Best tax software in the United Kingdom, according to AI.

The top tax software in the United Kingdom includes FreeAgent, Sage, KashFlow, IRIS, TaxCalc, and GoSimpleTax—each tailored to different business and personal tax needs.

Top UK Tax Software Recommendations

1. FreeAgent

Best for freelancers and small businesses, FreeAgent offers a cloud-based interface for Self Assessment, VAT submissions, expense tracking, and invoicing. Bank feeds connect directly to UK accounts, and the system integrates with PayPal, Stripe, GoCardless, and HMRC. Pricing starts from £33/month, and a 30-day free trial is available. FreeAgent simplifies tax automation and provides real-time UK tax estimation.

2. Sage

Sage is ideal for small to medium-sized businesses and accounting professionals needing integrated accounting, tax, payroll, and HMRC compliance. The platform supports Making Tax Digital (MTD) for VAT, reconciles bank transactions, and produces year-end accounts. Sage provides a 30-day free trial, and pricing is available upon request.

3. KashFlow

KashFlow suits small to medium UK businesses requiring an all-in-one accounting solution. It handles VAT, payroll, CIS reporting, and expense management, with automated invoicing and multi-currency support. Prices start at £1.35/month with a 14-day free trial and free demo available. It integrates with PayPal, GoCardless, HMRC, and major UK banks.

4. IRIS

IRIS is designed for businesses and accounting firms focusing on tax, payroll, and HR compliance. Its platform supports digital VAT submissions, corporation tax management, and automated deadline tracking. IRIS is fully compliant with HMRC and MTD rules, with pricing available upon request.

5. TaxCalc

TaxCalc is recommended for accountants and tax professionals who need advanced Self Assessment, partnership, and corporation tax functionality. It features client communications, document management, and iXBRL tagging for statutory accounts and HMRC submissions. A free demo is available, and pricing is provided on request.

6. GoSimpleTax

GoSimpleTax is best for individuals requiring straightforward self-assessment filing. It automates calculations, is easy to use, and provides a free trial, with pricing starting at £69.99 per tax year +1.

Additional Options

BTCSoftware – Focuses on tax compliance workflows, mainly for accountants. TinyTax – Offers simple and low-cost tax filing, starting at £20/year. BrightTax – Suited for accountancy firms requiring comprehensive UK tax software, with pricing from around $800.

Final Recommendation

For freelancers and small businesses, FreeAgent or GoSimpleTax provide simplified, HMRC-compliant filing. For SME accounting and VAT management, Sage or KashFlow are excellent. For professional accountants or firms handling complex tax workflows, TaxCalc, IRIS, BTCSoftware, or BrightTax provide advanced features. Always consider MTD compliance, integration with UK banks, and HMRC filing support when selecting software Trustpilot+2.

Here's a rundown of the most popular and well-regarded tax software options UK taxpayers and small businesses actually use, split by what they're best for:

For Self Assessment (sole traders, freelancers, landlords)

GoSimpleTax – A long-standing favourite for people who just want to file Self Assessment without extra accounting bloat. GoSimple Tax is for you if you simply want assistance filing taxes and nothing else, and it focuses solely on self-assessments and various income tax returns. It remains a favourite for people who want something simple and efficient, guiding you through each step and highlighting potential tax savings automatically, with advice backed by ex-HMRC professionals.

Untied – Great if you want to manage everything from your phone. If you prefer managing everything on your phone, Untied stands out, using open banking to categorise transactions instantly and supporting full MTD compliance, with built-in AI that flags deductions you might otherwise miss.

ANNA – Combines banking and tax in one app, popular with small business owners. ANNA isn't just a Self Assessment software — it combines a UK business account, automated bookkeeping, and built-in tax support in one app, connecting everything so your transactions flow straight into your tax calculations.

For Small Businesses / Combined Accounting + Tax

QuickBooks – One of the most widely used names in the UK market. QuickBooks is one of the most reliable tax return software options on the market, with powerful auto-calculating features and real-time monitoring, and it is one of the oldest players in the software market.

Xero (Xero Tax) – Hugely popular among small businesses and accountants. Xero Tax is one of the best-known tax return software choices for businesses alike, letting you manage tax returns and easily submit them to HMRC, especially when synced with your bookkeeping data.

