Voice and visuals made with automated software, including AI.
Doing it yourself costs from nothing to about £19 a month plus VAT for software. Paying a firm costs more: in October 2026, packages that included bookkeeping were listed at about £40 a month or more.
Bookkeeping means recording every sale and every cost so your tax return adds up. From your Making Tax Digital for Income Tax (MTD) start date, those records must be kept in software. If your turnover before costs was over £30,000 on your 2025-26 tax return, that date is 6 April 2027. What you pay depends on who does the work: you, your software, or a firm.
Want your books sorted?
We sort your books and prepare your quarterly figures. You send them to HMRC yourself with free Making Tax Digital software.
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.
Are you ready for Making Tax Digital? Check your start date and what to sort first. It’s free and takes a minute.
Three ways to do your books
| Route | What it involves | Price listed in October 2026 |
|---|---|---|
| Free software | You enter or import transactions; no bank feed | £0 on the free plans of Pandle and Clear Books |
| Spreadsheet plus bridging software | You keep a spreadsheet; the software sends it to HMRC | 123 Sheets £19.75 a year plus VAT (first-year discount); untied £129.99 a year including VAT |
| Software with a bank feed | Transactions come in from your bank for you to sort | Pandle Pro and Clear Books £5 a month plus VAT; QuickBooks from £10 plus VAT; Xero Ignite £18 plus VAT; FreeAgent £19 plus VAT |
| A firm does it for you | They keep the books and send your updates and tax return | Mazuma Basic £38 a month plus VAT; Taxfix MTD Full Support £39.99 a month including VAT |
Each software product listed was on the GOV.UK software finder when checked on 15 October 2026. Mazuma and Taxfix are firms rather than software, so ask which MTD software they use. Prices come from each company's own site. Several offer large discounts for the first months, and FreeAgent is free with some business bank accounts.
Working out the yearly cost
Monthly prices look small, so compare them over a full year, with VAT added where it is not included. VAT here is the standard rate of 20%.
| Option | Listed price | A year before VAT | A year including VAT |
|---|---|---|---|
| Pandle Pro | £5 a month plus VAT | £60.00 | £72.00 |
| QuickBooks | From £10 a month plus VAT | £120.00 | £144.00 |
| FreeAgent | £19 a month plus VAT | £228.00 | £273.60 |
| Taxfix MTD Full Support | £39.99 a month including VAT | Not stated | £479.88 |
| Mazuma Basic | £38 a month plus VAT | £456.00 | £547.20 |
ByteStart's cost guide, published on 25 September 2026, puts a basic monthly package from an accountant at £25 to £50 a month. It is a guide from a publisher with partner firms, not an official figure.
What this means for you
If your work is simple, with one bank account and a steady run of jobs, free or low-cost software may be all you need. If you are on CIS, have materials to track, or are VAT-registered, paid software or a firm can save you time. Your own time has a value too.
Whichever route you choose, you remain responsible for the figures that go to HMRC. Check them before each update.
Steps to keep bookkeeping costs down
- Use the free MTD check to find out when MTD starts for you.
- If your turnover is under £90,000, use the simpler categories: each item only needs to be marked as income or expense.
- Keep one bank account just for the business, so a bank feed shows only business transactions.
- Photograph receipts as you go, and file each CIS payment and deduction statement when it arrives.
- Compare the full yearly cost, including VAT and the price after any first-year offer.
- If you pay someone, get the price and what is included in writing, and never give them your HMRC sign-in details.
Doing it with help
Some firms only keep the books, while others also send your quarterly updates and tax return. Ask which you are getting before you compare prices. The trades section has guides on software, CIS and choosing an accountant.
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
Can I do my own bookkeeping?
Yes. Most sole traders can. From your Making Tax Digital start date the records must be digital, but some software on the GOV.UK finder has a free version.
What is the cheapest way to do bookkeeping for MTD?
A free product from the GOV.UK finder, or a spreadsheet with low-cost bridging software. Free plans usually leave out bank feeds, so you enter or import transactions yourself.
How much does a bookkeeper charge an hour?
There is no official or independent figure for bookkeeper hourly rates, so none is given here. Ask for a written quote that says what is included.
What records do I need to keep?
Under MTD, each record needs the amount, the date and a category. If your turnover is under £90,000, the category can simply be income or expense. Keep records for at least 5 years after the 31 January deadline.
Are bookkeeping costs tax-deductible?
The full self-employment pages of the tax return (SA103F) have an expense box for accountancy, legal and other professional fees, so fees for keeping your business books can be claimed there.
Sources
- Use Making Tax Digital for Income Tax: Create digital records (GOV.UK)
- Find software that works with Making Tax Digital for Income Tax (GOV.UK software finder)
- Find out if and when you need to use Making Tax Digital for Income Tax (GOV.UK)
- What you must do as a CIS subcontractor: Get paid (GOV.UK)
- The HMRC standard for agents (GOV.UK)
- How much should you pay for an accountant if you're self-employed? (ByteStart, 25 September 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.