Sage Sole Trader review: is it right for you?

Sage Sole Trader is a free accounting app built specifically for non-VAT registered sole traders. Here's an honest look at what it does, how it handles Making Tax Digital, and who it suits.

6/26/20264 min read

Man on phone and laptop at kitchen table.

This post contains affiliate links. If you sign up via a link on this page, we may earn a commission at no extra cost to you.

Sage Sole Trader review: is it right for you?

Sage is one of the most established names in UK accounting software, and Sage Sole Trader is their dedicated product for self-employed people who aren't VAT registered. It's a fairly recent rebrand - it was previously called Sage Individual - and it's positioned as a simple, low-cost way to manage your records, invoices and Self Assessment in one place.

Here's an honest look at what it offers, what it costs, and whether it's the right fit for your situation.

What is Sage Sole Trader?

Sage Sole Trader is accounting software designed specifically for sole traders and freelancers who are not VAT registered. It's available as both a web app and a mobile app, and it's built around a relatively straightforward set of features: income and expense tracking, invoicing, bank feeds, receipt capture, and Self Assessment preparation.

It comes in two plans - a free plan and a paid plan at £7 per month (excluding VAT). Both are aimed at sole traders managing their own accounts, with or without an accountant.

What does the free plan include?

The free plan covers the basics most non-VAT registered sole traders need:

• Record income and expenses

• Connect one bank account via bank feed

• Create and send invoices

• View a self-employed tax summary

• Collaborate with an accountant if you have one

• HMRC-recognised and MTD-ready digital record keeping

For a sole trader who mainly wants to keep clean records and have the numbers ready for their Self Assessment return, the free plan is a reasonable starting point.

What does the paid plan add?

The paid plan costs £7 per month (excluding VAT) and unlocks a few additional features:

• Receipt capture - photograph receipts on your phone and upload them automatically

• Connect multiple bank accounts

• 10GB of document storage

• Human-operated webchat support, plus access to community and advice content

• Unlimited sales invoices

The most practical addition for most people is probably the receipt capture - it removes the need to manually log expenses from paper receipts and keeps everything in one place. If you're also managing income from more than one bank account, the ability to connect multiple feeds is useful.

Sage Sole Trader and Making Tax Digital

This is where Sage Sole Trader becomes particularly relevant for sole traders planning ahead. Making Tax Digital for Income Tax (MTD for IT) is being phased in from April 2026, starting with sole traders and landlords with gross income over £50,000. The threshold drops to £30,000 from April 2027, and £20,000 from April 2028.

Sage Sole Trader is HMRC-recognised and MTD-ready. That means it's built to handle the quarterly digital record keeping and submission requirements that MTD introduces - you won't need to switch software when the rules change for your income level.

If you're approaching the £50,000 threshold or want to get ahead of the changes, using MTD-compatible software now means you'll be set up correctly when it becomes mandatory. Our post on Making Tax Digital for Income Tax covers the deadlines and requirements in full.

How does it handle Self Assessment?

Sage Sole Trader pulls your income and expense data together and presents it in a format aligned with the SA103S Self Assessment form - the short version used by most sole traders with straightforward affairs. This makes it easier to complete your return yourself, or to share your records with an accountant if you use one.

It doesn't submit your Self Assessment return directly to HMRC on your behalf - you still need to file through HMRC's own portal or via an accountant. But it does the organising work that tends to take the most time.

Who is it best suited to?

Sage Sole Trader works well if you:

• Are a non-VAT registered sole trader or freelancer

• Want to keep digital records without paying for full accounting software

• Are preparing for Making Tax Digital and want an HMRC-recognised solution

• Do your own Self Assessment or work with an accountant who uses Sage

• Want a mobile app you can use on the go

It's less suitable if you:

• Are VAT registered - you'll need Sage Accounting Start (£18/month + VAT) or another VAT-capable tool instead

• Have a high volume of transactions and want more automation

• Want software that submits your Self Assessment return directly

• Might outgrow it soon - note that upgrading from Sage Sole Trader to Sage Accounting requires cancelling your subscription and starting a new one, rather than a simple in-account upgrade

How does it compare to alternatives?

The free plan competes directly with other free options like FreeAgent (free with NatWest or Mettle business accounts) and Zoho Books' free tier. Sage Sole Trader's main advantage over those is that it's purpose-built for sole traders and explicitly MTD-ready, which is increasingly important.

At £7/month, the paid plan is cheaper than most full accounting packages - FreshBooks and Xero both start higher - though those products offer more features. If you're a non-VAT registered sole trader with relatively straightforward finances, Sage Sole Trader is worth considering before committing to a more expensive platform.

You can compare other accounting and bookkeeping tools in our Accounting and Bookkeeping directory, and MTD-specific software options in our MTD Software directory.

Pricing summary (2025/26)

• Free plan - £0, non-VAT registered sole traders, one bank feed, invoicing, tax summary, MTD-ready

• Paid plan - £7/month + VAT, adds receipt capture, multiple bank feeds, 10GB storage, webchat support

• VAT-registered sole traders - Sage Accounting Start at £18/month + VAT

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