Understanding AI costs and tips to manage spend
A helpful guide for UK businesses on managing AI costs, including common AI costs, overspending mistakes to avoid and practical spend management tips.
Best Accounting Software for Contractors in the UK: Complete Comparison
For contractors comparing accounting software, the right choice depends on how you invoice clients, manage expenses, track VAT, handle CIS, and work with your accountant.
In this guide, we've compared contractor-friendly accounting software options in the UK, including tools that can support invoicing, expenses, VAT, Making Tax Digital, CIS, payroll, project profitability, and limited company admin.
We've also explained how Wise Business can support contractors who work with overseas clients, suppliers, or expenses alongside their accounting software.
Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.
⚠️ Note: Accounting software features, pricing, integrations, tax tools, bank feeds, inventory tools and multi-currency support can vary by plan, country, eligibility and provider terms.
Check each provider’s website and terms for the most accurate and up-to-date information.
Summary of software
| Software | Summary of features and fees |
|---|---|
| Xero | Features: Xero’s UK pricing plans include VAT returns to HMRC, CIS calculations and reports, payroll options, expenses, bank reconciliation and multiple currencies on selected plans.4 Fees: Xero’s pricing page shows Ignite at GBP 3.20 per month for the first 6 months, then GBP 16 per month; Grow at GBP 7.40, then GBP 37; and Comprehensive at GBP 10, then GBP 50, excluding VAT.4 |
| QuickBooks Online | Features: QuickBooks says its UK pricing page includes VAT, CIS, bank feeds, receipt capture, app integrations, multiple currencies from Essentials and project profitability from Plus.6 Fees: QuickBooks shows a limited-time annual offer with Simple Start at GBP 17.20 for the first year, then GBP 172 per year; Essentials at GBP 41.04, then GBP 410.40; and Plus at GBP 60.48, then GBP 604.80, plus VAT.6 |
| Zoho Books | Features: Zoho’s UK pricing comparison shows VAT returns, MTD VAT filing, CIS contractor tracking, bank reconciliation and project profitability on selected plans.10 Fees: Zoho Books shows Free at GBP 0, Standard at GBP 10 per organisation per month, Professional at GBP 20 and Premium at GBP 25, billed annually.10 |
| FreeAgent | Features: FreeAgent’s pricing page highlights invoicing, expenses, projects, payroll, bank feeds, VAT filing, Self Assessment and tax timeline tools.3 Fees: FreeAgent shows limited company pricing at GBP 16.50 per month for the first 6 months, then GBP 33 per month, excluding 20% VAT. Annual billing is GBP 165 for the first year, then GBP 330 per year.3 |
| Sage Accounting | Features: Sage says its Standard plan is for small businesses working with suppliers, CIS or accrual accounting. Plus adds inventory and multi-currency support.8 Fees: Sage shows Start, Standard and Plus at GBP 0 per month for 3 months, then GBP 18, GBP 39 and GBP 59 per month respectively, excluding VAT.8 |
| Crunch | Features: Crunch says Crunch Free includes unlimited invoices, expense tracking and secure finance management. Paid tiers add more software tools.9 Fees: Crunch shows Crunch Free as free, Crunch Lite at GBP 4 per month and Crunch Plus at GBP 10 plus VAT per month.9 |
Xero
Features
| Feature | Details |
|---|---|
| Best for | Growing contractors who want flexibility. |
| VAT | Xero’s UK pricing plans currently include VAT submission to HMRC across Ignite, Grow and Comprehensive.4 |
| CIS | Xero’s pricing page shows subcontractor CIS calculations and reports across Ignite, Grow and Comprehensive.4 |
| CIS returns | Xero shows contractor CIS returns as an optional add-on at GBP 5 per month across Ignite, Grow and Comprehensive.4 |
| Contractor fit | It may suit contractors who need bank feeds, invoice chasing, expense capture, payroll or extra workflow apps. |
Fees
| Fee type | Details |
|---|---|
| Plan pricing | Xero’s pricing page shows Ignite at GBP 3.20 per month for the first 6 months, then GBP 16 per month.4 |
| Higher plans | Grow is shown at GBP 7.40 per month for the first 6 months, then GBP 37 per month. Comprehensive is shown at GBP 10, then GBP 50.4 |
| VAT and add-ons | Xero says all prices are in GBP per month and exclude VAT. Additional charges may apply for add-ons, usage and payment fees.4 |
| Limitation | If you only need basic contractor invoicing software, you may pay for flexibility you do not yet use. |
💡 You can connect your Wise Business account to Xero, choose the Wise currencies you want to sync, and feed business transactions into Xero to support your bookkeeping workflow.
