# QuickBooks

> Bookkeeping and tax software for UK sole traders and small businesses.

- Accounting, Best value
- Platforms: eBay, Vinted, Etsy, Depop, TikTok Shop, Whatnot
- Orders a week: 0–2000
- Not yet checked by a person

Suits you if you have registered as a sole trader and want income and costs in one place. HMRC recognises it for Making Tax Digital, and it can submit VAT returns to HMRC.

## Sole traders selling on several platforms

You have registered as a sole trader, your sales come in from several platforms, and you want income, costs and tax in one place. QuickBooks offers plans for sole traders and for limited companies.

It suits you if you want to see an estimate of your tax bill through the year and file through the same software.

A typical user sells on two or more platforms, has a separate business bank account and handles enough transactions that a spreadsheet has stopped coping.

## Bank feeds, receipts and VAT returns

QuickBooks connects to your business bank, sorts transactions into categories, and captures receipts from your phone. HMRC recognises it for Making Tax Digital, and it can submit VAT returns.

Plans differ in invoicing, stock tracking and users; the QuickBooks UK site lists current pricing and the features on each plan.

Try the mobile app too. If you buy stock at markets or charity shops, snap each receipt on the spot to keep your costs complete.

## Getting your shop into QuickBooks

Link your business bank account and any payout accounts. Create categories that match your selling: stock bought, postage, packaging, platform fees and equipment such as your label printer.

Tag each sale and cost as it arrives. At the end of each quarter, review the summary so tax time holds no surprises.

Set up rules for repeat transactions, such as monthly platform subscriptions or regular packaging orders, and QuickBooks will categorise them as they arrive.

## Xero, Sage, FreeAgent and your accountant

Xero suits a growing business that wants a large app ecosystem and many accountants who know it.

Sage has a free plan for non-VAT sole traders, and FreeAgent comes free with some NatWest Group business accounts; both cost less for a small seller.

Ask your accountant which package they work in before you choose. On the same software, they can log in to your file instead of asking you for exports.

## Records HMRC expects

Keep digital records of your sales and costs and the receipts behind them. Making Tax Digital for Income Tax applies from April 2026 above £50,000 of qualifying income, with lower thresholds in later years; gov.uk has the current rules.

Record stock purchases as you go and you can work out profit per item, which shows you the categories that earn their shelf space.

Keep mileage records too if you drive to car boots, auctions or a Post Office, since you may be able to claim business mileage; HMRC's guidance on allowable costs sets out the rules.

## Common mistakes

- Split each marketplace payout into sales and fees. Booked as one lump of income, it hides what you pay the platform.
- Cash stock purchases slip out of your costs unless you photograph the receipt at the till.
- Business purchases on your personal account muddle the bank feed; keep a separate account.
- Tag transactions weekly. Leave the books until January and Self Assessment turns stressful.
- If family use takes half the home printer's output, claim only the business share; the full cost overstates expenses.

## Guides

- [HMRC and selling online: reporting rules and records](https://sellersetups.com/guides/hmrc-selling-online): The platform reporting rules in plain English, when selling becomes trading, the £1,000 trading allowance, capital gains on valuables and the records to keep.

## Questions

### Is QuickBooks HMRC recognised?

Yes, for Making Tax Digital, including VAT submissions.

### Can a sole trader use QuickBooks?

QuickBooks offers plans aimed at sole traders as well as companies.

### Does it track stock?

Some plans include inventory tracking; the plan details on the QuickBooks UK site show which.

### How much does QuickBooks cost?

Pricing changes with plans and offers. The QuickBooks UK site has the current figures.

### Can QuickBooks estimate my tax bill?

QuickBooks shows a running estimate based on the records you keep, which helps you set money aside through the year.

### Can I move from QuickBooks to another package later?

You can export your data, though switching mid-year means extra work. A change at the start of a tax year keeps it simpler.
