Zoho Books wins for most UK sole traders and landlords

Zoho Books vs FreeAgent: the value MTD ITSA showdown

Both are HMRC-recognised for MTD ITSA. Both are well-suited to UK sole traders. The decision usually comes down to whether you bank with NatWest, and how much you value FreeAgent’s tax timeline.

Price

• Zoho Books Free: £0/month (up to 1,000 invoices/year)
• Zoho Books Standard: £12/month
• FreeAgent: Free with NatWest/RBS; £19/month standalone

If you bank with NatWest, both are free — but FreeAgent is more capable for UK sole traders in that scenario. If you do not bank with NatWest, Zoho Books is cheaper by £7/month.

MTD ITSA: equivalent

Both platforms submit quarterly updates, end-of-period statements, and final declarations directly to HMRC. For compliance purposes, neither is ahead.

FreeAgent’s tax timeline advantage

FreeAgent’s single greatest differentiator is its tax timeline — a real-time view of your upcoming MTD ITSA deadlines and estimated tax liability. For sole traders who are anxious about missing quarterly submission dates, this feature alone can justify the higher cost over Zoho Books.

Zoho Books’ accounting depth

Zoho Books Standard includes inventory management, vendor credits, and recurring transactions — features FreeAgent’s Sole Trader plan lacks. For slightly more complex sole traders, Zoho Books has more room to grow without upgrading to an expensive plan.

Accountant ecosystem

Both have smaller accountant communities than Xero or QuickBooks. FreeAgent has a slightly larger UK presence in the accountant community. Ask your accountant before switching.

Our verdict

Use Zoho Books if: you want the cheapest HMRC-recognised MTD ITSA option (free plan or £12/month Standard), or if you need more accounting features at low cost.

Use FreeAgent if: you bank with NatWest (making it free), or if you want the best tax deadline and timeline UI for UK sole traders.