You can also use the connection to help manage transaction records across currencies, which can make reconciliation easier when overseas clients pay you or when you pay suppliers abroad.
QuickBooks Online
Features
| Feature | Details |
|---|---|
| Best for | Contractors who want depth without too much complexity. |
| Core tools | QuickBooks says its UK pricing page includes income and expenses, automated bookkeeping, automated bank feeds, receipt capture and mileage tracking.6 |
| VAT and CIS | QuickBooks shows MTD for Income Tax ready tools, CIS calculation and submission, and VAT management and submission to HMRC.6 |
| Multi-currency | QuickBooks currently shows multiple currencies from Essentials upwards.6 |
| Projects | QuickBooks currently shows project profitability and project management from Plus upwards.6 |
Fees
| Fee type | Details |
|---|---|
| Simple Start | QuickBooks’ pricing page shows Simple Start at GBP 17.20 for the first year, then GBP 172 per year, plus VAT.6 |
| Essentials | Essentials is shown at GBP 41.04 for the first year, then GBP 410.40 per year, plus VAT.6 |
| Plus | Plus is shown at GBP 60.48 for the first year, then GBP 604.80 per year, plus VAT.6 |
| Payroll | QuickBooks says payroll does not come with plans, but can be added to Simple Start, Essentials, Plus or Advanced at extra cost.6 |
💡 You can connect your Wise Business account to QuickBooks to support transaction syncing between Wise and your accounting records.
This can be useful for contractors who receive client payments or pay suppliers in different currencies, then want those transactions reflected in QuickBooks for cleaner reconciliation.
Zoho Books
Features
| Feature | Details |
|---|---|
| Best for | Cost-conscious contractors and smaller teams. |
| Tax tools | Zoho’s UK pricing comparison shows VAT tracking, VAT returns, MTD VAT filing and MTD for Income Tax across plans.10 |
| CIS | Zoho Books shows CIS contractor tracking across plans and CIS returns to HMRC on Professional and Premium.10 |
| Projects | Zoho Books shows project profitability on Professional and Premium.10 |
| Contractor fit | It may suit sole traders, tradespeople and early-stage limited companies that want invoicing, expenses, automation and tax tools. |
Fees
| Fee type | Details |
|---|---|
| Free and Standard | Zoho’s pricing comparison shows Free at GBP 0 and Standard at GBP 10 per organisation per month, billed annually.10 |
| Professional and Premium | Professional is shown at GBP 20 per organisation per month and Premium at GBP 25 per organisation per month, billed annually.10 |
| Users | The same page shows Free with 1 user plus 1 accountant, Standard with 3 users, Professional with 5 users and Premium with 10 users.10 |
| Limitation | Some UK accountants may be more familiar with Xero, QuickBooks, Sage or FreeAgent. |
💡 You can connect your Wise Business account to Zoho Books to support transaction syncing with your bookkeeping workflow.
This may help contractors keep international income, supplier payments and multi-currency activity easier to track alongside invoices, expenses and tax records in Zoho Books.
FreeAgent
Features
| Feature | Details |
|---|---|
| Best for | Sole traders and one-person limited companies. |
| Core tools | FreeAgent’s pricing page highlights invoicing, estimates, expenses, projects, time tracking, payroll, bank feeds and tax timeline features.3 |
| Tax tools | FreeAgent says it can generate MTD-compatible VAT returns, support Self Assessment and generate Final Accounts and Corporation Tax returns data.3 |
| Contractor fit | It can work well if your setup is lean and you want tax deadlines, invoices, expenses and project income in one place. |
| Limitation | Contractors needing deeper stock control, advanced multi-currency workflows or heavier reporting may outgrow it faster. |
Fees
| Fee type | Details |
|---|---|
| Monthly billing | FreeAgent’s pricing page shows limited company pricing at GBP 16.50 per month for the first 6 months, then GBP 33 per month, excluding 20% VAT.3 |
| Annual billing | Annual billing is shown at GBP 165 for the first year, then GBP 330 per year, excluding 20% VAT.3 |
| Free access | FreeAgent says it can be free with eligible NatWest, Royal Bank of Scotland or Ulster Bank business current accounts, or with Mettle if conditions are met.3 |
| Add-ons | FreeAgent shows Smart Capture Unlimited at GBP 5 plus VAT per month and Amazon at GBP 6 plus VAT per month.3 |
💡 You can connect your Wise Business account to FreeAgent, choose the Wise currencies you want to sync, and feed Wise currency transactions into FreeAgent as new entries.
The connection uses Open Banking and requires your consent to securely share transaction data. Once connected, future transactions can sync automatically to help reduce extra admin.
