Starling Bank

Starling is a fully licensed UK bank offering a free sole trader account with FSCS protection up to £120,000, free invoicing, receipt capture and a built-in Making Tax Digital tool.

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At a glance

Starling is a fully licensed UK bank, not an e-money institution, so eligible deposits carry FSCS protection up to £120,000. The sole trader account is free, with no monthly fee or UK payment charges, and includes free invoicing, receipt capture and a built-in, HMRC-recognised MTD for Income Tax tool.

Free

£120,000

FSCS protection limit

Sole Trader Account

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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

Free invoicing, with automatic payment matching
Automatic transaction categorisation (Spending Insights)
Receipt capture
Free, HMRC-recognised MTD for Income Tax tool for quarterly updates
Free bank feeds with Xero, QuickBooks and FreeAgent
Spaces, for ring-fencing tax money

Pricing

Starling’s sole trader account is free. One paid add-on is available if you need it.

Sole trader account - £0/month

Free accounting tools, included from day one:

No monthly fee, no charges for UK payments, transfers, Direct Debits or standing orders
Free invoicing, receipt capture and MTD for Income Tax tool
Cash deposits charged at £3 or 0.7% (whichever is higher), capped at £5,000/day and £20,000/year

Accounting Plus - £7/month until April 2027, then £14/month

For VAT-registered businesses, upgrade any time:

Everything in the free account, plus
VAT return submission direct to HMRC
Automated VAT calculations
No contract, cancel anytime

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Who can open a Starling sole trader account?

You need to be a UK resident sole trader (not a partnership, LLP or limited company), aged 18 or over, trading in your own name rather than through a separate legal entity, and pass standard identity and credit checks. You can hold up to two sole trader accounts for two different businesses. A Unique Taxpayer Reference is requested if you’re already registered with HMRC, though you can still apply without one.

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 Starling Bank 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.

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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.