Tool Review · Updated 2026-04
Zoho Books
Zoho Books is the strongest value proposition on this site — HMRC-recognised for all phases, starting from free, and at £12/month for Standard it significantly undercuts Xero (£33/month) and QuickBooks (£14/month) while delivering equivalent MTD ITSA capability.
Disclosure: This page contains affiliate links. We may earn a commission if you sign up via our links — at no extra cost to you.
Verified April 2026 · Source: GOV.UK
Zoho Books and MTD ITSA
Zoho Books is HMRC-recognised for Making Tax Digital for Income Tax Self Assessment across all three rollout phases — and it is our top pick for sole traders who want the most affordable route to compliance.
MTD ITSA Rollout Phases
- Phase 1 — April 2026 Live ✓ Supported
Income over £50,000
- Phase 2 — April 2027 ✓ Supported
Income over £30,000
- Phase 3 — April 2028 ✓ Supported
Income over £20,000
Phase support verified against GOV.UK software finder . Always confirm with the software provider before your obligation date.
GOV.UK verification: Zoho Books’ MTD ITSA recognition is listed on the GOV.UK software finder. Status correct as of April 2026.
Verified April 2026 · Source: GOV.UK
Affiliate disclosure: MTDStack earns a 15% recurring commission if you sign up for Zoho Books via our links. This does not affect our recommendation — Zoho Books is independently reviewed and recommended on its merits.
The free plan: who it’s right for
Zoho Books’ free plan allows up to 1,000 invoices per year — roughly 83 per month. For most sole traders in Phase 1 (income over £50,000), this covers all MTD ITSA quarterly submissions without any monthly cost. If you invoice 3–4 clients per month, you will never hit the limit.
The free plan includes full MTD ITSA quarterly updates. You connect your Government Gateway account, categorise your income and expenses, and submit directly to HMRC at the end of each quarter.
Screenshot: Zoho Books MTD ITSA submission
Zoho Books quarterly update interface for MTD ITSA — reviewed April 2026.
The value case at £12/month
If you exceed the free plan invoice limit, Zoho Books Standard at £12/month (£144/year) is the cheapest paid option on this site with full MTD ITSA capability. For comparison:
- Zoho Books Standard: £12/month
- QuickBooks Simple Start: £14/month
- FreeAgent Sole Trader: £19/month
- Xero Standard: £33/month
For the purposes of MTD ITSA quarterly submissions, all four are equivalent. You are paying Xero’s premium for its reporting depth, ecosystem, and brand familiarity — not for better compliance outcomes.
The accountant question
Zoho Books has a smaller UK accountant community than Xero or QuickBooks. If your accountant does not already use Zoho, you may need to export reports and share them manually. This is worth asking your accountant before switching.
MTD ITSA Phase Support
MTD ITSA Rollout Phases
- Phase 1 — April 2026 Live ✓ Supported
Income over £50,000
- Phase 2 — April 2027 ✓ Supported
Income over £30,000
- Phase 3 — April 2028 ✓ Supported
Income over £20,000
Phase support verified against GOV.UK software finder . Always confirm with the software provider before your obligation date.
Zoho Books is HMRC-recognised for all three MTD ITSA phases. The Free plan covers most sole traders below the invoice limit. Affiliate link active via Zoho's direct programme.
Landlord support: Property income and expenses can be tracked using standard categories. Suitable for simple buy-to-let alongside self-employment income.
CIS support: Basic CIS recording available. Not a dedicated CIS tool — Sage recommended for active CIS subcontractors.
Pricing (GBP)
| Plan | Price/mo | Contacts | |
|---|---|---|---|
| Free | £0 | Up to 1,000 invoices/year, 1 user (Free plan) | Get free → |
| Free | Free | Get started → | |
| Standard | £12/mo | Get started → | |
| Professional | £24/mo | Get started → |
Prices shown are monthly and exclude VAT. Annual billing available at a discount. Free plan limited to 1,000 invoices/year — suitable for most sole traders.
Last verified: April 2026
What we like
- + HMRC-recognised for all three MTD ITSA phases
- + Free plan available (1,000 invoices/year)
- + Standard plan at £12/month is the cheapest full MTD ITSA option
- + Strong mobile app with receipt capture
- + Clean, modern interface with excellent mobile app
What we don't like
- − Less well-known in UK accountant community than Xero/QuickBooks
- − Free plan invoice limit (1,000/year) may be restrictive for busier sole traders
- − Customer support response times can be slower than Sage or Xero
Who it's best for
- ✓ Budget-conscious sole traders who need HMRC-recognised MTD ITSA software
- ✓ Sole traders under the 1,000 invoice/year limit (free plan)
- ✓ Users migrating from spreadsheets who want a clean, affordable starting point
- ✓ Landlords with simple buy-to-let income alongside self-employment
Not ideal if
- ✗ CIS subcontractors (use Sage)
- ✗ Users who need their accountant on the platform (smaller UK accountant network)
- ✗ Complex businesses needing multi-entity or advanced inventory