UK Software
Best UK Accounting Software 2026
Cloud accounting platforms with HMRC Making Tax Digital compliance, VAT returns, and UK bank feeds.
1. Xero
From £15/month
(4.5/5)
2800 reviews
The UK's most popular cloud accounting platform with built-in Making Tax Digital compliance. Xero handles invoicing, bank reconciliation, VAT returns, payroll, and multi-currency transactions. Over 1,000 integrations via the Xero App Store and strong mobile apps for iOS and Android.
Key Features
Making Tax Digital compliant
Automated bank feeds and reconciliation
VAT return submission to HMRC
Built-in UK payroll
1000+ app integrations
Multi-currency support
Best for: UK small businesses wanting modern cloud accounting with HMRC compliance
Visit Xero 2. Zoho Books
From £12/month (free plan available)
(4.5/5)
61 reviews
Affordable cloud accounting integrated with the wider Zoho ecosystem. Zoho Books is HMRC-recognised for Making Tax Digital, handling VAT returns, invoicing, automated bank feeds, inventory, and multi-currency transactions. A free plan is available for small businesses, making it one of the lowest-cost routes to MTD compliance.
Key Features
HMRC-recognised Making Tax Digital software
VAT return preparation and submission
Invoicing with automated payment reminders
Bank feeds and reconciliation
Inventory management
Zoho ecosystem integration (CRM, Expense, Payroll)
Best for: UK small businesses wanting affordable MTD-compliant accounting within the Zoho ecosystem
Visit Zoho Books