Zoho Books review (2026): the free MTD-ready option with full features
Prices and features last verified on 20 September 2026. Sources: Zoho Books website, HMRC MTD software list.
Zoho Books is HMRC-recognised for MTD Income Tax and is free for businesses with turnover under £50k, thereafter from £8/month. Best for sole traders who want full accounting features at no cost. Rated 4.1/5 for comprehensive features and strong automation rules.Zoho Books is the accounting arm of Zoho Corporation, an Indian tech giant with more than 80 million users across its products worldwide. It is one of the few HMRC-recognised MTD Income Tax packages that offers a genuinely free plan — free for businesses with turnover under £50,000 — and even paid plans start at just £8/month.
Who is Zoho Books best for?
Sole traders who want a free MTD-recognised option with full accounting features
Zoho Books is particularly attractive if you want a free MTD-recognised option with full accounting features. Unlike some free tiers that are limited to basic bookkeeping, Zoho Books includes invoicing, expense tracking, bank feeds, and reporting on the free plan.
Pricing
Free for businesses with turnover under £50k, otherwise from £8/month
| Plan | Price | Invoices | MTD ITSA |
|---|---|---|---|
| Free | £0/month | Up to 1,000/year | Yes |
| Standard | £8/month | 5,000/year | Yes |
| Professional | £12/month | 10,000/year | Yes |
MTD Income Tax status
HMRC-recognised for MTD ITSA (free plan includes MTD ITSA). Confirm on the official gov.uk MTD software list before signing up.
Pros & cons
Pros
- Free for businesses with turnover under £50,000
- HMRC-recognised for MTD ITSA on the free plan
- Full accounting features: invoicing, expenses, bank feeds, reporting
- Paid plans from just £8/month
Cons
- Free plan limited to 1,000 invoices per year
- Fewer UK-specific integrations than Xero or Sage
- Email-only support on free plan
Verdict
Zoho Books is a strong free option for sole traders who want full accounting features and MTD compliance. If your turnover is under £50,000, it is hard to beat free. Even if you need a paid plan, £8/month is competitive with Xero Simple at £7/month.
The main downside is fewer UK-specific integrations compared to Xero or Sage. If you need to connect to UK-specific tools, Xero may be the better choice. But for sole traders who want a simple, free, MTD-ready solution, Zoho Books is worth serious consideration.
Frequently asked questions
Is Zoho Books HMRC-recognised for MTD Income Tax?
Yes. Zoho Books is fully HMRC-recognised for MTD ITSA — including on the free plan — and can submit quarterly updates and your End of Period Statement directly to HMRC.
Does Zoho Books offer a free trial?
It doesn’t rely on one — Zoho Books is genuinely free for businesses with turnover under £50,000 (capped at 1,000 invoices/year). Paid plans start at £8/month.
Can I use Zoho Books on my phone?
Yes. Zoho Books has a solid mobile app, so you can invoice, log expenses, and reconcile bank feeds on the go.
What happens if I want to switch later?
You can export your data and switch to another HMRC-recognised provider at any time. Your submission history with HMRC stays intact.