There is no single best package, and HMRC recommends none. As listed on 19 October 2026, the six below cost from nothing to £39 a month plus VAT. Electricians should check CIS, reverse charge invoices and receipt capture.
Accounting software runs the daily paperwork: quotes, invoices, bank feeds, receipts and VAT.
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Founding offer on Trades Tax (coming later), first 500 trades clients: £5 a month for your first 3 months, then £35 a month. Cancel any time. We’ll remind you before it changes. Prices include VAT. No payment is taken while you wait.
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Two kinds of job, two sets of rules
CIS. HMRC's CIS 340 guide lists installing systems of lighting and power supply as construction work, but says repairing, servicing or extending an existing system is not included on its own, nor are security systems. Private householders are not counted as contractors. So site work for a builder usually has CIS taken off your labour, 20% if you are registered and nothing with gross payment status, while a homeowner's job does not. Materials you paid for are left out of the deduction, and the contractor can ask for receipts. More in does CIS apply to electricians.
VAT. You must register once taxable turnover for the last 12 months goes over £90,000, or if you expect it to in the next 30 days alone. Once you are registered, the domestic reverse charge applies to standard and reduced rate building services reported within CIS, where your customer is registered for VAT and CIS and has not told you in writing that they are an end user or intermediary supplier. It does not apply to a private domestic customer.
MTD. Unless you are exempt, Making Tax Digital for Income Tax (MTD) has applied since 6 April 2026 if your qualifying income was over £50,000 in 2024-25, and starts on 6 April 2027 if it was over £30,000 in 2025-26, or on 6 April 2028 if it is over £20,000 in 2026-27.
Prices as listed on 19 October 2026
Plans for a sole trader, or the next plan up where it adds what an electrician needs. Including-VAT figures are ours, at 20%.
| Product and plan | Price as listed | Including VAT | Offer and limits |
|---|---|---|---|
| Xero Simple | £7 a month + VAT | £8.40 | Not VAT registered only: quotes, 10 invoices, receipt capture, subcontractor CIS |
| Xero Ignite | £18 a month + VAT | £21.60 | 90% off for 6 months for new UK customers; quotes plus 20 invoices and 10 bills |
| Xero Grow | £39 a month + VAT | £46.80 | Same offer; no invoice cap shown |
| QuickBooks Sole Trader Plus | £10 a month + VAT | £12 | 90% off for 6 months for new customers, instead of the 30-day free trial; 1 user; no VAT returns |
| FreeAgent sole trader | £19 a month + VAT | £22.80 | Half price for 6 months; free with a NatWest, RBS or Ulster Bank business current account, or Mettle if you make at least one transaction a month; Smart Capture reads 10 receipts a month, unlimited for £5 + VAT |
| Clear Books Sole Trader / Sole Trader Plus | £5 / £15 a month + VAT | £6 / £18 | Unlimited users; a free Sole Trader plan too |
| Zoho Books Free / Standard | £0 / £12 a month, excluding local taxes | £0 / £14.40 | Standard £10 a month billed yearly; Free has 1 user plus 1 accountant and 1,000 invoices a year |
| Pandle / Pandle Pro | Free / £5 a month + VAT | £0 / £6 | Pro adds bank feeds and receipt uploads |
What each pricing page says it does
The finder columns come from our MTD software census of 18 October 2026: 156 products ready for sole traders, 47 also ready for CIS.
| Product | Its pricing page lists | CIS on the tax return (finder) | Sole trader MTD (finder) |
|---|---|---|---|
| Xero | Document capture, VAT returns, subcontractor CIS calculations; projects only on Ultimate, £70 + VAT | Ready now | Ready now |
| QuickBooks | Bank feeds, receipt capture, estimates, "Calculate and submit CIS"; subcontractors only on Sole Trader | Ready now | Ready now |
| FreeAgent | Bank feeds, estimates, projects, VAT returns, quarterly updates | Ready now | Ready now |
| Clear Books | Free plan works for CIS subcontractors; paid plans add bank feeds and receipt scanning; Plus adds MTD VAT and the VAT domestic reverse charge | Ready now | Ready now |
| Zoho Books | Quotes, receipt scans, up to 3 projects, MTD VAT returns, tracking CIS contractors on Free | In development | Ready now |
| Pandle | Pro: bank feeds, receipt uploads, projects, mileage | In development | Ready now |
Only Clear Books named the reverse charge on its pricing page; that does not mean the others cannot do it. If you pay a self-employed mate and need contractor returns, Xero lists them as a £5 a month + VAT extra on Ignite and above, Clear Books on its Medium plan at £34 + VAT and Zoho Books on Professional at £24 a month, excluding local taxes.
