Software comparison

QuickBooks vs Sage for Making Tax Digital

A head-to-head comparison for UK sole traders and landlords. Sage offers a permanent free tier alongside affordable paid tiers, while QuickBooks provides automated bank feeds, receipt capture and mobile mileage tracking. Here is how their standard prices, monthly limits, HMRC recognition and features compare.

Checked on 15th October 2026.

At a glance: QuickBooks versus Sage

Intuit QuickBooks and Sage are established accounting software providers in the United Kingdom. Both providers have developed software that is recognised by HM Revenue and Customs (HMRC) for Making Tax Digital (MTD) for Income Tax and Making Tax Digital for VAT. Both allow self-employed workers and landlords to maintain compliant digital records, file quarterly updates, and submit final declarations.

The fundamental distinction between them is cost structure. Sage provides a permanent free plan, Sage Sole Trader Free, which costs 0 pounds a year for users with simple affairs and modest transaction volumes. QuickBooks does not offer a permanent free tier; every QuickBooks subscriber must pay a monthly fee. If you need uncapped transactions, receipt scanning, and automated mileage tracking, QuickBooks provides a comprehensive mobile toolkit, while Sage offers an economical paid step at 7 pounds a month excluding VAT.

Feature or requirement	QuickBooks (Sole Trader Plus / Simple Start)	Sage (Sole Trader Free, Sole Trader Paid, Start)
HMRC recognised for MTD for Income Tax	Yes (Ready now)	Yes (Ready now)
HMRC recognised for MTD for VAT	Yes (From Simple Start plan)	Yes (From Accounting Start plan)
Permanent free tier	None	Sage Sole Trader Free (£0 a year)
Lowest-cost paid plan (standard price)	£10 a month + VAT (£12 incl. VAT; £144 a year) [Sole Trader Plus]	£7 a month + VAT (£8.40 incl. VAT; £100.80 a year) [Sole Trader Paid]
Lowest VAT-ready plan (standard price)	£16 a month + VAT (£19.20 incl. VAT; £230.40 a year) [Simple Start]	£20 a month + VAT (£24 incl. VAT; £240 a year) [Accounting Start]
Connected bank accounts	Automated bank feeds included (multiple accounts)	1 bank account on Free (help article mentions up to 10; product page states 1); multiple on Paid
Monthly transaction auto-categorisation	Automated without monthly transaction caps	25 auto-categorised transactions a month on Free; unlimited on Paid
Monthly sales invoicing allowance	Invoicing included on Sole Trader Plus; unlimited on Simple Start	5 sales invoices a month on Free; unlimited on Paid
Receipt capture	Mobile photo receipt snap and text extraction included	Manual entry on Free; mobile snap and scan included on Paid (£7/mo + VAT)
Mileage tracking	Built-in GPS mileage tracking on mobile application	Not included on entry plans
Construction Industry Scheme (CIS)	Subcontractor calculations included	Included on Sole Trader Paid (£7/mo + VAT) and Accounting Standard
Landlord property income support	Supported (one trade or property source per account)	Supported (explicitly on Free and Paid)

Sage Sole Trader Free: what is free and where the limits lie

Sage is unique among the traditional major accounting software brands in offering a permanent, zero-cost tier for Making Tax Digital. Sage Sole Trader Free is not a thirty-day trial: it is a free product intended for non-VAT registered sole traders and landlords with straightforward requirements.

With Sage Sole Trader Free, you receive:

Digital record-keeping of income and allowable expenses.
Quarterly update submissions directly to HMRC.
End-of-year Self Assessment summary (SA103S).
Bank connection to automatically import transactions.
A mobile application for managing basic tasks on the go.

However, Sage Sole Trader Free enforces strict monthly caps that will not suit busier sole traders:

25 auto-categorised transactions per month: The software automatically sorts up to 25 transactions into tax buckets each month. Any transactions beyond this limit must be reviewed and categorised manually.
5 sales invoices per month: You can only create and issue up to five invoices each month.
Manual receipt entry: The free tier does not include mobile photo receipt capture or automatic data extraction. You must enter receipt details manually.
Bank account discrepancy: Sage product pages state that the free plan connects to 1 bank account, whereas Sage help documentation states up to 10 bank accounts. Sage has not reconciled this discrepancy (checked on 14th October 2026 and 15th October 2026).
No VAT return filing: The free tier cannot file VAT returns to HMRC.

QuickBooks does not provide a comparable free plan. Every QuickBooks user must pay an ongoing subscription once promotional discounts or trial periods conclude.

