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AI bookkeeping tools for heating engineers in the UK

Heat pump work brings bookkeeping questions boiler work doesn't: a £7,500 Boiler Upgrade Scheme grant that reaches you from Ofgem rather than the customer, zero-rated VAT on the installation, and large equipment purchases before you're paid. Getting the grant and the customer's share into the books correctly matters for both VAT and cash flow.

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.

Boiler Upgrade Scheme grants

The installer applies to Ofgem on the customer's behalf, and the grant is taken off the amount the customer pays; it's shown on the quotation and invoice (GOV.UK). Set up your invoice so the full price, the grant and the balance are clear, and track the grant as money due until it's paid. Ask your accountant how to treat it in your accounts.

VAT on heat pumps

Installing heat pumps and other energy-saving materials in homes is zero-rated until 31 March 2027, then 5% (GOV.UK). If you also service gas boilers at 20%, your software has to handle both rates. Xero and Sage support Making Tax Digital for VAT (checked 14 and 15 October 2026).

Equipment and cash flow

A heat pump unit costs you a lot before the job is paid. Record supplier invoices against the job, and use the payment terms guide to plan deposits. If turnover passed £50,000 in 2024 to 2025, Making Tax Digital for Income Tax applies (GOV.UK).

The options, with prices

Tool	Price and free plan	UK notes and source
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
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
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?
Can an invoice show the grant deduction and a 0% VAT line clearly?
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 heating business. Here are this quarter's jobs, supplier invoices and payments: [paste]. For each heat pump job, list the full price, the Boiler Upgrade Scheme grant, the customer's balance and what's still unpaid. Separate 0% and 20% VAT work. 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. Gas safety, boiler and heat pump prompts: ChatGPT prompts for plumbers. 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

Who applies for the Boiler Upgrade Scheme grant?

The installer applies to Ofgem on the customer's behalf, and the grant is taken off the customer's bill, according to GOV.UK.

What VAT rate applies to heat pump installation?

In homes, 0% until 31 March 2027 and then 5%, according to HMRC's VAT Notice 708/6.

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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