Sage Sole Trader vs Zoho Books: best MTD software in 2026

Sage Sole Trader

Free

Aimed at: Non-VAT registered sole traders who want free, MTD-ready accounting from a trusted UK brand

4.0/5

Try Sage Sole Trader Read the full review →

Zoho Books

Free under £50k, else £8/mo

Aimed at: Sole traders who want a free MTD-recognised option with full accounting features

4.1/5

Try Zoho Books Read the full review →

Last verified on 30 September 2026. Sources: Sage Sole Trader and Zoho Books provider websites, and the HMRC list of MTD software . Prices may include VAT or be promotional and can change at any time.

Sage Sole Trader and Zoho Books are both HMRC-recognised for MTD Income Tax. Sage Sole Trader is non-vat sole traders who want a simple, low-cost option; Zoho Books is businesses already in the zoho ecosystem.

Quick comparison

	Sage Sole Trader	Zoho Books
Pricing	£7/month, free with NatWest	Free under £50k turnover, from £8/month
Best for	Non-VAT sole traders who want a simple, low-cost option	Businesses already in the Zoho ecosystem
Free tier	Yes	Yes
Bank feeds	Limited	Yes
Multi-currency	No	Yes
Invoicing	Yes	Yes
Mobile app	Yes	Yes

Sage Sole Trader overview

Sage Sole Trader is non-vat sole traders who want a simple, low-cost option. Key strengths: Free with NatWest, Lower price than FreeAgent, Simple interface. Limitations: No multi-currency, Limited features.

Zoho Books overview

Zoho Books is businesses already in the zoho ecosystem. Key strengths: Free under £50k, Multi-currency, Unlimited invoicing. Limitations: Smaller ecosystem, Less UK-focused.

Which should you choose?

Pick Sage Sole Trader if…

Free with NatWest
Lower price than FreeAgent
Simple interface

Pick Zoho Books if…

Free under £50k
Multi-currency
Unlimited invoicing

Verdict

Sage Sole Trader vs Zoho Books: Both are solid MTD-recognised options. Sage Sole Trader excels for non-vat sole traders who want a simple, low-cost option, while Zoho Books is better for businesses already in the zoho ecosystem. Choose based on your specific needs and budget.

Still not sure which one fits?

Comparing prices and features only gets you so far. Answer five quick questions about how your business actually works and the MTD Software Finder will shortlist the tools that genuinely suit your situation — and be honest about what each one can't do.

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Sage Sole Trader vs Zoho Books: how we researched this

We checked both Sage Sole Trader and Zoho Books against the official HMRC list of MTD-compatible software on 30 September 2026, and verified pricing from each provider's own website on the same date. We judge what each tool genuinely can and can't do for a real UK sole trader, freelancer or landlord — including limitations a free trial won't volunteer — and we never let commission influence the order we present things. Some links on this page are affiliate links; we may earn a small commission if you buy through them, at no extra cost to you.

Also worth considering

If neither Sage Sole Trader nor Zoho Books feels right, these HMRC-recognised options are worth a look:

FreeAgent UK sole traders & micro limited companies who want a simple all-in-one package Read the review →
Xero Sole traders & landlords who want a mature ecosystem and lots of integrations Read the review →
Sage Accounting Established UK businesses & landlords who want a recognisable UK brand Read the review →

Bottom line: who should pick what

Your situation	Our pick	Why
Best for VAT-registered businesses	Sage Sole Trader	Non-VAT registered sole traders who want free, MTD-ready accounting from a trusted UK brand

Not sure which camp you fall into? Run the 5-question Software Finder and we'll shortlist the tools that fit you.

Sage Sole Trader vs Zoho Books: common questions

Which is better, Sage Sole Trader or Zoho Books?

The honest answer is "it depends on your situation". Sage Sole Trader is aimed at traders who fit "Non-VAT registered sole traders who want free, MTD-ready accounting from a trusted UK brand", while Zoho Books is aimed at people who fit "Sole traders who want a free MTD-recognised option with full accounting features". If that doesn't settle it for you, run the 5-question MTD Software Finder and it will shortlist the tools that actually fit your circumstances.

Is Sage Sole Trader or Zoho Books cheaper?

Sage Sole Trader starts from a lower headline price (Free) than Zoho Books (Free under £50k, else £8/mo). Check the plans on each provider's site for the full picture — the cheapest headline tier is often not the one you'll end up on.

Can I move from Sage Sole Trader to Zoho Books later?

Yes. MTD just requires you to keep digital records and send quarterly updates to HMRC — it does not lock you into any one tool. Most MTD software lets you export your accounting data, so you can switch providers and simply start your next quarterly update in the new software. Keep your old records for at least six years.