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AI bookkeeping tools for builders in the UK

Builders' bookkeeping is complicated by CIS on both sides: deductions taken from your pay as a subcontractor, deductions you make from your own subbies as a contractor, plus the VAT reverse charge on work for other construction businesses. Software that knows about CIS saves mistakes that otherwise surface at the end of the tax year.

Prices were re-checked on each provider's own page; the date is next to each one. Rules and figures from GOV.UK are linked where they're used.

CIS deductions you've suffered

If contractors deduct 20% from your labour, keep every monthly deduction statement; the tax is set against your bill through Self Assessment. Our CIS refund guide and CIS calculator explain the numbers. QuickBooks includes CIS calculation and submission on all plans; Sage lists CIS support (checked 14 and 15 October 2026).

Reverse charge and VAT

When you supply most construction services to another VAT and CIS-registered business, the customer accounts for the VAT; it doesn't apply to private homeowners (GOV.UK). Your software needs a reverse charge VAT code so invoices and returns come out right.

Making Tax Digital

Sole traders with turnover over £50,000 in 2024 to 2025 should be using Making Tax Digital for Income Tax from 6 April 2026 (GOV.UK). Turnover means gross income before expenses. Read our Making Tax Digital guide.

The options, with prices

Tool	Price and free plan	UK notes and source
QuickBooks Cloud accounting with invoicing, expenses and VAT, plus Intuit Intelligence AI features (some in beta).	Plans: Sole Trader Plus, Simple Start, Essentials, Plus and Advanced, each with a 30-day free trial. All include CIS calculation and submission; VAT submission isn't in Sole Trader Plus. Prices load dynamically on the UK pricing page, so check the current figure there. No free plan; 30-day free trial.	UK pricing in pounds. Source, checked 15 October 2026
Sage Accounting UK accounting and payroll software with the Sage Copilot AI assistant included in every plan.	Start: £20 a month. Standard: £43 a month. All excl. VAT. Offer when checked: 90% off for 6 months. No free plan; introductory discount instead.	UK company, pounds, Making Tax Digital and CIS support. Source, checked 14 October 2026
Xero Cloud accounting for invoices, bank feeds, VAT and payroll, with AI-assisted features.	Ignite: £18 a month. Grow: £39. Comprehensive: £55. Ultimate: £70 (all excl. VAT). When checked, the first 6 months were 90% off. Payroll £1.50 per person. No free plan; a free trial and introductory discounts are offered.	UK pricing in pounds; Making Tax Digital compatible. Source, checked 15 October 2026
FreeAgent UK accounting software for sole traders, partnerships and small companies.	Sole traders: £19 a month. Limited companies: £33 a month or £330 a year. All excl. VAT, with 50% off the first six months when checked. Free with a NatWest, RBS or Ulster Bank business account, or Mettle (conditions apply). Free for eligible NatWest, RBS, Ulster Bank and Mettle customers; otherwise a 30-day free trial.	UK company, pounds. Source, checked 15 October 2026
Zoho Books Accounting software with a free plan for very small businesses and paid UK plans.	Free: £0. Standard: £12 a month (£10 billed annually). Professional: £24 (£20). Premium: £30 (£25). Per organisation. Free plan for sole traders and micro businesses.	UK pricing in pounds. Source, checked 15 October 2026

What to check before you choose

Is it on HMRC's list of software that works with Making Tax Digital for Income Tax? Check HMRC's finder, not only the provider's page.
Does it read receipts from a photo and match them to your bank feed?
Does it handle CIS both as contractor and subcontractor, plus the reverse charge?
Introductory discounts: budget for the full price (FreeAgent, Xero and Sage all had offers when checked on 14 and 15 October 2026).
Can your accountant log in?

A prompt to start with

Paste this into ChatGPT or Claude, filling in the brackets:

You're helping me with bookkeeping for my building business. Here are this month's sales invoices, purchase receipts and CIS statements: [paste]. List the CIS deducted from me by each contractor, the CIS I deducted from each subcontractor, and any invoices that should use the domestic reverse charge. Flag anything that doesn't add up. Don't give tax advice.

Free tools

Price a job with the quote and VAT calculator (20%, 5%, 0% and reverse charge), or work out your day rate (see how much to charge per hour). Near the VAT threshold? Use the VAT threshold checker and read should I register for VAT? Already registered? See if the VAT Flat Rate Scheme calculator would save you money. Party Wall, building control and variation prompts: ChatGPT prompts for builders. Estimate your tax bill with the self-employed tax calculator, see what you owe in January and July with the payments on account calculator, or see whether a company would leave you better off with the sole trader vs limited company calculator. Over £50,000 turnover? Making Tax Digital for Income Tax has applied since 6 April 2026; check your date with the Making Tax Digital checker.

Questions

Do I need special software for CIS?

Not necessarily, but software that calculates and submits CIS returns reduces errors. QuickBooks includes CIS on all plans (checked 15 October 2026).

Does the reverse charge apply to homeowners?

No. GOV.UK says the domestic reverse charge doesn't apply to private domestic customers.

Are these prices in pounds?

Not all. Where a provider only publishes US dollar prices we show dollars, so check the price in pounds at checkout.

Do you get paid if I sign up?

Some links may become affiliate links, and we'll label them when they do. It doesn't change what we list. See how we make money.

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