FreshBooks

Invoicing-first accounting software from £16/month, built for freelancers who bill clients by time or project.

At a glance

FreshBooks is invoicing-first accounting software, strong for client billing and time tracking, but it doesn’t currently support MTD for Income Tax.

£30/m

Lite Plan

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£16/m

Plus Plan

What is FreshBooks?

FreshBooks is cloud accounting software that started life in Toronto in 2003 as an invoicing tool for freelancers, later adding full double-entry accounting. That invoicing-first history still shows - FreshBooks is particularly strong for anyone who bills clients by time, project or retainer, with UK pricing available in pounds at freshbooks.com/en-gb.

It’s worth knowing upfront that FreshBooks is not currently HMRC-recognised for MTD for Income Tax, only MTD for VAT - an important gap if you’re a sole trader approaching the MTD for Income Tax threshold.

Key features

Professional, customisable invoices with online payment links
Time tracking built in, with the ability to convert tracked time straight into an invoice
Project profitability tracking
Expense tracking with receipt capture
Automated payment reminders for late-paying clients
Client portal for a smoother invoicing experience
Double-entry accounting and financial reporting

Pricing

FreshBooks has three core UK plans plus a custom option, all priced in pounds. Figures below are the standard monthly rates - FreshBooks routinely runs a 50% discount for the first 3-4 months.

Lite - £16/month

Up to 5 billable clients
Unlimited invoices and estimates
Expense tracking
Time tracking
Online payments

Plus - £30/month

Everything in Lite, plus
Up to 50 billable clients
Recurring invoices and automatic late fees
Double-entry reports
Ability to invite an accountant to collaborate

Premium - £42/month

Everything in Plus, plus
Unlimited billable clients
Bill payment tracking
Custom email templates

Select - custom pricing

For higher-volume billing needs, contact FreshBooks directly for a tailored quote. This is a current promotional rate - always check FreshBooks’ UK pricing page for the latest terms before signing up.

Is FreshBooks MTD compatible?

Partially. FreshBooks is HMRC-recognised for MTD for VAT, with direct submission to HMRC. It is not currently listed as recognised software for MTD for Income Tax Self Assessment, which matters if your self-employment income is approaching the mandation thresholds. If MTD for Income Tax is a priority, you’d need to pair FreshBooks with separate bridging software, or choose a tool that covers it natively.

Pros and cons

Pros:

Strong, polished invoicing and client billing experience
Time tracking and project profitability built in, useful if you bill hourly
Automated payment reminders reduce chasing late payers
UK pricing in pounds with local VAT MTD support

Cons:

No MTD for Income Tax support currently - a real limitation for sole traders approaching the threshold
Client caps on Lite (5) and Plus (50) plans can be restrictive if you have many small clients
No CIS support, so not suitable for construction subcontractors
Pricier than some sole-trader-focused alternatives once you’re past the introductory discount

Who is FreshBooks best for?

FreshBooks suits a freelancer or consultant who bills clients by time or project and wants strong invoicing, time tracking and a polished client experience above all else. If MTD for Income Tax compliance is your main concern, FreshBooks currently falls short - you’d need to plan for bridging software or choose a tool like Zoho Books or Sage Sole Trader that handles it natively.

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Frequently asked questions

Does FreshBooks support Making Tax Digital?

It supports MTD for VAT with direct HMRC submission. It does not currently support MTD for Income Tax Self Assessment.

Is there a free plan?

No. FreshBooks offers a 30-day free trial with full feature access, but there’s no permanent free tier.

How many clients can I bill on the Lite plan?

Up to 5 billable clients. If you work with more clients regularly, you’d need Plus (50 clients) or Premium (unlimited).

Can FreshBooks handle CIS for construction work?

No, FreshBooks doesn’t currently offer CIS (Construction Industry Scheme) support, so it isn’t suitable for construction subcontractors who need that.

Is FreshBooks UK-specific?

FreshBooks operates globally with a dedicated UK edition at freshbooks.com/en-gb, priced in pounds and supporting MTD for VAT, though some help content and phrasing retains North American origins.

Compare accounting software for sole traders

FreshBooks is one option among several worth comparing. Browse the full Accounting and Bookkeeping directory to compare it against Sage, Zoho Books, Xero and other options.

Prices and offers correct at time of publication. Always check the FreshBooks website for current pricing and promotional terms before signing up.