Standard monthly prices compared

Both companies advertise introductory discounts on their websites, such as 90 per cent off for the first six months. To understand your recurring commitment, you must evaluate the regular standard prices that apply once temporary discounts finish.

Sage pricing structure

Sage Sole Trader Free: 0 pounds a year (permanently free). Built for non-VAT sole traders and landlords with low transaction numbers.
Sage Sole Trader (Paid): 7 pounds a month excluding VAT (8.40 pounds a month including VAT, totaling 100.80 pounds a year including VAT). Removes limits on automated transaction categorisation and invoicing. Adds mobile snap-and-scan receipt capture, multiple bank account connections, CIS calculations, 10GB document storage, and human webchat support. It does not file VAT returns.
Sage Accounting Start: 20 pounds a month excluding VAT (24 pounds a month including VAT, totaling 240 pounds a year including VAT). Designed for VAT-registered businesses, adding VAT return calculation and submission to HMRC, plus payroll for one employee.
Sage Accounting Standard: 43 pounds a month excluding VAT (51.60 pounds a month including VAT). Supports up to three users, cash flow forecasting, and 30 receipt captures.

QuickBooks pricing structure

QuickBooks Sole Trader Plus: 10 pounds a month excluding VAT (12 pounds a month including VAT, totaling 144 pounds a year including VAT). Built for non-VAT registered sole traders and landlords. Includes MTD for Income Tax filing, automated bank feeds, receipt capture, Self Assessment estimates, and GPS mileage tracking. It does not file VAT returns to HMRC.
QuickBooks Simple Start: 16 pounds a month excluding VAT (19.20 pounds a month including VAT, totaling 230.40 pounds a year including VAT). Designed for VAT-registered sole traders and micro-businesses, adding direct MTD for VAT submissions to HMRC.
QuickBooks Essentials: 33 pounds a month excluding VAT (39.60 pounds a month including VAT). Supports three users, supplier bill tracking, multi-currency accounting, and CIS deductions.

Making Tax Digital for Income Tax compliance

Making Tax Digital for Income Tax requires sole traders and landlords with gross qualifying income exceeding statutory thresholds to keep digital accounting records and submit quarterly summaries to HMRC using compatible software.

HMRC defines qualifying income as gross turnover before deducting allowable business expenses or tax allowances, not net taxable profit. The confirmed rollout dates are:

From 6th April 2026: Qualifying income over 50,000 pounds (based on the 2024 to 2025 Self Assessment tax return).
From 6th April 2027: Qualifying income over 30,000 pounds (based on the 2025 to 2026 Self Assessment tax return). HMRC estimates that approximately 1,077,000 additional sole traders and landlords will join at this point.
From 6th April 2028: Qualifying income over 20,000 pounds (based on the 2026 to 2027 Self Assessment tax return).

Both QuickBooks and Sage are recognised on HMRC's official list of compatible software. Both platforms connect directly to HMRC APIs, allowing you to authorise software access, submit quarterly updates, and complete the final declaration by 31st January.

Key feature differences

Bank feed automation

QuickBooks connects to UK banks and categorises transactions without imposing artificial monthly limits. Sage Sole Trader Free connects to your bank but caps automatic categorisation at 25 transactions each month. If you exceed 25 transactions, Sage requires you to sort the remainder manually or upgrade to Sage Sole Trader Paid (7 pounds a month excluding VAT).

Sales invoicing

Sage Sole Trader Free restricts sales invoicing to 5 invoices per month. QuickBooks Sole Trader Plus includes invoicing without this monthly ceiling. If you issue weekly invoices or invoice multiple clients, Sage Free will quickly prove restrictive unless you upgrade to the 7 pounds a month paid tier.

Receipt capture and extraction

QuickBooks Sole Trader Plus includes mobile receipt capture out of the box at 10 pounds a month excluding VAT. You take a photo of a receipt, and the application extracts the supplier name, date and amount, matching it against your bank feed. Sage Sole Trader Free does not include receipt photo scanning; receipts must be keyed in manually. To unlock snap-and-scan receipt capture in Sage, you must pay 7 pounds a month excluding VAT for Sage Sole Trader Paid.

Mileage tracking

QuickBooks Sole Trader Plus includes automatic GPS mileage tracking in its mobile app, allowing you to log business travel and swipe to categorise journeys. Sage does not provide automated GPS mileage tracking on its entry plans, requiring you to record business travel manually.

Value Added Tax (VAT) submissions

Neither QuickBooks Sole Trader Plus nor Sage Sole Trader (Free or Paid) supports submitting VAT returns to HMRC. If your business is VAT registered, you must choose QuickBooks Simple Start at 16 pounds a month excluding VAT or Sage Accounting Start at 20 pounds a month excluding VAT. QuickBooks Simple Start is 4 pounds a month cheaper (48 pounds a year excluding VAT) than Sage Accounting Start.