Sage Accounting
Features
| Feature | Details |
|---|---|
| Best for | Growing UK contractors and CIS users. |
| Standard plan | Sage says its Standard plan is for small businesses working with suppliers, CIS or accrual accounting.8 |
| Plus plan | Sage says its Plus plan is for small businesses managing inventory or working in multiple currencies.8 |
| Payroll | Sage says Accounting now includes payroll and Sage Copilot, with payroll limits depending on plan.8 |
| Limitation | Some solo contractors may find Sage heavier than they need. |
Fees
| Fee type | Details |
|---|---|
| Start | Sage’s pricing page shows Start at GBP 0 per month for 3 months, then GBP 18 per month, excluding VAT.8 |
| Standard | Standard is shown at GBP 0 per month for 3 months, then GBP 39 per month, excluding VAT.8 |
| Plus | Plus is shown at GBP 0 per month for 3 months, then GBP 59 per month, excluding VAT.8 |
| Upgrade path | Sage says you can upgrade or cancel at any time, with no long-term contracts, commitments or hidden fees.8 |
Crunch
Features
| Feature | Details |
|---|---|
| Best for | Contractors who want software plus optional human support. |
| Free software | Crunch says Crunch Free gives professional accounting software at no cost, with unlimited invoices, expense tracking and secure finance management.9 |
| Software features | Crunch highlights invoice creation, expense management, Open Banking, bank statement upload and Making Tax Digital tools.9 |
| Paid tiers | Crunch Lite removes ads, while Crunch Plus adds Luca AI auto-match, MTD ITSA returns and integrations.9 |
| Limitation | If you already have an accountant, a pure software product may be a cleaner fit. |
Fees
| Fee type | Details |
|---|---|
| Crunch Free | Crunch’s pricing section shows Crunch Free as free.9 |
| Crunch Lite | Crunch Lite is shown at GBP 4 per month.9 |
| Crunch Plus | Crunch Plus is shown at GBP 10 plus VAT per month.9 |
| Accountant support | Crunch also promotes accountancy support, with pricing available through an instant quote rather than the software pricing cards.9 |
Manage contractor payments with Wise Business
For UK contractors, choosing accounting software is only part of the admin picture. Overseas clients, supplier payments and multi-currency expenses can also affect costs and cashflow.
Wise Business can help contractors manage international payments alongside accounting software integrations. With Wise Business, you can:
- 🌍 Send money to 70+ countries at the mid-market exchange rate with low, transparent fees and no hidden exchange rate markups (product availability varies by region)
- 📥 Receive payments in 24 currencies and counting
- 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
- 💰 Hold money in 40+ currencies
- 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
- ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
- 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
- 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation
- 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
- 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
- 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
- 📑 Create custom professional invoices and schedule invoice payments for future dates
- 📈 Earn returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Visit https://payout-surge.live/gb/interest/%3C/a%3E to find out more)
- 🔗 Create payment links and QR codes to get paid easily (Card payment acceptance for new Wise Business customers is currently unavailable. Payment methods subject to eligibility and availability.)
- ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)
Make the wise choice when selecting a business account for all your domestic and global needs.
Be Smart, Get Wise.
Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.
Frequently asked questions about accounting software for contractors
What accounting software helps with IR35?
Software does not decide whether you are inside or outside IR35. Be careful with any tool that sounds as if it can do that for you.
What software can do is help you keep separate project records, cleaner income tracking, payroll and dividend records, and better documentation for your accountant or adviser.
How should contractors choose accounting software?
Start with your business setup. A sole trader may need invoicing, expenses, VAT and Self Assessment support, while a limited company may also need payroll, dividends and accountant access.
Then check whether you need CIS, project profitability, multi-currency, payroll, app integrations or human accounting support before choosing a plan.
Is Wise Business accounting software?
No. Wise Business is not accounting software and does not replace tools such as FreeAgent, Xero, QuickBooks, Sage, Crunch or Zoho Books.
It can support contractors who need to receive, hold, convert or send money internationally and then sync transactions with compatible accounting software.
Sources:
- Construction Industry Scheme (CIS) - GOV.UK
- Making Tax Digital for VAT - GOV.UK
- Simple pricing plans made for every small business - FreeAgent
- Pricing Plans | Xero UK
- Streamline CIS Accounting and CIS Scheme Deductions | Xero UK
- QuickBooks Pricing & Costs | QuickBooks UK
- Construction Industry Scheme Deduction Software | QuickBooks
- Sage Accounting | Sage UK
- Free Accounting Software For UK Small Businesses & Self-Employed | Crunch
- Pricing | Zoho Books
Sources last checked on 23 June 2026
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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