Sage Sole Trader Review: Is the Free Plan Enough?

Sage Sole Trader is free for non-VAT registered sole traders, or £7 a month plus VAT for the paid plan. What each includes, MTD support and who it suits.

6/26/20264 min read

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Sage Sole Trader review: is it right for you?

Sage Sole Trader is one of the most established names in UK accounting software, and their Sole Trader product is designed specifically for self-employed people who aren't VAT registered. But is Sage suitable for sole traders and the self-employed?

In short, yes - Sage Sole Trader is built from the ground up for this audience rather than adapted from a small business product. It handles income and expense tracking, invoicing, bank feeds, receipt capture and Self Assessment preparation, all in one place. It's available as both a web app and a mobile app, and comes in two plans - a free plan and a paid plan at £7 per month (excluding VAT).

Here's an honest look at what each plan includes, how it handles Making Tax Digital, and who it genuinely suits.

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

Note that the free plan caps you at 5 sales invoices and 25 auto-categorised transactions a month. That's plenty for a freelancer with one or two regular clients, but if you invoice more often than that, you'll hit the limit and need to log the extra invoices manually or move to the paid plan.

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.

If you’re using Sage Sole Trader for Making Tax Digital, Sage is rolling out the option to file your year-end tax return through the software, but it’s reaching users in stages, so check whether it’s switched on in your account. If you’re not in MTD yet, you file your Self Assessment return through HMRC’s own online service or an accountant, using the figures Sage has put together. Either way, 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 (£20/month + VAT) or another VAT-capable tool instead

• Have a high volume of transactions and want more automation

• Want to file your tax return from the same software today - Sage is still rolling this out

• 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 QuickBooks 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.

Frequently asked questions

Is Sage Sole Trader free?

Yes. The free plan is genuinely free, not a trial, and it’s for sole traders who aren’t VAT registered. It covers one bank feed, up to 5 sales invoices and 25 auto-categorised transactions a month, and MTD-ready record keeping.

Is receipt scanning included in the free plan?

No. On the free plan you enter expenses by hand. Snapping and scanning receipts with your phone is part of the paid plan, at £7 a month plus VAT.

Which Sage product is right for a sole trader?

If you’re not VAT registered, Sage Sole Trader, on either the free or paid plan. If you are VAT registered, you’ll need Sage Accounting instead, because Sage Sole Trader doesn’t handle VAT returns.

Does Sage Sole Trader work for Making Tax Digital?

Yes. Both plans are HMRC-recognised for Making Tax Digital for Income Tax. Not sure when MTD starts for you? Our MTD checker will tell you in a few quick questions.

What support do free users get?

Free users get Sage’s 24/7 product support. The paid plan adds human webchat support and access to Sage’s community forum.

How much does Sage Sole Trader cost?

The free plan costs nothing. The paid plan is £7 a month plus VAT, and Sage often runs introductory offers, so check Sage’s website for the current deal.

Pricing summary

• 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 £20/month + VAT

Prices checked October 2026. Always check the Sage website for current pricing and any promotional offers before signing up.