What this means for you
Below the VAT threshold and mainly on domestic work, a cheap plan with bank feeds, receipt capture and quotes covers most of it. In our reading, job tracking earns its place on rewires paid in stages, setting cable and fittings against the right job.
Once you are VAT registered and do CIS work, you may need normal and reverse charge invoices in the same quarter. GOV.UK says to make sure your accounting software can deal with the reverse charge. At the year end, HMRC adds your CIS deductions to your MTD tax return, and you must check them before you submit.
Our Trades Tax plan will keep your books from your bank feed. Coming later. Not available yet: starts once our HMRC registrations are complete. Once our registrations are complete, we'll send your quarterly updates and tax return to HMRC for you, after you confirm the figures. Our Trades Tax plan is £35 a month or £350 a year including VAT, and VAT returns add £10 a month including VAT on the monthly plan. We don't do CIS contractor returns, so if you pay subcontractors, software such as Xero or a firm is the better fit.
Steps to choose your software
- Use the free MTD check to see when MTD starts for you.
- Sort three months of jobs into CIS site work, domestic jobs and repairs.
- Note whether you are VAT registered, or close to £90,000.
- Shortlist two products whose finder entry shows sole trader ready now, and CIS ready too if any contractor pays you under CIS.
- Ask each vendor about reverse charge invoices, and contractor returns if you pay anyone.
- Check the price after any offer, whether VAT is added, and the invoice, receipt and user limits.
- Try it with a month of real quotes, wholesaler receipts and CIS statements.
See also the best MTD software for electricians, what bookkeeping costs electricians and the trades section.
Hold your place on the trades waitlist
We’ll email you when Trades Tax opens, with the founding offer while places last. No payment is taken.
Questions people ask
Does HMRC recommend any accounting software for electricians?
No. GOV.UK says the software on its finder has been through HMRC's recognition process, and that HMRC does not recommend any product or software provider.
Which accounting software handles the VAT domestic reverse charge?
Of the six pricing pages we read on 19 October 2026, only Clear Books named it, on its Sole Trader Plus plan at £15 a month plus VAT. The others did not mention it there, which does not mean they lack it, so ask the vendor before you buy.
Do I need CIS features if most of my work is for homeowners?
Only if a contractor pays you. HMRC's CIS 340 guide says private householders are not counted as contractors. But if a builder pays you for work on a householder's job, the builder must operate CIS on your payments.
What if I pay a self-employed mate to help on site jobs?
Then you may be a CIS contractor yourself, with monthly returns to file. Xero lists contractor CIS returns as an extra, Clear Books lists CIS submissions on its Medium plan and Zoho Books on its Professional plan. We don't do CIS contractor returns.
Is free accounting software enough for an electrician?
It can be for a few jobs a month and no VAT. On 19 October 2026 Zoho Books Free listed MTD for Income Tax, quotes, 1,000 invoices a year and 50 receipt scans a month, and its Standard plan adds bank feeds. Clear Books and Pandle also have free plans, with bank feeds listed on their paid plans.
Sources
- Choose the right software for Making Tax Digital for Income Tax (GOV.UK, checked 19 October 2026)
- Find software for Making Tax Digital for Income Tax (GOV.UK software finder, product pages read 18 October 2026, checked 19 October 2026)
- Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340) (GOV.UK, checked 19 October 2026)
- What you must do as a CIS contractor: Make deductions and pay subcontractors (GOV.UK, checked 19 October 2026)
- Check when you must use the VAT domestic reverse charge for building and construction services (GOV.UK, checked 19 October 2026)
- VAT domestic reverse charge technical guide (GOV.UK, checked 19 October 2026)
- Register for VAT: When to register (GOV.UK, checked 19 October 2026)
- Find out if and when you need to use Making Tax Digital for Income Tax (GOV.UK, checked 19 October 2026)
- Use Making Tax Digital for Income Tax: Submit your tax return (GOV.UK, checked 19 October 2026)
- Xero UK: Pricing plans (checked 19 October 2026)
- QuickBooks UK: Pricing (checked 19 October 2026)
- QuickBooks UK: Accounting software for sole traders (checked 19 October 2026)
- FreeAgent: Pricing (checked 19 October 2026)
- Clear Books: Pricing (checked 19 October 2026)
- Zoho Books UK: Pricing (checked 19 October 2026)
- Pandle: Pricing (checked 19 October 2026)
This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.
What happens next
- Use the free Making Tax Digital checker to see your own start date and deadlines.
- See what Righto Tax for Trades does for you, and join the waitlist.
- Questions about this page? Email hello@rightotax.co.uk.