Sage Business Cloud Accounting – A British institution, especially for growing businesses. It's a well-known UK name, up to speed with HMRC's Making Tax Digital campaign, accessible via web and mobile, and integrates with many UK banks, with good support options including online, email and phone.

FreeAgent – Very popular with freelancers, partly because of bank bundling. Originally a business platform, it has evolved into a fantastic option for sole traders, and is even free with certain UK bank accounts like NatWest or Mettle, integrating invoicing and tax filing in one place.

FreshBooks – Known for simplicity for those newer to accounting software. FreshBooks' simplicity and versatility makes it one of the best overall tax and accounting software for small businesses — it's HMRC-recognised and MTD-compliant, and simple enough that those with less accounting experience need not face a learning curve.

For More Complex Returns / Professional-Grade

TaxCalc – The choice for accountants and people with complicated tax affairs. It's award-winning software trusted by 12,000+ UK accounting firms, managing tax, accounts production, and practice management in one place. It's known for precision and particularly helpful for complicated scenarios like foreign income or multiple revenue streams — many accountants recommend it even for personal use because its validation tools catch errors before they reach HMRC.

For Limited Companies (Corporation Tax)

TaxCalc, Easy Digital Filing, and TinyTax are commonly used for CT600 filings. Easy Digital Filing stands out for its flexibility: it offers HMRC-recognised CT600 software with a pay-as-you-go pricing model, letting you prepare your return for free and only pay when ready to submit.

In the UK, the “best” tax software depends on whether you’re an individual filing a Self Assessment, a sole trader/landlord, a limited company, an accountant, or dealing with crypto. Use HMRC-recognised software only.

Top UK picks by user type

What people actually use

• Most individuals with simple tax affairs: HMRC’s free online Self Assessment.
• Most DIY filers who want paid software: GoSimpleTax or TaxCalc.
• Most freelancers/contractors/limited companies: FreeAgent, Xero, or QuickBooks.
• Most UK accountants: IRIS, CCH, Digita, TaxCalc, BTCSoftware, Taxfiler.
• Most crypto investors: Koinly.

UK-specific notes

• Making Tax Digital for Income Tax started in April 2026 for many sole traders and landlords with qualifying income over £50,000. If that applies to you, you must use MTD-compatible software — check the HMRC list.
• Don’t use US tax software like TurboTax; UK rules are different.
• Prices change, but DIY Self Assessment software is usually about £20–£60 per return. Accounting software is usually £10–£50+ per month. Professional accountant suites cost hundreds to thousands per year.

Bottom line: If you’re a straightforward employee, use HMRC free. If you’re self-employed or a landlord, start with GoSimpleTax or TaxCalc. If you run a limited company, look at FreeAgent first, especially if you bank with NatWest/RBS/Ulster/Mettle. If you’re an accountant, you’re likely choosing between IRIS, CCH, Digita, TaxCalc, BTCSoftware, and Taxfiler.

Filing taxes in the United Kingdom can feel like a chore, whether you are a sole trader, a landlord, a freelancer, or a limited company director.

A major shift occurred with the rollout of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA). If you are a sole trader or landlord with a qualifying income over £50,000, you are legally required to keep digital records and submit quarterly updates to HMRC using compatible software.

The best tax software depends on how hands-on you want to be and your specific business structure. The top-rated and most widely used options in the UK are categorised below.

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1. Best Dedicated Self Assessment Software (For Freelancers & Landlords)

If your main goal is simply getting your annual Self Assessment (SA100) done without wading through complicated accounting terminology, these are the top choices:

