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7 Min. Read

Best UK Tax Software For Entrepreneurs

Best UK Tax Software For Entrepreneurs

Doing your taxes can be so much easier with the right software on board. Check out our top list of UK tax software to simplify your accounts.

Managing your taxes for the HMRC can be complex without the best tools involved. Yes, there are some mathematical whizzes that can do things with a spreadsheet and a prayer. But that’s not true for the majority of us. It can help you immeasurably to use an online accounting system to streamline the way you do your tax returns.

This in-depth guide will walk you through the pros and cons of various tax software relevant to UK business owners. There’s something for everyone so we hope you’ll find the best fit for you!

Here’s What We’ll Cover:

Best Overall - FreshBooks

Best for eCommerce - Xero

Best for Comprehensive Accounting - QuickBooks

Best for Solely Tax-Filing - GoSimple Tax

Key Takeaways

Best Overall - FreshBooks

Beyond being completely Making Tax Digital compliant and recognised by HMRC, we are known for simplifying the complex. Solopreneurs, small businesses and medium businesses can all benefit from our clean interface.

Our online tax services are incredibly easy to use. You set the parameters for your business and our intuitive tax calculators will do the rest. Our system will identify your taxable income. Using the automatic expense system diligently will also help us help you. We can calculate any standard tax deductions you might be owed when it comes to a federal filing.

Beyond the tax capabilities, we also have tons of customer management features and accounting features. It's an all-in-one solution. You can send unlimited invoices, unlimited estimates and track unlimited expenses. Our client collaboration tools come as standard for all packages. We also have integration partnerships with tons of useful apps such as the Google Suite, Shopify and Squarespace.

Our subscriptions work to your business income, structure and needs. The Lite package is perfect for freelancers and solopreneurs doing simple tax returns. The Plus package is perfect for growing small businesses. The Premium package is ideal for small businesses with increasing staff members. We also have a custom package that allows you to get in touch with us for a personalised deal. We’ll take into account your specific tax needs, budget and business size to craft a package that works for your accounting.

There are plenty of accounting and business management features to discover with our software. But don’t take our word for it! The best thing is to try it for free for yourself.

Pros:

  • Easy to use
  • Making Tax Digital compliant
  • Fully comprehensive accounting made simple
  • Works for many business sizes and structures

Cons:

  • No payroll capabilities as standard

Best for eCommerce - Xero

Xero is a cloud accounting system that works amazingly for online stores and eCommerce businesses. This is because it has a range of features that lend themselves well to eCommerce business structures. For example, it has inventory management and VAT tax filing.

Xero is also Making Tax Digital compliant. It has a very user-friendly interface with an excellent user experience. It works on desktop and mobile apps relatively seamlessly for tax filing wherever you are. There are no complicated returns here or extortionate filing fees.

The one drawback of Xero is the fee structure. The basic package is quite limited. The most basic package allows you to send up to 20 invoices and track 5 bills to pay. You’ll likely want to upgrade to the Standard or Premium plans to get the full functionality. You also have optional add-ons such as payroll and expense claiming capabilities that raise the cost.

Pros:

  • Making Tax Digital compliant
  • Inventory management as standard
  • Easy interface to use
  • Good for small to medium businesses

Cons:

  • Can get pricey with all the add-ons

Best for Comprehensive Accounting - QuickBooks

QuickBooks is great for those who already have a handle on tax filing and accounting. It’s a dense system with powerful features for the advanced business owner or accountant.

Quickbooks has an automatic tax calculating system that is very accurate and useful. It can take some time to get used to the system. There is a learning curve. However, when you learn to use the multiple features on offer, Quickbooks is a good option for various professionals.

It can handle your self-assessment as a freelancer. It can equally handle your VAT return as an eCommerce vendor. It will calculate standard deductions and create a complex return for you. Whatever the size or function of your business, Quickbooks has a flexible enough interface to cover them. If you have a complicated tax situation, this is a popular product to consider. You just need to take the time to learn how to use it properly!

As for pricing, the Simple Start package starts from £12 per month. That will cover most solopreneurs and small business owners without teams. With teams, you’ll want the Essentials or Plus packages.

Pros:

  • Very in-depth accounting system
  • Payroll capabilities
  • Making Tax Digital compliant
  • Works with many business structures

Cons:

  • Can be a learning curve to use

Best for Solely Tax-Filing - GoSimple Tax

Lastly, let’s talk about the best system for solely tax filing. All of the options we’ve mentioned so far have many accounting capabilities. They can do payroll, expense reporting, business financial health checks and more. GoSimple Tax is for you if you simply want assistance filing taxes and nothing else.

Because GoSimple Tax focuses solely on self-assessments and various income tax returns, it’s pretty much the expert at it. They have various tax models you can file with them directly to HMRC on an annual basis. Therefore all of their plans are a fixed small annual fee to get the help you need at the time of filing.

As for the tax filing options, you can file:

  • Property income tax
  • Foreign income tax
  • Self-employment/freelance income tax (simple return)
  • Partnership tax
  • Capital gains tax

And much more.

The system is very intuitive and elegant. Most calculations are done at the click of a button. All of the hard stuff is done for you instantly making the filing process less of a hassle. They have great one-to-one support come tax time too.

It’s relatively good value for money given that you only pay once a year. The aim of the software is to be like a tax accountant. A tax accountant could cost you hundreds around tax season. But this software is under £100.

Best of all, it syncs with FreshBooks! If you do your main accounting with us but want GoSimple Tax to handle the filing side of things, you can easily have both.

Pros:

  • Making Tax Digital compliant
  • Integrates with FreshBooks
  • Makes various tax forms incredibly simple
  • Very seamless tax filing experience

Cons:

  • Has no other accounting capabilities

Key Takeaways

When searching for the right tax software for you, you need to consider:

  1. The size of your business
  2. Integration options
  3. How user-friendly you need the interface to be

There are various financial products on the market that will enable electronic filing.

We’re proud to say that FreshBooks is known for keeping tax filing as simple and jargon-free as possible. Learn more about our comprehensive but simple accounting system here.

For more UK tax guides, head to our resource hub.


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