# Accounting software for UK freelancers

Canonical: https://taxmo.co.uk/freelancer-accounting-software
Last updated: 2026-04-25

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.

## Related pages

- [Accounting software for UK sole traders](https://taxmo.co.uk/accounting-software-sole-traders)
- [Accounting software for UK contractors](https://taxmo.co.uk/contractor-accounting-software)
- [Self Assessment without the January reconstruction](https://taxmo.co.uk/self-assessment-software)

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This page explains how UK rules work rather than quoting thresholds, rates or allowances, which are indexed or reset at fiscal events. Check current amounts on GOV.UK.