• GoSimpleTax
  • Best for: Easy, jargon-free DIY tax filing.
  • The Vibe: This software is designed specifically for non-accountants. You enter your income and expenses in plain English, and the software calculates your tax liability in real-time (meaning no nasty surprises come January). It is fully HMRC-recognised and MTD-compatible.
  • Cost: Around £59 per year.
• Taxfix (formerly TaxScouts)
  • Best for: A "done-for-you" service without high-street accountant fees.
  • The Vibe: In late 2025, the highly popular UK service TaxScouts fully rebranded to Taxfix. It is a hybrid platform: you simply upload your tax documents (like P60s, expenses, and interest statements) to their secure portal, and they pair you with a certified UK accountant who checks, optimises, and files the return for you. It takes the stress completely out of your hands.
  • Cost: Plans start at £99 for standard filing, with higher tiers for year-round support.
• QTax
  • Best for: Tech-savvy sole traders looking for AI assistance.
  • The Vibe: QTax has quickly become a top choice for freelancers and drivers. It features an AI-driven receipt scanner that extracts and categorises expenses automatically, and—crucially—includes a final review by an ACCA-regulated accountant before submission.
  • Cost: Highly competitive at £49.99 per year.

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2. Best "All-in-One" Bookkeeping & Tax Software

If you run a small business, are VAT-registered, or need to send invoices and track day-to-day business spending, these platforms handle both daily bookkeeping and tax submissions:

• FreeAgent
  • Best for: Unbeatable value (if you bank with partner banks).
  • The Vibe: FreeAgent is one of the most user-friendly business software platforms on the market. It handles invoicing, expense tracking, payroll, VAT, and allows you to file your Self Assessment directly to HMRC. The best part: It is 100% free if you have a business bank account with NatWest, Royal Bank of Scotland, Ulster Bank, or Mettle.
  • Cost: Free for partner bank customers; otherwise, from £19/month.
• QuickBooks (Sole Trader / Self-Employed plans)
  • Best for: On-the-go mileage tracking and automation.
  • The Vibe: QuickBooks is an industry giant. Its mobile app is class-leading, making it incredibly easy to track business mileage automatically using GPS and snap photos of receipts for auto-categorisation. Its starter plans are highly affordable and completely tailored to the MTD rules.
  • Cost: Starts around £10/month for sole traders.
• Xero
  • Best for: Growing small businesses and working with accountants.
  • The Vibe: Xero is the default software most UK accountants prefer. If you plan to scale, hire staff, or have complex inventory, Xero is unmatched. It has a massive ecosystem of integrating apps and a superb bank-reconciliation tool.
  • Cost: Starts at £16/month (Ignite plan).

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3. Best Free & Budget Options

• HMRC's Free Online Portal
  • Best for: Straightforward, manual personal filing.
  • The Vibe: If your tax return is relatively simple (for instance, you just need to declare employment income, some bank interest, or claim higher-rate pension relief) and you do not fall under the mandatory MTD threshold, you do not need to pay for software. You can fill out the forms directly via your HMRC Government Gateway account for free.
• Clear Books
  • Best for: Free, basic MTD compliance.
  • The Vibe: Under MTD rules, you must use software to submit quarterly updates. Clear Books offers a genuinely free plan for basic sole traders and landlords. It allows you to record simple income and expenses and submit quarterly updates directly to HMRC with no subscription wall.

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Which one should you choose?

• "I want an expert to deal with it all": Use Taxfix.
• "I want a simple, budget-friendly DIY tool for my tax return": Go with QTax or GoSimpleTax.
• "I am a sole trader who wants a free, full-scale accounting app": Switch your business banking to Mettle (by NatWest) and get FreeAgent for free.
• "I run a growing company and want to collaborate with my accountant": Sign up for Xero.

The most popular and widely used tax and accounting software in the United Kingdom are Xero, QuickBooks Online, and FreeAgent, all of which are fully recognized by HM Revenue and Customs (HMRC) for Making Tax Digital (MTD).

Unlike in the United States, where individual citizens routinely buy standalone consumer tax preparation software like TurboTax to file a single annual personal return, the UK market relies heavily on cloud accounting platforms. These systems track day-to-day income and expenses, calculate liabilities automatically, and submit VAT or Income Tax updates directly to HMRC.