Plain verdicts by situation

Our assessment: If you have very few monthly transactions and issue fewer than 5 invoices a month, Sage Sole Trader Free is unbeatable because it costs 0 pounds a year. If you want receipt scanning and unlimited invoicing without paying for VAT, Sage Sole Trader Paid is cheaper at 7 pounds a month excluding VAT than QuickBooks Sole Trader Plus at 10 pounds a month. For VAT-registered businesses, QuickBooks Simple Start provides better value at 16 pounds a month excluding VAT.

Micro sole trader or landlord with very low monthly activity: Choose Sage Sole Trader Free. If you have under 25 monthly transactions and issue fewer than 5 invoices, Sage Sole Trader Free meets all MTD for Income Tax requirements for 0 pounds a year.
Non-VAT sole trader needing receipt scanning and unlimited invoicing: Choose Sage Sole Trader Paid. At 7 pounds a month excluding VAT (100.80 pounds a year including VAT), it provides receipt capture and unlimited invoices for 43.20 pounds a year less than QuickBooks Sole Trader Plus (144 pounds a year including VAT).
Sole trader with significant business driving: Choose QuickBooks Sole Trader Plus. Built-in GPS mileage tracking saves substantial administrative time, making the 3 pounds a month price difference over Sage Paid worthwhile.
VAT-registered sole trader: Choose QuickBooks Simple Start. At 16 pounds a month excluding VAT (230.40 pounds a year including VAT), it is 9.60 pounds a year cheaper than Sage Accounting Start (240 pounds a year including VAT) and offers stronger small-business bookkeeping tools.
Landlord with residential property: Sage Sole Trader Free handles residential property accounting at 0 pounds a year if rental transactions fit comfortably within the monthly 25-transaction limit.

Questions people ask

Is Sage Sole Trader really free?

Yes. Sage Sole Trader Free is a permanent free plan, not a temporary trial. It includes digital record-keeping and MTD for Income Tax quarterly updates and final declarations. However, it imposes strict monthly limits: up to 25 automatically categorised bank transactions, up to 5 sales invoices per month, manual receipt entry, and no VAT return filing.

Does QuickBooks have a free plan?

No. QuickBooks does not offer a permanent free tier or a free bank account partnership in the United Kingdom. QuickBooks offers promotional discounts and thirty-day trial periods, but users must pay an ongoing monthly subscription fee once promotional terms end.

Are QuickBooks and Sage recognised by HMRC for Making Tax Digital for Income Tax?

Yes. Both QuickBooks and Sage are recognised by HM Revenue and Customs for Making Tax Digital for Income Tax. Both systems support keeping digital records, sending quarterly updates, and submitting the final declaration.

Which software is cheaper if I am VAT registered?

QuickBooks Simple Start is cheaper at 16 pounds a month excluding VAT (19.20 pounds a month including VAT, totaling 230.40 pounds a year including VAT), compared to Sage Accounting Start at 20 pounds a month excluding VAT (24 pounds a month including VAT, totaling 240 pounds a year including VAT).

What are the limits on Sage Sole Trader Free?

The Sage Sole Trader Free plan limits users to 25 automatically categorised bank transactions per month, 5 sales invoices per month, and manual receipt entry. Sage product materials state it connects 1 bank account, while Sage help documentation states up to 10 bank accounts. It does not support VAT return filing.

Can I record rental property income in QuickBooks and Sage?

Yes. Both platforms support recording residential property income and expenses for Making Tax Digital. Sage Sole Trader Free explicitly includes landlord income recording at zero software cost, provided transaction numbers stay within monthly caps.

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Sources

HM Revenue and Customs, Choose the right software for Making Tax Digital for Income Tax, checked 15th October 2026.
HM Revenue and Customs, Find software that is compatible with Making Tax Digital for Income Tax, checked 15th October 2026.
HM Revenue and Customs, Find out if and when you need to use Making Tax Digital for Income Tax, checked 15th October 2026.
HM Revenue and Customs, Sole traders and landlords earning more than 30,000 pounds urged to act now, checked 15th October 2026.
Intuit QuickBooks UK, QuickBooks UK pricing and costs, checked 15th October 2026.
Intuit QuickBooks UK, QuickBooks Sole Trader pricing, checked 15th October 2026.
Sage UK, Sage for Sole Traders, checked 15th October 2026.
Sage UK, Sage Making Tax Digital overview, checked 15th October 2026.