Accounting software for UK sole traders

Keep records as you trade

Regular record keeping makes it easier to understand business performance and prepare tax information. LedgeX gives sole traders a structured place for the records and workflows behind their accounts.

Make Self Assessment preparation easier

Self-employed people may need to report business income and expenses through Self Assessment. Keeping the underlying bookkeeping and supporting information organised reduces the amount of reconstruction needed at year end.

Prepare for digital tax obligations

Making Tax Digital for Income Tax requires qualifying sole traders and landlords to keep digital records and use compatible software. LedgeX is building workflows around those requirements as the service is introduced in phases.

Separate business activity clearly

Where a person has more than one self-employed business, HMRC requires separate digital records and quarterly updates for each business under MTD for Income Tax. Clear separation of records is therefore important.

Frequently asked questions

Do sole traders need accounting software?

Some sole traders can keep records in different ways, but digital accounting software can make bookkeeping, record keeping and tax preparation easier to manage.

When does MTD for Income Tax apply?

HMRC introduced it from 6 April 2026 for qualifying income over £50,000, with thresholds over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028.

What records should a sole trader keep?

Business income, expenses and supporting evidence such as invoices and bank records are commonly needed. Exact requirements depend on the business and tax circumstances.

Official guidance

HMRC: Making Tax Digital for Income Tax · HMRC: Create digital records

Reviewed September 2026