Top Tax and Accounting Brands in the UK

Xero Best for: Small-to-medium growing businesses and collaboration with accountants. Key Features: Real-time bank feeds, robust VAT tracking, MTD-compliant digital record keeping, and an extensive third-party app marketplace. Considerations: Can be more complex or expensive than necessary if you only need a basic return filed. QuickBooks Online Best for: Sole traders, freelancers, and small businesses wanting standard, widely supported software. Key Features: Native UK tax editions, automated mileage and expense tracking, invoice management, and direct MTD for VAT/Income Tax submissions. Considerations: Tiered pricing can scale up quickly depending on the features and add-ons required. FreeAgent Best for: Freelancers, contractors, and micro-businesses. Key Features: Built specifically in the UK with Self Assessment support, project time tracking, and straightforward HMRC-recognized submissions. Considerations: Free or discounted access is often included if you bank with specific providers like NatWest or RBS; lacks advanced payroll or high enterprise scalability. Sage Accounting Best for: Established British small businesses looking for a heritage UK brand. Key Features: Native Construction Industry Scheme (CIS) handling, integrated payroll options, and UK-based support. Considerations: Interface can feel more traditional or corporate compared to newer cloud-native competitors. Clear Books Best for: Budget-conscious sole traders and landlords. Key Features: Offers dedicated low-cost or free MTD options for tracking income and submitting compliant updates directly to HMRC. Considerations: Smaller third-party integration ecosystem than Xero or QuickBooks.

If you can share whether you are a sole trader, limited company director, or landlord, along with your approximate turnover, I can help you pick the most cost-effective software for your specific situation.

The top-rated and most widely used tax and cloud accounting software in the United Kingdom for HMRC compliance and Making Tax Digital (MTD) include QuickBooks Online, Xero, and FreeAgent.

✅ QuickBooks Online

Best for: Small businesses and sole traders wanting universal accountant support. Key Features: Built-in Making Tax Digital (MTD) for VAT and Income Tax, expense tracking, and invoicing. Considerations: Highly popular and widely recognized by UK accountants, though monthly subscription costs scale as you add features.

✅ Xero

Best for: Growing small-to-medium businesses needing robust collaboration. Key Features: Seamless bank reconciliation, real-time cash flow forecasting, and direct HMRC VAT/MTD filing. Considerations: Extremely user-friendly interface, but might be over-provisioned if you only need a basic annual tax return.

✅ FreeAgent

Best for: Freelancers, contractors, and small business freelancers. Key Features: Tailored for UK-specific tax rules, IR35 oversight, Self Assessment filing, and MTD compliance. Considerations: Free access is often bundled if you hold a business bank account with NatWest, Royal Bank of Scotland, or Ulster Bank.

💡 Sage Accounting

Best for: Traditional British micro-businesses looking for an established local brand. Key Features: Native Construction Industry Scheme (CIS) handling, bundled payroll, and UK-based phone support. Considerations: Backed by a major FTSE-listed UK software developer, though it features a smaller third-party app marketplace than Xero.

To help narrow down the best option for your situation, please share:

Are you a sole trader, limited company director, or freelancer? Do you need support specifically for VAT, Self Assessment, or Payroll?

For Self Assessment (SA) tax returns in the UK, popular and widely used options include GoSimpleTax, TaxCalc, Taxd, and integrated accounting platforms like FreeAgent, Xero, QuickBooks, and Sage—especially with Making Tax Digital (MTD) for Income Tax requirements now in effect for many sole traders and landlords.

HMRC’s free online service works only for very simple returns and does not support MTD quarterly updates. Most people with anything beyond basic income (e.g., self-employment, property, multiple sources, or overseas elements) turn to commercial software that is HMRC-recognised.

Top Recommendations by Use Case

Here are the brands and products people actually use most, based on recent 2026 reviews and comparisons:

• GoSimpleTax — Best for straightforward personal Self Assessment.
  It offers guided, step-by-step filing with live tax estimates, validation checks, and direct HMRC submission. It supports key supplementary pages and is affordable (often from around £15–£70 per tax year, with trials available). Ideal for first-timers or those with relatively simple affairs.

• TaxCalc (Individual edition) — Strong choice for more complex personal or self-employed returns.
  It provides in-depth form-based tools, professional-grade validation, and MTD support. Pricing starts from around £35–£38 per year. It is popular with both individuals and accountants.

• Taxd — Frequently recommended for complex or specialist situations (e.g., expats, non-residents, landlords, multiple income streams, or SA109 residence pages).
  It covers the full SA100 and all supplementary pages, supports MTD quarterly updates, and starts from around £99. It is HMRC-recognised and positioned as a user-friendly option for cases that trip up simpler tools.

