Zoho Books

Free MTD-ready accounting for sole traders, or from £10/month (billed annually) for bank feeds and more.

At a glance

Zoho Books is cloud accounting software with a genuinely capable free plan built specifically for sole traders and landlords, including free MTD for Income Tax filing.

Free

£10/m

Standard Plan (billed annually)

Sole Trader Plan

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What is Zoho Books?

Zoho Books is cloud accounting software from Zoho, a large and established software company with products spanning CRM, email, and business tools well beyond accounting. Zoho Books itself has been around since 2011 and is used by businesses of all sizes, but it also has a dedicated free plan built specifically for UK sole traders and landlords.

Unlike some competitors, Zoho’s free plan isn’t a stripped-back trial - it’s built around Making Tax Digital for Income Tax specifically, including preparing and filing your SA100 self assessment return directly with HMRC, at no cost.

Key features

Prepare and file your SA100 self assessment return with HMRC
Free Making Tax Digital for Income Tax filing - send quarterly updates, report other income, and submit your final return
Create invoices, quotes, expenses and journals
Automatic receipt scanning (50 scans a month on the free plan)
Track mileage
Accept online payments from clients
Manage credits and refunds
Reconcile bank transactions
Track rental income (useful if you’re a landlord as well as a sole trader)

Pricing

Zoho Books has a genuinely free plan for sole traders and landlords, plus four paid tiers if you need more as your business grows. Prices below are shown monthly, with the cheaper annual-billing rate in brackets.

Free plan

The free plan is built specifically for sole traders, landlords, and micro businesses. It includes:

SA100 self assessment preparation and filing with HMRC
Full MTD for Income Tax support (quarterly updates, adjustments, final return)
Up to 1,000 invoices and 1,000 expenses per year
Up to 3 active projects
Receipt autoscans (50 a month)
Mileage tracking
Online payment acceptance
1 user plus 1 accountant
Email support

There’s no turnover cap on the free plan itself - the limits are based on usage (invoice and expense counts), not how much you earn.

Standard plan - £12/month, or £10/month billed annually

The Standard plan removes some of the free plan’s limits and adds bank feed connections:

Everything in Free, plus automatic bank feed connections
Up to 5,000 invoices and 5,000 expenses a year
Recurring expenses
Custom fields and reports
API access
3 users
Email, voice and chat support

Professional plan - £24/month, or £20/month billed annually

Aimed at businesses managing vendors, inventory, or working across currencies - likely more than most sole traders need, but worth knowing about if you’re growing:

Everything in Standard, plus vendor bill and payment management
CIS returns submitted directly to HMRC
Multi-currency transactions
Inventory tracking
5 users

This is a current promotional annual-billing rate - always check Zoho’s pricing page for the latest terms before signing up.

If you need more

Zoho Books also offers Premium, Elite and Ultimate tiers for larger or more complex businesses, but these go well beyond what a typical sole trader needs - the Free and Standard plans cover almost all sole trader use cases.

Is Zoho Books MTD compatible?

Yes, and this is genuinely one of Zoho’s strongest points for sole traders - the free plan includes full MTD for Income Tax support, including quarterly HMRC updates and your final SA100 submission, at no cost. Paid plans also support MTD for VAT if you’re VAT registered.

Pros and cons

Pros:

Free plan includes full MTD for Income Tax filing, not just basic bookkeeping
No turnover cap on the free plan - only usage-based limits
Built-in SA100 self assessment filing with HMRC
Backed by an established, well-resourced software company
Scales well if your business grows - clear upgrade path through five tiers
Also covers landlords, useful if you have rental income alongside self employment

Cons:

Interface can feel more complex than simpler, sole-trader-only tools, since Zoho Books serves businesses of all sizes
Bank feed connections aren’t included on the free plan - you’ll need Standard for that
1,000 invoices/expenses a year sounds generous but can add up quickly if you invoice frequently
Wider Zoho ecosystem (CRM, email, etc.) isn’t relevant to most sole traders and can feel like extra clutter

Who is Zoho Books best for?

Zoho Books suits a sole trader who wants free, proper MTD-compliant accounting without paying anything, especially if you also have rental income to track. The free plan is one of the more complete free offerings available, genuinely covering self assessment filing rather than just basic record keeping.

If you want automatic bank feeds without upgrading, or you find Zoho’s interface more than you need, a simpler dedicated sole trader tool like Sage Sole Trader may suit you better. Compare it against other options in our Accounting and Bookkeeping directory.

Get Zoho Books

Frequently asked questions

Is Zoho Books really free, or is it a trial?

The free plan is permanently free for sole traders, landlords and micro businesses, with usage limits (1,000 invoices and 1,000 expenses a year) rather than a time limit.

Does Zoho Books support Making Tax Digital?

Yes. The free plan includes full MTD for Income Tax support, including quarterly updates and your final SA100 return. MTD for VAT is available on paid plans.

Can I use Zoho Books if I’m a landlord as well as a sole trader?

Yes. Zoho Books includes property and rental income tracking as part of its sole trader and landlord offering.

What happens if I go over the free plan’s invoice or expense limit?

You’d need to upgrade to a paid plan to continue creating new invoices or expenses once you hit the annual limit. Contact Zoho directly if you’re close to the limit and unsure which plan fits.

Is Zoho Books the same as Zoho Invoice?

No. Zoho Invoice is a separate, simpler free tool focused just on invoicing and quotes. Zoho Books is the fuller accounting package, including bookkeeping, expenses, and self assessment filing.

Compare accounting software for sole traders

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

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