QuickBooks Self Employed vs Simple Start UK: Which Plan Is Right for You?
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The Deciding Factor Is Not MTD
Most comparisons of QuickBooks’ two entry-level plans turn on Making Tax Digital for Income Tax: the sole trader plan cannot do it, so pay for Simple Start.
That is no longer true. Both plans are MTD for Income Tax ready. QuickBooks labels Sole Trader Plus and Simple Start as MTD ready on its own pages, and the sole trader plan handles quarterly updates and the final declaration.
So the question is a different one, and it has a much cleaner answer: are you VAT registered? Sole Trader Plus cannot file VAT returns. That single limitation decides this for almost everybody, and it saves you £6 a month if it does not apply to you.
Two other things to clear up first. The sole trader product is now called QuickBooks Sole Trader Plus — the “QuickBooks Self-Employed” name has been retired, though it survives in app footnotes and support listings. And MTD for Income Tax has applied since 6 April 2026 to those with qualifying income above £50,000, so this is a current obligation rather than a 2027 planning exercise.
What Each Plan Is
QuickBooks Sole Trader Plus is built for sole traders who are not VAT registered: invoicing, expenses, receipt capture, GPS mileage tracking and Self Assessment preparation. Deliberately stripped back, with no balance sheet and no inventory.
QuickBooks Simple Start is the entry tier of QuickBooks Online proper — double-entry accounting with the higher tiers’ features switched off. It suits sole traders and very small businesses wanting full accounting records, VAT returns, and a platform to grow into.
MTD for Income Tax: Both Plans Qualify
QuickBooks’ own Making Tax Digital page lists Sole Trader Plus and Simple Start with MTD READY labels, with Essentials, Plus and Advanced also HMRC recognised. The sole trader page states the plan is “Making Tax Digital for IT ready” and covers submitting quarterly and final Income Tax returns.
For context on the obligation itself:
- £50,000 qualifying income — mandatory since 6 April 2026
- £30,000 — from April 2027
- £20,000 — from April 2028, confirmed rather than expected
Qualifying income is gross turnover, not profit, assessed on an earlier tax year. Quarterly deadlines are 7 August, 7 November, 7 February and 7 May, with the Final Declaration by 31 January. Our QuickBooks MTD setup guide covers the process, including the first-year penalty easement.
So if MTD compliance is your only concern, the cheaper plan does it.
The Real Deciding Factor: VAT
Sole Trader Plus does not handle VAT. QuickBooks states it plainly: the plan is for non-VAT registered traders, and direct VAT submission to HMRC is not available on it. There is no VAT error checker either, and no workaround.
MTD for VAT is on Simple Start, Essentials, Plus and Advanced.
VAT registration becomes compulsory once taxable turnover exceeds £90,000 on a rolling twelve-month basis, and you must notify HMRC within 30 days of the end of the month in which you crossed it. Our VAT guide covers the forward-look and backward-look tests.
Which gives a simple decision:
- VAT registered, or likely to be within the year? Simple Start, at minimum.
- Not VAT registered and not close to £90,000? Sole Trader Plus is MTD ready and £6 a month cheaper.
Feature by Feature
Invoicing
Sole Trader Plus does create, send and track invoices with your logo. Simple Start adds custom templates, recurring invoices and automated payment reminders, plus online payment acceptance.
Edge: Simple Start, meaningfully so if you invoice regularly and dislike chasing.
VAT
Covered above. Simple Start, decisively.
Bank Feeds
Both connect your bank and import transactions. On Sole Trader Plus the categorisation is business-or-personal and feeds a simplified tax summary, which is genuinely well suited to a sole trader running one mixed account. On Simple Start it feeds double-entry records, which is more powerful and asks a little more of you.
Tie, with the personal/business split a real convenience on the cheaper plan.
Mileage Tracking
Sole Trader Plus includes GPS mileage tracking via the mobile app, on iOS and Android. Simple Start does not — you log mileage manually as an expense.
Edge: Sole Trader Plus, and for a driver or a mobile trade this is worth real money in claimed mileage.
Users and Chart of Accounts
Both are single-user, with free accountant access that does not consume your seat. People often assume Simple Start adds users; it does not — that is Essentials at £38 for three.
Sole Trader Plus caps the chart of accounts at 250 accounts, which no sole trader will trouble.
Tie on users.
CIS
Worth knowing if you are in construction, because it is usually assumed to be a premium feature: QuickBooks includes CIS functionality across its plans. You do not need to step up a tier for Construction Industry Scheme deductions.
If you engage subcontractors, the surrounding obligations matter more than the software: deductions at 0%, 20% or 30% by verification status, monthly returns by the 19th, and nil returns mandatory again from 6 April 2026. Our guide to hiring subcontractors covers it.
