For sole traders
Accounting software for UK sole traders
For freelancers, contractors and tradespeople who want their books and tax handled without learning accounting. Your bank feed does the typing; you confirm what each transaction is.
Books that keep themselves
- Secure, read-only open banking brings in your transactions and keeps them up to date. PactTax cannot move money.
- Each transaction gets a suggested category. Swipe to mark it business or personal, and PactTax learns your regular suppliers.
- Keep receipts with the expense they belong to.
- Profit and loss and other reports update as you go.
Invoices and getting paid
Send quotes and invoices, chase the ones that are late, and match payments to invoices as they arrive in your bank feed.
Your tax, as you go
As a sole trader you must keep records of your business income and expenses, and you may need to pay Income Tax and National Insurance on your profits. Your Self Assessment tax return and payment are due online by 31 January after the tax year ends, with a second payment deadline of 31 July if you make payments on account.
PactTax keeps a running estimate of your Self Assessment tax from your records, and suggests how much to set aside. It is an estimate, not tax advice: for a judgement call, ask a qualified accountant or tax adviser.
Ready for Making Tax Digital
Making Tax Digital for Income Tax applies to sole traders by their qualifying income: their self-employment and property income before expenses.
| Qualifying income over | In the tax year | You use it from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
PactTax keeps the digital records it needs and prepares your quarterly updates and tax return from them. Read more about Making Tax Digital for Income Tax.
PactTax prepares your Making Tax Digital for Income Tax updates from your records for you to check. Sending them to HMRC from PactTax is not available yet.
What it costs
Most sole traders need Business Starter: £6 a month excl. VAT, or £60 a year excl. VAT, which saves £12. It includes the bank feed, books, invoices, Making Tax Digital for Income Tax and VAT returns, with AI in the plan. Start with a free 14-day trial. Compare all plans.
Sources
The rules on this page come from GOV.UK. This is general guidance, not advice for your situation: for a judgement call, ask a qualified accountant or tax adviser.
- Set up as a sole trader (GOV.UK)
- Self Assessment tax returns: deadlines (GOV.UK)
- Check if you're eligible for Making Tax Digital for Income Tax (GOV.UK, updated 26 March 2026)
- Work out your qualifying income for Making Tax Digital for Income Tax (GOV.UK, updated 11 September 2026)
Last reviewed 20 October 2026.
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