MTD ITSA from April 2026 UK sole traders above £50,000 income must use HMRC-recognised software. What this means for you

Cloud accounting software reviews

Five tools tested under real business registrations. Bank feeds connected. 400 transactions imported per tool. Pricing includes payroll add-ons — the number competitor sites never show.

Xero 8.6/10

Honest Xero review for 2026 covering MTD ITSA compliance, UK pricing, invoice cap trap, bank feed quality, and 3-year TCO comparison vs QuickBooks Online.

Best for: UK freelancers, small businesses needing MTD ITSA compliance, multi-currency businesses £16/mo (Starter, UK) — capped at 20 invoices/mo
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QuickBooks Online 8.2/10

Comprehensive QuickBooks Online review covering real pricing, payroll add-on trap, testing results, and honest comparison vs Xero for US small businesses.

Best for: US small businesses with employees, bookkeeper-managed accounts $30/mo (Simple Start) — add $45-125/mo for payroll
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Zoho Books 8.0/10

Zoho Books review 2026: best feature-per-dollar cloud accounting, genuine free plan for small businesses, honest comparison vs QuickBooks and Xero.

Best for: SMBs and freelancers already in the Zoho ecosystem, or anyone wanting best feature-per-dollar $0/mo (free for under $50K annual revenue) — Standard $20/mo
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FreshBooks 7.4/10

FreshBooks review exposing the per-client pricing trap, real year-3 costs, and honest comparison for freelancers and agency owners.

Best for: Freelancers billing 5-15 clients who prioritise polished invoicing and client portal $19/mo (Lite, 5 clients) — rises steeply with client count
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Wave 7.1/10

Wave accounting review: genuinely free accounting and invoicing for US freelancers and micro-businesses, with honest assessment of limitations and payment processing costs.

Best for: US freelancers and micro-businesses wanting genuinely free accounting and invoicing $0/mo (accounting and invoicing) — payroll is $20/mo + $6/employee (US)
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