Sole trader bookkeeping, sorted.
LedgerlyPro turns your receipts and bank transactions into clean books and a live Self-Assessment estimate — so the only surprise at tax time is how little time it took. From £9.99/month.
- Built around UK Self-Assessment rules
- 45p/25p mileage tracking included
- £1,000 trading allowance handled
- MTD for Income Tax ready
- Free accountant read-only access
- From £9.99/month, cancel anytime
Features
Live tax estimate
See your Income Tax and Class 4 NI bill update in real time as you trade — never get caught out in January again.
3-second receipts
Snap a photo and the AI logs the supplier, amount, VAT and the correct allowable-expense category.
Automatic tax pot maths
Know exactly how much of each payment to set aside, so you always have the cash ready for HMRC.
Self-Assessment ready
Export a tidy income-and-expenses summary your accountant (or HMRC) can use in minutes.
Bookkeeping for sole traders, without the jargon
As a UK sole trader you and your business are the same legal person, which keeps things simple — but it also means HMRC expects you to keep accurate records of every pound you earn and spend, and to report your profit through Self-Assessment each year. Get the records right and tax becomes a quick calculation. Get them wrong and you either overpay or risk a penalty.
LedgerlyPro is bookkeeping software designed specifically for sole traders. It captures your income from invoices and bank feeds, lets you scan expenses with your phone, and applies HMRC's rules — allowable expenses, the £1,000 trading allowance, simplified mileage at 45p then 25p per mile, and the use-of-home flat rate — so your taxable profit is always accurate.
Know your tax bill before HMRC does
The single biggest stress for new sole traders is the January tax bill — and the payments on account that can land alongside it. LedgerlyPro removes the shock by calculating your liability continuously.
| Profit | Income Tax | Class 4 NI | Roughly set aside |
|---|---|---|---|
| £25,000 | ~£2,486 | ~£746 | ~13% |
| £45,000 | ~£6,486 | ~£1,946 | ~19% |
| £70,000 | ~£15,432 | ~£2,657 | ~26% |
Figures are 2026/27 estimates for illustration. LedgerlyPro shows your own number, updated live, and reminds you about payments on account so the 31 January and 31 July deadlines never catch you out.
Read the full 2026/27 sole trader tax breakdown with worked examples.
Making Tax Digital for sole traders
MTD for Income Tax became mandatory in April 2026 for sole traders and landlords with qualifying income over £50,000, with the £30,000 band following in April 2027. It replaces one annual return with quarterly digital updates plus a final declaration.
LedgerlyPro keeps your records digital and MTD-ready out of the box. Your quarterly income and expense totals are always one click away, so you or your accountant can submit on time and avoid the new penalty-point fines.
MTD-compliant bookkeeping software · Making Tax Digital explained
Why sole traders choose LedgerlyPro over Xero or QuickBooks
Legacy accounting suites are built for accountants and larger firms, with pricing and complexity to match. As a one-person business you want the essentials done brilliantly: capture income and costs, know your tax, get paid, and keep your accountant happy. That's exactly what LedgerlyPro does — at a price that makes sense for a sole trader, starting at £9.99/month with no per-feature upsells.
Frequently asked questions
What bookkeeping do sole traders need to do?
As a sole trader you must keep records of all business income and expenses, work out your taxable profit, and report it to HMRC through Self-Assessment (and quarterly MTD updates if your income is over the threshold). LedgerlyPro automates the record-keeping and calculates your profit and tax for you.
How much should a sole trader set aside for tax?
A safe rule of thumb is 25–30% of your profit. LedgerlyPro's live tax estimator recalculates the exact figure every time an invoice is paid or an expense lands, so you always know how much to keep in your tax pot.
Do sole traders need MTD-compatible software?
If your qualifying income is over £50,000 you must use MTD-compatible software for Income Tax from April 2026 (£30,000 from April 2027). LedgerlyPro keeps your digital records MTD-ready so you can submit quarterly updates on time.
Can LedgerlyPro replace my accountant?
It can replace the manual bookkeeping. Many sole traders use LedgerlyPro for day-to-day records and give their accountant a free read-only link for year-end and tax planning — which usually lowers their accountancy bill.
Is there a free trial?
Yes — try every feature free for 30 days, no credit card required. Plans then start at £9.99/month.
New to self-employment? How to do bookkeeping as a sole trader — a step-by-step guide.
Compare us: LedgerlyPro vs QuickBooks for the self-employed.
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Sole trader bookkeeping, free for 30 days
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