Xero vs FreeAgent vs QuickBooks for UK Freelancers 2026
For most UK freelancers and sole traders, FreeAgent is the simplest fit: it is built around Self Assessment, is HMRC-recognised for Making Tax Digital, and is free if you bank with NatWest, RBS, Ulster Bank or Mettle. Xero is stronger if you want a huge app ecosystem, and QuickBooks suits people who live on their phone. Check current prices before you commit.
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If you have ever Googled “best accounting software for UK sole traders,” you will have seen the same two names over and over: Xero and QuickBooks. FreeAgent usually sits a few results down, which is odd, because for plenty of freelancers it is the one that fits best. It was designed for exactly your situation — one person, a handful of clients, a Self Assessment return looming.
This guide compares all three on the things that actually matter when you work for yourself: how well they handle Self Assessment and Making Tax Digital, what they cost, how much faff the day-to-day is, and what happens when your business grows. We have written separate deep dives on each product, so this is the decision guide, not a feature dump.
The Short Version
| FreeAgent | Xero | QuickBooks | |
|---|---|---|---|
| Best for | Sole traders and freelancers | Growing businesses and bookkeeper-friendly setups | Mobile-first users who like receipt capture |
| Self Assessment filing | Built in, a core strength | Via add-on or your accountant | Supported, depends on plan |
| MTD for Income Tax | HMRC-recognised | HMRC-recognised | HMRC-recognised |
| Free option | Free with some business bank accounts | No (trial only) | No (trial only) |
| App ecosystem | Smaller | Very large | Large |
| Learning curve | Gentle | Moderate | Gentle |
“HMRC-recognised” means each product appears on HMRC’s list of software that works with Making Tax Digital. Lists change, so confirm it on GOV.UK before you pay — our guide to Making Tax Digital for Income Tax explains who has to join and when.
FreeAgent: Built for the Self-Employed
FreeAgent’s big idea is that it thinks like a sole trader. It estimates your tax bill as you go, shows you how much to set aside, and can file your Self Assessment return directly to HMRC. If you have ever done your return in a panic on 30 January, that feature alone can feel like a small miracle.
- Where it shines: tax estimates, Self Assessment filing, project and time tracking, and a calm, uncluttered interface.
- Price angle: free for customers of NatWest, Royal Bank of Scotland, Ulster Bank and Mettle business accounts (check the bank’s current terms). Otherwise it is a paid monthly plan — third-party review sites currently quote different figures, so check FreeAgent’s own pricing page.
- Where it lags: fewer third-party integrations than Xero, and it is less commonly used by bookkeepers, so if your accountant insists on another platform you may be overruled.
Try FreeAgent
If you already bank with NatWest, RBS, Ulster Bank or Mettle, look at the free offer first — it can save you a year of subscription fees.
Xero: The Ecosystem Play
Xero is the product accountants and bookkeepers know best in the UK, which matters more than it sounds. If you hire a bookkeeper or switch accountants, the odds are decent they will already know Xero. It also connects to a vast library of third-party apps for everything from expense capture to inventory.
- Where it shines: bank feeds, reporting, app marketplace, and room to grow if you add staff or become a limited company.
- Where it lags: it is not built around Self Assessment, so sole traders often pay for an add-on or lean on their accountant to file. Pricing is tiered and gets pricier as you add features.
- Read more: our Xero review and the Xero vs QuickBooks comparison go deeper.
Try Xero
A strong choice if you expect to grow, or if your accountant or bookkeeper already uses it.
QuickBooks: The Phone-First Option
QuickBooks (from Intuit) has a friendly interface and a good mobile app. Snapping receipts, tracking mileage and sending invoices from your phone is straightforward, which suits freelancers who are rarely at a desk. It also has a big user base, so help articles and videos are easy to find.
- Where it shines: mobile app, invoicing, receipt capture, and ease of use for beginners.
- Where it lags: as with Xero, tax filing for sole traders is less central than in FreeAgent, and plan features vary by tier.
- Read more: QuickBooks Online review and Sage vs QuickBooks UK.
Try QuickBooks
Good for freelancers who run their business from a phone and want simple invoicing and receipt capture.
Which Should You Choose?
- Pick FreeAgent if you are a sole trader who wants Self Assessment handled inside the software, or you bank with one of the partner banks.
- Pick Xero if you want the biggest app ecosystem, expect to hire help, or may incorporate later.
- Pick QuickBooks if you are mobile-first and want the least intimidating interface.
- Still unsure? Use the free trials. Spend one evening entering real invoices and expenses in each. The one you do not dread opening is the right one.
For a wider roundup that includes Sage and others, see our best accounting software for UK small business guide.
Costs to Watch For
Subscription prices are only part of the story, and they change often, with frequent introductory discounts. Before you commit, check four things on each vendor’s own pricing page: the monthly price after the promotional period, whether Self Assessment or MTD filing is included, how many invoices or bank connections the plan allows, and whether payroll or extra users cost extra. Also factor in your accountant’s time — a platform they already use can save fees.
Frequently Asked Questions
Is FreeAgent better than Xero for a sole trader?
For many sole traders, yes, because FreeAgent is built around Self Assessment and shows your estimated tax as you go. Xero is better if you want a large app ecosystem or expect to grow into a larger business.
Is FreeAgent really free?
FreeAgent has offered free access to customers of certain UK business bank accounts, including NatWest, Royal Bank of Scotland, Ulster Bank and Mettle. Terms can change, so confirm with the bank and FreeAgent.
Do all three work with Making Tax Digital for Income Tax?
Xero, QuickBooks and FreeAgent have all been listed as HMRC-recognised for MTD for Income Tax. Always check HMRC’s current list on GOV.UK before choosing.
Can I switch software later?
Yes. All three let you export data, and many accountants can help migrate. It is easier early on, when you have fewer transactions, than after several years.
Do I need an accountant if I use accounting software?
Not always. Many simple sole-trader setups work fine with good software and weekly bookkeeping, but an accountant can be worth it for complex situations such as multiple income streams or a limited company.
Final Thoughts
There is no single winner here, but there is probably a clear winner for you. If you are a sole trader whose biggest worry is the tax return, FreeAgent deserves a serious look — especially if your bank gives it away. If you want maximum flexibility and a product your accountant likely knows, Xero is the safe bet. If you want the easiest phone-first experience, QuickBooks is hard to fault.
Whichever you choose, the best accounting software is the one you actually open every week. Take a free trial, put in real data, and let your own habits decide.
Compare UK Accounting Software
See how these three stack up against Sage and others.
Disclaimer: This article is for general information only and is not tax, legal or financial advice. Rules, thresholds and prices change; confirm current details on the official source or with a qualified accountant. Affiliate links are present in this article.