Zoho Books Pricing UK Explained 2026
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The Free Plan Is Better Than Advertised
Zoho Books is one of the cheaper credible accounting packages for UK small businesses, and its free plan is real rather than a trial. Two things about it are routinely misreported, both in the same direction.
There is no turnover limit. You will read that the free plan is restricted to businesses under £50,000, or under £35,000 depending on which guide you land on. Zoho’s own UK pricing page states no turnover threshold at all. The published limits are about volume and seats, not revenue.
It files both MTD regimes. Not just Income Tax — MTD for VAT filing is on the free plan too. That is a sharper distinction than it sounds: QuickBooks makes you pay £16 a month for Simple Start before it will file a VAT return.
Here is the full ladder, then what each tier actually withholds.
Zoho Books Pricing UK: Every Tier
Priced per organisation, not per user, and excluding local taxes:
| Plan | Annual (per month) | Monthly | Users |
|---|---|---|---|
| Free | £0 | £0 | 1 + accountant |
| Standard | £10 | £12 | 3 |
| Professional | £20 | £24 | 5 |
| Premium | £25 | £30 | 10 |
| Elite | £85 | £99 | 10 |
| Ultimate | £165 | £199 | 15 |
Note which column is which, because this is where most write-ups go wrong: £12, £24, £30, £99 and £199 are the monthly rates. The annual-billing figures are £10, £20, £25, £85 and £165. Guides that present the monthly numbers as annual overstate every tier, and Premium gets quoted at £36 by some, which matches neither column.
Because pricing is per organisation, adding users inside your tier’s cap does not increase the bill — unlike a CRM seat, an extra bookkeeper on Standard costs nothing until you pass three.
The Free Plan: What It Actually Includes
The limits Zoho publishes:
- 1 user plus 1 accountant — the accountant does not consume your seat
- 1,000 invoices a year
- 1,000 expenses a year
- 3 projects
- 50 receipt autoscans a month
- 5 scheduled reports
- No add-ons except CT600 and Final Accounts
- MTD for VAT filing
- MTD for Income Tax, including quarterly updates and the final return
That accountant allowance matters, because the usual criticism of the free plan is that you cannot give your accountant access without paying. You can. What you cannot do is add a business partner or a second person doing the books.
Where the £50,000 Figure Comes From
Almost certainly a mix-up with MTD. £50,000 is the qualifying income threshold at which MTD for Income Tax became mandatory on 6 April 2026 — nothing to do with Zoho’s plan eligibility. Since the free plan’s selling point is MTD support, the two have been welded together somewhere along the line and the £35,000 version appears to be a separate guess.
If a turnover condition does apply, it is not published where you sign up. Ask Zoho directly if revenue is the deciding factor for you, but do not assume you are excluded.
What the Free Plan Genuinely Withholds
- No multi-currency. Invoice anyone in euros or dollars and you need a paid plan.
- No workflow automation. Recurring invoices, automated payment reminders and custom rules all require Standard.
- One working user. Partner or bookkeeper means upgrading.
- No purchase orders.
- Restricted integrations and portals.
- Volume caps. A thousand invoices a year is generous for a sole trader and tight for anything transactional.
The practical risk is timing. Take on a partner mid-year, or land an overseas client, and you are upgrading in a hurry. Budget with headroom.
The Paid Ladder
Standard — £10 a year, £12 monthly
The natural first step: up to 3 users, unlimited invoices, recurring invoices and expenses, automated payment reminders, basic workflow rules, multiple bank feeds, client portal, custom invoice templates.
Right for a sole trader who has taken on a part-time bookkeeper, or a small limited company with straightforward finances. At £10 on annual billing it is the cheapest meaningful accounting plan in this market.
Professional — £20 a year, £24 monthly
Up to 5 users, plus sales and purchase orders, vendor credits, more advanced automation, project billing and time tracking, and bills management for supplier invoices.
The tier for a business that buys stock, bills projects by the hour, or deals with suppliers as seriously as customers. A small agency, trade business or consultancy usually lands here.
Premium — £25 a year, £30 monthly
Up to 10 users, budgeting, a custom domain for your client portal, Zoho Sign for e-signatures on quotes and contracts, advanced and custom reporting, batch payments.
Note the step from Professional is only £5 a month on annual billing, not the £12 jump the misquoted figures imply. That makes Premium far easier to justify than it usually looks — ten users and custom reporting for £25 is the best-value tier in the range.
Elite — £85 a year, £99 monthly
Still 10 users, so this jump is entirely about features: advanced inventory with multiple warehouses, serial and batch tracking, landed costs, and more sophisticated purchase management.
If you run e-commerce, wholesale, or anything where stock is the business, this is the tier that makes Zoho Books useful for it. Below Elite, inventory is basic.
Ultimate — £165 a year, £199 monthly
15 users, Zoho Analytics bundled in, higher automation limits, premium support.
A real spend, and most small businesses do not need it. It suits larger SMEs with serious reporting requirements or genuinely fifteen people in the system.
