QuickBooks Review: MTD Software for Sole Traders (2025)
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Reviewed by SoleTraderGuide Editorial TeamMTD Software AnalystLast reviewed 1 March 2025
QuickBooks is a comprehensive, HMRC-recognised MTD platform with one of the widest feature sets available for UK sole traders. The Self-Employed plan offers an affordable entry point, while the higher tiers are among the most capable accounting tools on the market. Its interface can feel busy, but the depth of functionality is hard to beat.
- Best for
- Sole traders wanting comprehensive features and strong reporting
- Starting price
- From £8/month (Self-Employed)
Pros and Cons
What we like
- HMRC-recognised
- Feature-rich platform
- Good reporting and dashboards
- Strong accountant ecosystem
- Self-employed plan available
Watch out for
- No free plan
- Can be pricey at higher tiers
- Interface can feel busy
Key Features
QuickBooks packs a large number of features into its platform. Here are the six most relevant for sole traders using it for MTD.
MTD Income Tax Submissions
QuickBooks is HMRC-recognised for MTD ITSA. Quarterly updates are compiled from your categorised transactions and submitted directly to HMRC.
Mileage Tracking
The mobile app uses your phone GPS to automatically track business journeys. An under-appreciated feature that can save sole traders a significant tax deduction.
Receipt Capture
Photograph receipts with your phone and QuickBooks will extract the key data automatically. Expenses are matched against bank transactions to save time.
Bank Feeds
Connect your UK business or personal bank account for daily automatic imports. QuickBooks uses machine learning to categorise transactions over time.
Self-Assessment Integration
The QuickBooks Self-Employed plan is tailored for sole traders, separating business and personal spending and preparing your figures for tax time.
Reporting Dashboard
Clear profit and loss reports, tax estimates, and cash flow summaries give you a real-time view of your business finances without needing an accountant.
Is QuickBooks Good for MTD Income Tax?
QuickBooks is developed by Intuit, a large US-based financial software company with a dedicated UK team. The platform's MTD capability is well-developed and regularly updated to reflect HMRC rule changes. Intuit's scale means the software is unlikely to miss a deadline or be caught off-guard by a regulatory shift.
The Self-Employed plan is a notable option for sole traders with simpler finances. It is essentially a lightweight MTD tool — it separates business and personal transactions, tracks mileage, captures receipts, and submits quarterly updates. For sole traders earning under the £50,000 threshold with relatively straightforward income, it is one of the most affordable compliant options on the market.
For more complex businesses — those with invoicing needs, VAT registration, or multiple projects — the Simple Start or Essentials plans provide the full bookkeeping suite alongside MTD submissions. The quarterly updates are built into the workflow: as you categorise income and expenses, QuickBooks compiles the quarterly figures in the background.
The self-assessment integration is worth highlighting. QuickBooks uses your categorised transactions to produce an estimate of your tax liability — visible on your dashboard at any point in the year. This is a genuinely useful feature that helps sole traders avoid unexpected tax bills in January.
How Much Does QuickBooks Cost?
QuickBooks offers multiple plans to suit different business sizes. All plans include MTD Income Tax submissions for sole traders.
| Plan | Price | What's included |
|---|---|---|
| Self-Employed | £8/month | Basic MTD for sole traders, mileage tracking, receipt capture |
| Simple Start | £14/month | Invoicing, expenses, bank feeds, MTD submissions |
| Essentials | £28/month | Everything in Simple Start + multi-user access, bill management |
| Plus | £38/month | Everything in Essentials + project tracking, budgeting |
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Who QuickBooks is Best For
- ✓Sole traders who want a comprehensive, feature-rich platform
- ✓Those with a mix of income types (self-employment + property)
- ✓Sole traders who drive for work and want mileage tracking
- ✓Those already in the Intuit ecosystem (TurboTax users)
- ✓Businesses that may employ staff in future
Who Should Look Elsewhere
- ✗Those on very tight budgets who need simple MTD only
- ✗Users who prefer a clean, uncluttered interface
- ✗NatWest/RBS account holders (FreeAgent is free)
- ✗Sole traders who want self-assessment filing included
Alternatives to QuickBooks
Xero
Similar positioning to QuickBooks. Often considered to have a cleaner interface. Strong integrations ecosystem.
Read review →
FreeAgent
Simpler and freelancer-focused with self-assessment filing included. Free with NatWest/RBS accounts.
Read review →
Sage
UK-native product with UK-based support. Comparable pricing to QuickBooks Simple Start.
Read review →
Frequently Asked Questions
Editorial note: This review was produced by the SoleTraderGuide editorial team. We assess software based on hands-on testing, published documentation, and user feedback. Our ratings are independent of commercial arrangements. We may earn a commission if you purchase via our links. Read our editorial policy.
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