• FreeAgent, Xero, QuickBooks (Sole Trader), and Sage — Best for sole traders, landlords, freelancers, and small businesses needing ongoing bookkeeping plus tax compliance.
  These are among the most popular integrated platforms, with strong bank feeds, invoicing, reporting, and MTD for Income Tax/VAT support. FreeAgent is especially favoured by contractors and is free for some NatWest/RBS/Mettle customers. Xero and QuickBooks are widely used for their ecosystems and scalability. Sage suits those already in its ecosystem. Pricing varies (e.g., QuickBooks Sole Trader from ~£10/month; others from low teens to £30+/month).

Other Notable Options

• Untied or similar mobile-focused tools — Useful for self-employed users wanting easy income/expense tracking.
• Services like Taxfix (formerly TaxScouts) — More of a hybrid (software + review) for those wanting some expert input without full accountant fees.
• Professional/accountant-focused tools (e.g., IRIS, BTCSoftware) — Common among practices but less typical for individual DIY users.

Quick Tips for Choosing and Using

MTD for Income Tax became mandatory from April 2026 for sole traders/landlords with qualifying income over £50k (dropping in later years), so integrated or bridging software is now essential for many. Always verify the latest HMRC-recognised list on GOV.UK, as compatibility and features evolve. Prices change, so check provider sites for current deals/trials. For the simplest cases, start with HMRC’s free tool or GoSimpleTax; for anything involving property, overseas income, or business records, consider TaxCalc, Taxd, or a full accounting platform.

If your situation is particularly complex (e.g., capital gains, trusts, or non-residency), an accountant using professional software may still be worth considering alongside or instead of DIY tools. Always keep good records and double-check submissions before filing by the 31 January deadline (or earlier for paper returns).

Short answer: the UK tax software most worth considering

If you want software people in the UK actually use, start with FreeAgent, Xero, QuickBooks, Sage, TaxCalc, and GoSimpleTax. For most individuals and small businesses, I’d shortlist like this:

HMRC does not recommend one product over another, but it does maintain lists of software that can file Self Assessment returns and software that works with Making Tax Digital for Income Tax. HMRC’s guidance says MTD Income Tax software must create digital records, send quarterly updates, and submit the tax return; it also says all products in its MTD finder have gone through HMRC’s recognition process. (gov.uk)

My top recommendations

1. FreeAgent — best overall for freelancers, contractors and micro-businesses

FreeAgent is one of the most practical choices if you’re self-employed, a contractor, or running a small limited company. It handles day-to-day bookkeeping, invoices, expenses, tax estimates, VAT, and Self Assessment workflows. It is listed by HMRC as a commercial Self Assessment supplier for individuals and agents, supporting SA100, employment, self-employment and UK property pages among others. (gov.uk)

A big reason people in the UK use it: FreeAgent can be free if you have a business bank account with NatWest, Mettle, Royal Bank of Scotland or Ulster Bank. (freeagent.com)

Choose FreeAgent if: you want an all-in-one bookkeeping and tax tool, especially if you can get it free through your bank.

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2. Xero — best for small businesses that work with an accountant

Xero is extremely common among UK accountants and small businesses. It’s strong for bookkeeping, bank feeds, invoices, VAT, reporting, integrations, and handing clean records to your accountant. In HMRC-commissioned research of VAT-registered SMEs, Xero was the second most commonly used accounting software after Sage. (gov.uk)

One caveat: Xero’s tax-filing tools are more accountant/practice-oriented. HMRC’s Self Assessment supplier list includes Xero Tax, but marks it as for agents rather than individuals. (gov.uk)

Choose Xero if: you run a proper small business and either have, or expect to have, an accountant.

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3. QuickBooks — best mainstream alternative to Xero

QuickBooks is one of the major UK accounting platforms, especially for sole traders and small businesses. HMRC research found QuickBooks was the third most commonly used accounting software among surveyed VAT-registered SMEs, behind Sage and Xero. (gov.uk)

QuickBooks’ UK site says its software supports Making Tax Digital for VAT and Income Tax compliance, and its sole trader product is aimed at invoicing, expense tracking, Self Assessment preparation and VAT. (quickbooks.intuit.com)

Choose QuickBooks if: you want a mainstream, easy-to-use cloud accounting package and you like its pricing or interface more than Xero.