The Upgrade Triggers
Multi-currency. The single most common one. Invoice one client in euros and the free plan is out — this catches UK freelancers with overseas clients who assumed it would cope.
A second working user. The free plan’s one-user limit, though remember your accountant is already included.
Workflow automation. Manually chasing payments gets old fast, and Standard at £10 fixes it.
Purchase orders. Free and Standard do without; Professional adds them.
Real inventory. Straight to Elite. Trying to run warehouses on a lower tier will not work.
Annual Versus Monthly
Annual billing saves roughly 14% to 17% depending on tier: 16.7% on Standard, Professional and Premium, 14.1% on Elite, 17.1% on Ultimate.
In cash terms that is £24 a year on Standard and £408 on Ultimate. Use the trial and a month or two of monthly billing first if you are unsure, then switch — the saving is real but not so large that locking in early is worth the risk of picking the wrong tier.
MTD: Where Things Actually Stand
Zoho Books is HMRC-recognised for Making Tax Digital for Income Tax, and supports digital records, quarterly updates and the final return — from the free plan.
The regime itself is live, which most guidance still gets wrong:
- £50,000 qualifying income — mandatory since 6 April 2026
- £30,000 — from April 2027
- £20,000 — from April 2028, confirmed rather than merely 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 a Final Declaration by 31 January.
One practical catch worth knowing before you rely on this: Zoho’s MTD for Income Tax feature is enabled on request rather than switched on by default — you contact Zoho’s UK support. Sort that out ahead of a deadline, not during one. Our Zoho Books and CRM integration guide covers it.
And MTD for VAT already applies to all VAT-registered businesses. Zoho Books files those returns on the free plan, which is unusual.
How It Compares to Xero and QuickBooks
Zoho Books is meaningfully cheaper at equivalent feature levels, and neither competitor offers anything like the free plan.
| Entry paid tier | Monthly, ex-VAT |
|---|---|
| Zoho Books Standard | £10 (annual) / £12 |
| QuickBooks Sole Trader Plus | £10 — but no VAT returns |
| QuickBooks Simple Start | £16 |
| Xero Ignite | £18 |
Two things to note. QuickBooks’ £10 tier cannot file VAT, so the real like-for-like entry is Simple Start at £16. And Xero raised its UK prices on 1 September 2026 — Ignite is now £18, not the £16 still quoted widely. Our Xero pricing guide and QuickBooks pricing guide have the full ladders, and the payroll comparison covers how those two handle employees.
The honest caveat on Zoho: UK accountants are more familiar with Xero and QuickBooks. If your accountant has a strong preference, that familiarity is worth something, and it is a conversation to have before you commit.
FAQ
Is the Zoho Books free plan really free forever?
Yes, it is a permanent plan rather than a trial. The published limits are one user plus an accountant, 1,000 invoices and 1,000 expenses a year, three projects and 50 receipt scans a month.
Is there a turnover limit on the free plan?
Not one Zoho publishes on its UK pricing page. Figures of £50,000 and £35,000 circulate; the £50,000 is almost certainly a confusion with the MTD for Income Tax threshold. Ask Zoho if turnover is your deciding factor.
Can my accountant access the free plan?
Yes. The free plan includes one user plus an accountant, and the accountant does not use up your seat.
Does the free plan handle VAT?
Yes — MTD for VAT filing is included on the free plan, which is unusual. QuickBooks requires Simple Start at £16 before it will file a VAT return.
Does the free plan handle MTD for Income Tax?
Yes, including quarterly updates and the final return. Note the feature is enabled on request through Zoho’s UK support rather than being on by default.
What does Zoho Books cost on annual billing?
£10 for Standard, £20 Professional, £25 Premium, £85 Elite and £165 Ultimate, per month per organisation. The £12, £24, £30, £99 and £199 figures are the monthly rates.
Is pricing per user?
No, per organisation. Each tier caps how many users you can have — 3, 5, 10, 10 and 15 — but the price does not multiply by headcount within that cap.
Can a limited company use it?
Yes. Sole traders get the most from the MTD and Self Assessment features, while a limited company will usually want a paid tier, since one working user is restrictive. Check your accountant is comfortable with the platform first.
Zoho Books Pricing UK: The Bottom Line
Free if you are a sole trader within the volume limits — and note there is no published turnover cap, your accountant comes included, and it files both MTD for VAT and MTD for Income Tax. For compliance alone that is a genuinely strong position at zero cost.
Standard at £10 the moment you need a second working user, automation, or multi-currency. The cheapest meaningful accounting plan going.
Professional at £20 for purchase orders, project billing and five users.
Premium at £25 is the value pick of the paid range, because the step from Professional is only £5 a month on annual billing for ten users and custom reporting.
Elite at £85 only for real inventory, and Ultimate at £165 only if you genuinely need Zoho Analytics or fifteen seats.
Get the billing column right when you budget, confirm the MTD for Income Tax feature is switched on before a quarterly deadline, and have the conversation with your accountant about platform familiarity before you move your books.
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.