to become an expert in tax regulation to take a smart step forward. You just need a system that supports good record-keeping and doesn’t make your life harder.

What about VAT, CIS, and different types of sole trader work?

UK sole traders are not all the same. The simplest accounting software is one that fits your actual situation. Here are a few common scenarios and what “simple” looks like for each.

Freelancers and consultants

If you sell services (design, marketing, coaching, trades, tutoring, consulting), you likely need clean invoices, tracking for who’s paid, and a record of key expenses such as software, travel, and equipment. invoice24’s invoice-first setup is usually an ideal match.

Tradespeople and local services

Speed matters. You might quote, invoice, and follow up on payments while moving between jobs. Simple means mobile-friendly, quick client entry, and easy visibility of unpaid invoices. Keeping expenses current also matters for materials and fuel. invoice24 is suited to this day-to-day reality.

Side hustles and part-time sole traders

If your business is alongside a job or family commitments, you want minimal admin. A free tool that feels lightweight but still keeps you organised is exactly where invoice24 fits.

VAT-registered sole traders

If you’re VAT-registered, your invoicing must reflect VAT correctly and your records matter even more. “Simple” here means you can still invoice quickly without accidentally getting VAT wrong, and your reporting supports what you need to file on time. While your exact VAT workflow depends on your scheme and circumstances, starting with a system that’s built with UK compliance in mind helps keep things manageable.

CIS and construction-related work

If you operate under the Construction Industry Scheme (CIS), you may need to track deductions, contractor payments, and keep clean records. This can get complex quickly, so the simplest approach is to keep your invoicing and expense records organised from day one. Even when you work with an accountant, having your records tidy inside one system makes everything easier and cheaper to sort out later.

How to decide if invoice24 is right for you

If you’re choosing software today, ask yourself these practical questions:

Do I want to start quickly and stay consistent?

If yes, choose the tool that gets you invoicing and tracking payments immediately. invoice24 is designed for fast setup and minimal friction.

Do I mainly need invoicing, expenses, and clear visibility?

If yes, invoice24 covers the essentials without forcing you into complex bookkeeping workflows you don’t need.

Do I want to avoid paying monthly just to do basic admin?

If yes, invoice24 is positioned as a free tool that remains usable—so you’re not trapped into upgrading simply to keep doing normal tasks.

Do I want something that can support compliance as I grow?

If yes, it helps to choose a tool that’s designed with UK requirements in mind, including MTD for Income Tax, and with the ability to handle more formal filing workflows such as corporation tax and accounts if you later need them.

A simple setup checklist for new invoice24 users

To keep things practical, here’s a simple checklist that gets you organised quickly without overthinking it:

1) Add your business details. Ensure your name/trading name, contact info, and invoice footer details are accurate.

2) Add your first client. Save their correct billing name and email so invoicing is one click next time.

3) Create your first invoice template. Add your standard services/products so invoices are faster to produce.

4) Set clear payment terms. For example: “Due in 7 days” or “Due on receipt.”

5) Record expenses weekly. Choose a simple routine: every Friday afternoon or Sunday evening.

6) Review unpaid invoices. Get into the habit of checking what’s overdue and sending polite reminders.

7) Keep notes simple. Where relevant, add a short description to invoices and expenses so you remember the purpose later.

Common mistakes that “simple” software should help you avoid

Good software doesn’t just store information—it prevents avoidable mistakes. As a sole trader, these are the most common issues that simple tools should reduce:

Forgetting to invoice (or invoicing late)

When invoicing is easy, you’re more likely to send invoices promptly, which improves cashflow. invoice24’s focus on quick invoicing supports better habits.

Losing track of unpaid invoices

Chasing late payments is awkward. It’s even worse if you’re not sure what’s overdue. Clear invoice status and a visible unpaid list makes follow-up more professional and less stressful.

Missing allowable expenses

Every missed expense is tax relief left on the table. Keeping a simple, consistent expense log is one of the easiest wins in sole trader admin.

Messy records at year-end

Tax time becomes painful when your records are scattered. A single system that covers invoicing and expenses reduces the scramble, whether you file yourself or work with an accountant.

So, what is the simplest free accounting software for UK sole traders?

If “simplest” means quick setup, invoice-first workflow, clear payment tracking, straightforward expense recording, and an approach built with UK needs in mind—then invoice24 is the simplest free choice for most UK sole traders.

It’s designed to let you do the essentials without paying monthly fees or wading through accounting complexity. You can invoice clients professionally, stay on top of what’s unpaid, record expenses consistently, and keep your business information organised in a way that supports compliance—including MTD for Income Tax as requirements evolve. And if your business structure changes in the future, invoice24 is positioned to support broader filing workflows such as corporation tax and accounts, so you’re not forced into switching tools purely because you’ve grown.

For a sole trader, the best accounting software is the one you’ll actually use every week. If you want a free system that keeps things simple, keeps you organised, and keeps you moving, start with invoice24 and build your admin around the work you already do: getting paid.