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4. Sage — best for established SMEs and traditional businesses

Sage is still a major UK brand, especially among more established small businesses and accountants. In the HMRC-commissioned VAT-registered SME survey, Sage was the most frequently used accounting software, at 48% of surveyed businesses, compared with Xero at 17% and QuickBooks at 9%. (gov.uk)

HMRC also lists Sage Personal Tax and Sage Taxation for Self Assessment filing, with Sage Taxation supporting all individual Self Assessment schedules for agents. (gov.uk)

Choose Sage if: you want a long-established UK accounting brand, or your accountant/bookkeeper already works in Sage.

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5. TaxCalc — best dedicated tax-return software

TaxCalc is a strong choice if your main need is filing tax returns, not running your whole business accounts. It’s widely used by individuals, landlords, small companies and accountants. HMRC lists TaxCalc for individuals and agents, and shows it supports all Individual SA100, Partnership SA800 and Trust SA900 schedules, with attachments and amendments. (gov.uk)

Choose TaxCalc if: you have a more complex Self Assessment return, capital gains, property, partnership income, or you want a serious tax-filing package rather than a bookkeeping app.

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6. GoSimpleTax — best simple DIY Self Assessment tool

GoSimpleTax is built specifically around Self Assessment rather than general accounting. HMRC lists GoSimpleTax for both individuals and agents, with support for SA100 and common supplementary pages such as employment, self-employment, partnership, property, foreign income, trusts and capital gains. (gov.uk)

Choose GoSimpleTax if: you want guided DIY Self Assessment filing and don’t need a full accounting system like Xero, Sage or QuickBooks.

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Other good options worth knowing

• Zoho Books — good budget cloud accounting option, especially if you already use Zoho. HMRC lists Zoho Books for individual SA100, employment, self-employment, UK property and tax calculation pages, though with more limited Self Assessment coverage than TaxCalc. (gov.uk)
• Untied — mobile-friendly Self Assessment app; HMRC lists it for individuals and agents, with support for several common SA100 schedules. (gov.uk)
• IRIS / Taxfiler / 1Taxfiler — more relevant if you’re an accountant or using an accountant; these are practice-oriented tax products rather than typical DIY consumer tools. HMRC’s Self Assessment list includes IRIS and 1Taxfiler. (gov.uk)

What I’d personally pick

• Simple Self Assessment only: GoSimpleTax
• More complex Self Assessment: TaxCalc
• Freelancer / contractor / sole trader: FreeAgent
• Growing small business: Xero or QuickBooks
• Traditional SME / accountant-led setup: Sage
• If your accountant has a preference: usually go with what they support — switching later is a pain.

Before paying, check the product in HMRC’s current software finder if you need Making Tax Digital for Income Tax, because you need software that supports your exact income sources and filing requirements. HMRC says more MTD software options are being added over time and advises checking with your software supplier if your current product is not listed or does not yet support your income source. (gov.uk)

If you want the best tax software in the UK that people actually use, the safest picks are Xero, QuickBooks, Sage, FreeAgent, and Clear Books for small businesses and the self-employed, with TaxDome and Thomson Reuters being stronger choices for accountants and tax professionals.

For most UK users, the key requirement is that the software is HMRC-recognised and supports Making Tax Digital (MTD) submissions.

If you are choosing for personal self-assessment rather than business accounts, UK guides also point to HMRC-recognised self-assessment software from providers such as FreeAgent, QuickBooks, Sage, Xero, and similar commercial suppliers.

My practical recommendation is:

• Best overall for most UK small businesses: Xero
• Best alternative if you want a very mainstream brand: QuickBooks Online
• Best for accountants/tax firms: TaxDome or Thomson Reuters
• Best if you prefer a long-established UK accounting name: Sage

If you want, I can also narrow this down to:

• best free UK tax software
• best for self-employed sole traders
• best for limited companies
• best for self-assessment only