Best Invoicing Software in the UK (2026)
Reviewed by the Invoicemonk editorial team
Making Tax Digital is here. We compared the top invoicing tools for UK businesses — MTD compliance, VAT support, and CIS features.
1. Invoicemonk
Our PickBest for UK freelancers & small businesses needing MTD compliance · Pro from $15/month
Invoicemonk is built for UK businesses navigating Making Tax Digital. It auto-applies 20% VAT when GBP is selected, supports CIS reverse charge invoicing for construction, includes VAT number fields for both seller and buyer, and handles multi-currency invoicing for UK businesses billing international clients. The Pro plan covers unlimited invoicing with professional templates.
Pros
- MTD-compatible VAT records
- GBP + multi-currency invoicing
- UK VAT at 20% auto-calculated
- CIS reverse charge support
- Free invoice generator — no signup
Cons
- • No direct HMRC MTD API filing (yet)
- • No payroll module
Ready to switch?
Get started with Invoicemonk Pro from $15/month. Upgrade, downgrade, or cancel anytime.
2. FreeAgent
Best for UK freelancers wanting all-in-one accounting · From £14.50/mo
FreeAgent is a UK-focused accounting platform with native HMRC MTD integration. It's excellent for UK-only freelancers who need full accounting, but it's overkill (and expensive) if you just need compliant invoicing. Multi-currency support is limited on lower tiers.
Pros
- HMRC MTD API filing built in
- Full UK accounting
- Self Assessment support
- Bank feeds
Cons
- • No free plan
- • Expensive for simple invoicing
- • Limited multi-currency on basic plan
- • UK-only — no global compliance
3. Xero
Best for Growing UK businesses needing scalable accounting · From £15/mo
Xero is a powerful cloud accounting platform with strong UK support and MTD compliance. However, the Starter plan limits you to 20 invoices per month, and the full feature set requires the Growing or Established plan at £30-42/month.
Pros
- MTD VAT filing
- Extensive app marketplace
- Multi-currency
- Bank reconciliation
Cons
- • No free plan
- • Invoice limits on Starter plan
- • Complex for simple invoicing needs
- • Add-ons increase cost quickly
4. Wave
Best for Basic free invoicing (limited UK compliance) · Free
Wave is free and functional for basic invoicing, but it lacks UK-specific features. No MTD compliance, no CIS reverse charge, and payment processing has higher fees in the UK. Fine for very simple invoicing, but not suitable for VAT-registered businesses.
Pros
- Free invoicing and accounting
- Clean interface
- Receipt scanning
Cons
- • No MTD VAT filing
- • Payment processing fees in UK
- • No CIS support
- • Limited UK-specific tax features
Ready to switch?
Get started with Invoicemonk Pro from $15/month. Upgrade, downgrade, or cancel anytime.
Pros and cons of each option
Each tool with its "best for" label, price, and the honest trade-offs.
Invoicemonk
Pro $15/moBest overall for UK businesses invoicing at home and abroad
Pros
- Unlimited invoices, clients and currency accounts
- HMRC VAT invoicing compliance built in
- Receipt scanning and expense tracking included
- Up to 5 team members on the entry plan
Cons
- —No time tracking
- —No payroll
- —Free plan capped at 3 invoices/month
Xero
From $20/moBest for UK businesses needing payroll and MTD-ready books
Pros
- Strong bank reconciliation
- Payroll in several countries
- Large advisor network
Cons
- —Invoice limits on the entry plan
- —Higher entry price
- —Accounting-first learning curve
Zoho Books
From $15/moBest for UK teams already using Zoho
Pros
- Time tracking included
- Workflow automation
- Deep Zoho integrations
Cons
- —Customer caps on lower tiers
- —Per-seat pricing
- —Busier interface
Wave
Free tierBest free option only if you invoice US or Canadian clients
Pros
- Free invoicing and accounting
- Receipt capture included
- Quick to set up
Cons
- —Payments and multi-currency limited to the US and Canada
- —No e-invoicing mandate coverage
- —Limited support on the free tier
Frequently Asked Questions
What is the best invoicing software for UK businesses?
Invoicemonk is the best invoicing software for UK businesses in 2026. It includes MTD-compatible VAT records, 20% VAT auto-calculation for GBP, CIS reverse charge support, VAT number fields, and multi-currency invoicing — all from $15/month on the Pro plan.
Do I need MTD-compatible invoicing software?
If you're VAT-registered in the UK (mandatory above £90,000 turnover), you must keep digital VAT records under Making Tax Digital. Your invoicing software should produce MTD-compatible records that can be submitted to HMRC via API — either directly or through bridging software.
What does Invoicemonk cost for UK freelancers?
Invoicemonk's Pro plan starts at $15/month with unlimited invoices, 20% VAT calculation, VAT number fields, and multi-currency support — everything a UK freelancer needs for compliant invoicing.
Ready to switch?
Get started with Invoicemonk Pro from $15/month. Upgrade, downgrade, or cancel anytime.
E-invoicing mandates supported
Invoicemonk is built for the 18 live e-invoicing mandates worldwide — coverage general invoicing tools don't offer, including United Kingdom's HMRC (His Majesty's Revenue and Customs) Making Tax Digital for VAT.
18 mandates live across 5 regions:
Fatoorah Phase 2, Fatoorah Phase 1, MyInvois e-Invoicing, GST e-Invoicing (IRN + QR), Peppol BIS Billing 3.0 (B2B and B2G), FIRS Merchant-Buyer Solution (MBS) e-Invoicing, Making Tax Digital for VAT, eTIMS (Electronic Tax Invoice Management System), Certified Invoicing System (E-VAT), EIS, SARS Tax Invoice Requirements (VAT Act s.20) + e-Filing VAT201, Fiscalisation Data Management System (FDMS), VAT Act tax invoice requirements + SRC e-Filing, NF-e (Nota Fiscal Eletrônica) and NFS-e (services), Invoice Processing Platform (IPP), CRA GST/HST tax invoice + Peppol BIS Billing Canada, FatturaPA via Sistema di Interscambio (clearance), SAF-T BG reporting + B2G Peppol BIS Billing 3.0 and planned domestic e-invoicing.
MTD-Ready Invoicing — Free
Create HMRC-compliant invoices with 20% VAT, CIS reverse charge, and multi-currency. No signup required.
Get started with Invoicemonk