Sage Sole Trader review (2026): free MTD-ready accounting for sole traders

Prices and features last verified on 20 September 2026. Sources: Sage Sole Trader website, HMRC MTD software list.

Sage Sole Trader is free accounting software built specifically for non-VAT registered sole traders. It’s HMRC-recognised for MTD Income Tax, handles income and expense tracking, invoicing, and Self Assessment preparation — and you can upgrade to a paid plan at £7/month for receipt capture, unlimited invoices, and human support. It’s from Sage, the Newcastle-founded brand behind the UK’s most established accounting software.

What is Sage Sole Trader?

Sage Sole Trader is a new product — rebranded from Sage Individual — built for one audience: sole traders and freelancers who aren’t VAT registered. In plain terms, it is your accounting software: there’s no separate bookkeeping tool to sync, because it tracks your income and expenses, issues invoices, and submits your quarterly MTD updates itself.

It is not for VAT-registered businesses. If you charge VAT and need to submit MTD VAT returns, you need Sage Accounting Start (£18/month) instead — Sage Sole Trader simply isn’t built for that.

Pricing

Sage Sole Trader is genuinely free for basic use — no trial, no time limit, no billing card. The free plan covers one bank account, 5 sales invoices a month, 25 auto-categorised transactions, manual receipt entry, the mobile app, and MTD submissions. The paid plan is currently advertised at 90% off for the first 6 months (£0.70/month), reverting to £7/month + VAT.

Free vs paid

Here’s exactly what you get on each plan:

Key features

• MTD-ready — HMRC-recognised for Making Tax Digital for Income Tax
• Income and expense tracking
• Sales invoicing
• Bank feed
• Mobile app (iOS and Android)
• AI auto-categorisation
• Tax estimates
• SA103S Self Assessment form helper
• Accountant collaboration

Pros & cons

MTD compliance

HMRC-recognised for MTD ITSA (free and paid plans). Sage Sole Trader submits your quarterly updates and the End of Period Statement directly to HMRC on both free and paid plans, keeping you compliant with the MTD Income Tax deadline for sole traders.

One important limit: Sage Sole Trader does not submit the final Self Assessment tax return itself. That final return still goes through HMRC’s portal or an accountant. What the software handles is the ongoing quarterly MTD side — which is what keeps you compliant through the year.

Verdict

Sage Sole Trader is the best free option for non-VAT sole traders who want a trusted UK brand. The free plan covers MTD compliance, basic invoicing, and expense tracking with zero cost. If you’re VAT registered or need more features — payroll, deeper integrations, or VAT submission — look at Sage Accounting Start or another paid option.

Frequently asked questions