Accounting software for UK freelancers

Freelancing is two jobs: the work, and getting paid for the work. The second one is where the software should help.

Invoicing that follows through

Raise an invoice, save it as a template if you bill the same thing again, or set it recurring if you bill monthly.

  • Templates for work you invoice repeatedly
  • Recurring invoices raised automatically on schedule
  • Overdue invoices surfaced on the dashboard rather than forgotten
  • Statutory interest on late commercial payments, which you are entitled to charge

Expenses captured where they happen

Photograph a receipt, forward it to your Taxmo email address, or send it on WhatsApp. The vendor, amount, VAT and date are read for you and held for confirmation, so nothing depends on a shoebox in March.

Knowing your tax position early

The dashboard carries a running estimate of income tax, National Insurance and VAT, and a suggested amount to set aside per thousand pounds received. That is the number that makes January survivable.

Common questions

What can I claim as a freelancer?

Costs incurred wholly and exclusively for the business. Mixed-use costs are apportioned, and a few categories, notably client entertaining, are never deductible however business-related they feel. Working from home and mileage can be claimed at flat rates or actual cost, whichever suits you, but not both for the same thing.

Should I be a sole trader or a limited company?

It depends on your profit level, your appetite for admin, and whether clients require it. A company brings separate filing obligations, Corporation Tax, and Companies House deadlines. It is worth an accountant's opinion on your actual numbers rather than a rule of thumb.

Can I charge interest on late payment?

Between businesses, yes, under the Late Payment of Commercial Debts (Interest) Act 1998, along with a fixed sum for recovery costs. Taxmo calculates it and it appears on the invoice reminder.

Last updated 2026-04-25. Thresholds, rates and allowances are indexed or reset at fiscal events and are deliberately not quoted here; check GOV.UK for current amounts.