Zoho Books vs Sage: which is better?

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 →

Sage

From £14/month

Aimed at: Established UK businesses & landlords who want a recognisable UK brand

4.0/5

Try Sage Read the full review →

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

Zoho Books and Sage Accounting are both HMRC-recognised for MTD Income Tax. Zoho Books is businesses already in the zoho ecosystem; Sage Accounting is vat-registered businesses or those with complex accounting needs.

Quick comparison

	Zoho Books	Sage Accounting
Pricing	Free under £50k turnover, from £8/month	From £14/month (Start) to £36/month (Plus)
Best for	Businesses already in the Zoho ecosystem	VAT-registered businesses or those with complex accounting needs
Free tier	Yes	No
Bank feeds	Yes	Yes
Multi-currency	Yes	Yes
Invoicing	Yes	Yes
Mobile app	Yes	Yes

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.

Sage Accounting overview

Sage Accounting is vat-registered businesses or those with complex accounting needs. Key strengths: Multi-currency, Strong VAT features, Advanced reporting. Limitations: No free tier, More expensive.

Which should you choose?

Pick Zoho Books if…

Free under £50k
Multi-currency
Unlimited invoicing

Pick Sage Accounting if…

Multi-currency
Strong VAT features
Advanced reporting

Verdict

Zoho Books vs Sage Accounting: Both are solid MTD-recognised options. Zoho Books excels for businesses already in the zoho ecosystem, while Sage Accounting is better for vat-registered businesses or those with complex accounting needs. 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.

Find my software →

Zoho Books vs Sage: how we researched this

We checked both Zoho Books and Sage 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 Zoho Books nor Sage 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 →
QuickBooks Sole traders & small businesses already in the Intuit ecosystem Read the review →

Bottom line: who should pick what

Your situation	Our pick	Why
Best for sole traders	Zoho Books	Sole traders who want a free MTD-recognised option with full accounting features
Best for landlords	Sage	Established UK businesses & landlords who want a recognisable UK brand

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

Zoho Books vs Sage: common questions

Which is better, Zoho Books or Sage?

The honest answer is "it depends on your situation". Zoho Books is aimed at traders who fit "Sole traders who want a free MTD-recognised option with full accounting features", while Sage is aimed at people who fit "Established UK businesses & landlords who want a recognisable UK brand". 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 Zoho Books or Sage cheaper?

Zoho Books starts from a lower headline price (Free under £50k, else £8/mo) than Sage (From £14/month). 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 Zoho Books to Sage 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.