Best accounting software for tradesmen and builders (UK)

Your accounting software has two jobs: keep HMRC happy and save you evenings. For UK trades that means Making Tax Digital, the Construction Industry Scheme (CIS) for builders, and a clean link to the app you quote and invoice from. We compared Xero, QuickBooks, Sage and FreeAgent on their UK pricing pages on 12 October 2026.

Making Tax Digital for Income Tax: who must join and when?

Making Tax Digital (MTD) means keeping digital records and sending updates to HMRC through approved software, rather than one paper-style return a year. For VAT it already applies to VAT-registered businesses. For Income Tax it is being phased in for sole traders and landlords.

"Qualifying income" is your self-employment income plus any property income (GOV.UK explains exactly how to work it out). So a plumber with £55,000 of qualifying income is already in, and a sole trader with £32,000 has until April 2027. Some people can be exempt, for example if they cannot use digital tools.

Xero, QuickBooks, Sage or FreeAgent: how do they compare?

*Intuit's UK pricing page showed "Loading live prices" when we checked, so the QuickBooks figures come from a third-party check dated 15 August 2026 and are not confirmed on Intuit's own page.

Our picks

Which package fits your situation?

Two practical tips. First, ask your accountant which package they prefer before you choose, because switching later means moving your whole history. Second, every package above has a 90% or 50% intro offer, so look at the full price after month six when you compare, not the offer price.

What matters most for trades in an accounting package?

• A working link to your job app, so invoices, payments and customers flow across without retyping.
• Bank feeds, so card payments from site and bank transfers match against invoices.
• Receipt capture for materials bought at the merchant counter. Some job apps do this too: Tradify Plus has SmartRead AI bill capture and Powered Now Premium has an AI receipt scanner.
• CIS if you work in construction, on the right plan.
• MTD for VAT and Income Tax, confirmed with HMRC's software finder.

How does CIS work for builders?

The Construction Industry Scheme is HMRC's way of collecting tax from construction subcontractors up front. If you are a builder, roofer, plasterer, electrician or plumber working on construction jobs, it probably affects you.

• Contractors (anyone paying subcontractors for construction work) must register. Some businesses outside construction that spend heavily on construction work must register too; check GOV.UK's contractor guidance for the threshold.
• Subcontractors must register if they do construction work for a contractor.
• Deductions: contractors deduct 20% from registered subcontractors and 30% from unregistered ones. These count as advance payments towards the subcontractor's tax and National Insurance.
• Gross payment status lets a subcontractor be paid without deductions taken in advance.
• Monthly returns: contractors file by the 19th of the month after the tax month ends (for example, 6 May to 5 June is due by 19 June).

What software helps with: working out the deduction on each subcontractor bill, producing payment and deduction statements, tracking deductions taken from you (so you can claim them back), and filing the monthly return. As a subcontractor, Xero, QuickBooks or Sage Standard will track the deductions taken from your payments. As a contractor, budget for Xero's £5 CIS add-on or a Sage Standard plan. Builders should also read our builders software guide for job costing and quoting.

Which job management apps sync with which accounts package?

This is the table most comparison sites skip. Pick your accounts package and your job app together, or you will end up typing invoices twice.

The pattern is clear: Xero and QuickBooks work with almost everything. Sage narrows your choice to Tradify, Commusoft or Joblogic among the apps we checked. FreeAgent narrows it further.

Do you need both a job app and accounting software?

You can manage with one app if you are a sole trader, you are not in CIS, and your main need is quotes, invoices and MTD. Powered Now is HMRC-recognised for MTD for VAT and Income Tax and includes quotes, invoices, expenses and supplier invoices, from £28 a month ex VAT. See our Powered Now review.

You need both if you employ staff (payroll), you are a CIS contractor, your accountant wants full bookkeeping, or you run a limited company with year-end accounts.

Back to the Software for Tradespeople home page for every comparison.