Choosing Accounting Software for a UK Small Business

Picking accounting software in the UK is harder than it should be. Marketing pages all claim the same things — MTD-ready, "save hours", "loved by accountants" — so this guide cuts through to what actually matters for a UK small business: MTD compatibility, tax filing scope, real pricing, and where each product genuinely shines.

We cover Xero, QuickBooks Online, FreeAgent, Sage Business Cloud, FreshBooks and Unfiled.

Compare current plans and filing scope

Subscription prices, introductory offers, bank-funded licences and tax-filing features change. Compare the full renewal price, VAT, user limits, payroll charges and the exact return you need before buying. A bookkeeping subscription does not establish CT600 or MTD Income Tax filing support.

• Xero: check its current accounting plans and Xero Tax, which is offered through its accountant/bookkeeper partner service. It is incorrect to say Corporation Tax always requires a third-party product.
• QuickBooks, Sage and FreshBooks: compare the current UK plan and filing service with the provider; do not rely on an old starting-price table or assume all tiers include the same taxes.
• FreeAgent: current pricing and bank eligibility distinguish paid subscriptions from bank-funded licences. The latter depend on retaining an eligible bank account and meeting the stated conditions; optional add-ons may cost extra. This is not an unconditional “free for life” promise.

Questions to ask every provider

Can this plan file the exact return, supplementary pages and accounting period you need? Is submission included or charged separately? Can you export complete records and preserve digital links? Does your accountant have the access they need?

Unfiled — accounts and direct CT600 filing for micro-companies

Unfiled prepares statutory accounts, tax computations and CT600 returns from bank transactions or ready year-end figures. For supported UK micro-company returns, you can review the documents, complete the declaration and submit directly to HMRC from Unfiled. It checks your company and accounting period before payment and shows HMRC's response.

Preparation and review are free. See current pricing for the CT600 filing fee and any current offer. VAT, Self Assessment and Companies House filing are separate services; check the scope of each service you need.

Pick Unfiled if: you run a supported UK micro-company and want to prepare accounts and file your CT600 directly with HMRC from transactions or figures you already have.

How to choose — three questions

1. Do you have an accountant? Use whatever they use. Workflow trumps features.
2. What do you actually file? Check each provider's current support for your tax service, company and accounting period. Unfiled supports direct CT600 filing for eligible UK micro-companies; that does not establish support for a different return.
3. What's your real budget? Compare subscription charges, add-ons and per-filing fees. Check Unfiled's current filing price and any offer before paying.

Try Unfiled

Get started with Unfiled to prepare your accounts and check eligibility for direct CT600 filing.