VAT Accounting Software Comparison
Find the right accounting software for managing your VAT
Choosing the right accounting software can make managing your VAT obligations significantly easier. The right software can help you track sales and purchases, calculate VAT automatically, and submit your VAT returns directly to HMRC. It will also allow you to share all the relevant data with your accountant or tax advisor without having to exchange spreadsheets, invoices, receipts and other documents. Here's our comparison of the leading VAT-compatible accounting software solutions. For this evaluation we have looked at Intuit Quickbooks, Xero, FreeAgent and Sage.
QuickBooks Online
Key Features:
- MTD-compliant VAT return submission
- Automated VAT calculation
- Receipt capture and expense tracking
- Bank feed integration
- Comprehensive reporting
Starting from: £12/month
QuickBooks Online is an excellent all-around solution for small to medium-sized businesses. It offers robust VAT management features with an intuitive interface. The mobile app is particularly useful for on-the-go receipt capture and expense management.
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Xero
Key Features:
- Full MTD compliance
- Automatic VAT calculation and categorization
- Bank reconciliation
- Detailed VAT reports
- Unlimited users
Starting from: £14/month
Xero stands out for its user-friendly interface and comprehensive features. It excels in VAT management with automatic tax calculations and direct HMRC filing. The platform offers excellent scalability, making it suitable for growing businesses.
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FreeAgent
Key Features:
- MTD-compatible VAT filing
- Automatic VAT calculations
- Flat Rate Scheme support
- VAT cashflow forecasting
- Multi-currency support
Starting from: £19/month
FreeAgent is particularly well-suited for freelancers, small businesses, and contractors. Its VAT features are comprehensive, with excellent support for the Flat Rate Scheme. The interface is simple yet powerful, with a focus on ease of use.
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Sage Business Cloud Accounting
Key Features:
- MTD-ready VAT returns
- Automated VAT calculations
- Cash flow forecasting
- UK-based support
- Strong audit trails
Starting from: £12/month
Sage is a trusted name in accounting software with decades of experience. Its strength lies in its robust accounting features and compliance with UK regulations. The VAT capabilities are comprehensive, though the user interface can be less intuitive than some competitors.
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Choosing the Right VAT Software
When selecting VAT software for your business, consider these factors:
- Business size and complexity: Ensure the software can handle your transaction volume and specific VAT scenarios.
- MTD compliance: Verify that the software is fully compliant with Making Tax Digital requirements.
- Ease of use: Consider how intuitive the software is, especially if you're not accounting-savvy.
- Integration capabilities: Check if the software can integrate with your existing business tools.
- Pricing structure: Compare costs based on your business needs and expected growth.
- Support options: Evaluate the availability and quality of customer support.
All the software options reviewed above are MTD-compliant and offer reliable VAT management features. Your specific business requirements and preferences will determine which is the best fit for you.