Pricing
| Sole Trader Plus | Simple Start | |
|---|---|---|
| Standard, ex-VAT | £10/month | £16/month |
| With VAT at 20% | £12 | £19.20 |
| First six months | £1 | £1.60 |
The introductory offer is 90% off for six months, not the 50% often reported, so the step up in month seven is roughly tenfold rather than double. Budget on £10 and £16, and set a reminder for month five. Full detail in our QuickBooks pricing guide.
The real gap is £6 a month, or £72 a year, rather than the £4–5 usually quoted. For a VAT-registered trader that £72 is not optional. For a non-registered one it buys recurring invoices and double-entry records you may not need.
A 30-day free trial exists, but it is normally mutually exclusive with the 90% discount — you take one or the other, and at 90% off the discount is usually the better deal.
The Migration Question
This is the strongest argument in the draft case for Simple Start and it still holds.
Sole Trader Plus and QuickBooks Online are different products with different data structures. Moving up is not a switch you flip — a migration tool exists, but historical transactions and categorisations may not carry across cleanly, and you may be re-entering data or reconciling with your accountant.
Starting on Simple Start and moving to Essentials or Plus later is seamless by comparison: same platform, more features unlocked, data and history intact.
So if you can see VAT registration or a second user coming within a year, the £6 a month is cheap insurance against that friction. If you cannot, paying it now to avoid a migration you may never need is a different calculation.
One Thing on QuickBooks’ Own Page to Ignore
QuickBooks’ sole trader page says it will help with quarterly updates, the End of Period Statement and the Final Declaration.
The End of Period Statement has been removed from MTD for Income Tax. There is no separate EOPS under the current rules — the year end is the Final Declaration alone, and that is where capital allowances and other adjustments go.
QuickBooks’ marketing copy reflects the original MTD design, as a lot of software documentation still does. Do not go looking for an EOPS step, and do not worry that you have missed one.
Summary
| Feature | Sole Trader Plus | Simple Start |
|---|---|---|
| MTD for Income Tax | Ready | Ready |
| MTD for VAT | No | Yes |
| VAT returns | No | Yes |
| Invoicing | Basic | Recurring, templates, reminders |
| Bank feeds | Yes, business/personal split | Yes, double-entry |
| Mileage tracking | GPS, automatic | Manual only |
| Double-entry accounting | No | Yes |
| Users | 1 + accountant | 1 + accountant |
| CIS | Yes | Yes |
| Upgrade path | Migration required | Seamless to Essentials/Plus |
| Standard price ex-VAT | £10 | £16 |
FAQ
Can the cheaper plan handle MTD for Income Tax?
Yes. QuickBooks labels Sole Trader Plus as MTD ready and it submits quarterly updates and the final declaration. The old guidance that the sole trader product would never support MTD for Income Tax is out of date.
Can I use Sole Trader Plus if I am VAT registered?
No. The plan does not support VAT tracking or VAT submission to HMRC, and there is no workaround. You need Simple Start at minimum.
Is QuickBooks Self-Employed being discontinued?
QuickBooks has not announced a closure date. What has happened is that Sole Trader Plus is now the current sole trader plan, and Self-Employed appears on QuickBooks’ pages only in mobile app footnotes and support listings rather than as an MTD for Income Tax plan. If you are on the old product, ask QuickBooks which plan you should be on.
Which plan for a sole trader under £30,000 and not VAT registered?
Sole Trader Plus at £10. It is MTD ready, the mileage tracking is genuinely useful, and you are not paying for double-entry accounting you will not use. Revisit if VAT registration comes into view.
Do both plans only allow one user?
Yes, both are single-user with free accountant access. Three users means Essentials at £38.
Do I need an accountant for Simple Start?
No, but the double-entry structure asks slightly more of you than the sole trader plan. Getting the chart of accounts right at the start saves unpicking later, which is worth an hour of an accountant’s time if you are new to bookkeeping.
Is there an alternative worth considering?
Zoho Books is HMRC-recognised for MTD for Income Tax and offers it from a free plan, with the feature enabled on request — see our Zoho Books guide.
The Bottom Line
Forget MTD as the tiebreaker, because both plans handle it. The question is VAT.
Sole Trader Plus at £10 if you are not VAT registered and not approaching £90,000. It is MTD for Income Tax ready, it has the GPS mileage tracking Simple Start lacks, and it is £72 a year cheaper.
Simple Start at £16 if you are VAT registered, approaching the threshold, want recurring invoices and proper double-entry records, or can see a migration coming and would rather not have one.
Both are single-user, both include CIS, and both carry the same 90%-off-for-six-months offer — so whichever you pick, diary month five before the price goes up tenfold.
Pricing and features correct at time of writing. Plans and capabilities are subject to change — always confirm current details on the provider’s website before purchasing. This article is general information, not tax advice; check your own position with HMRC or a qualified accountant.