Guides · Updated 2026-10-17
FreshBooks review for UK small businesses: prices, VAT and catches
FreshBooks is online invoicing and accounting software. You send quotes and invoices, take card payments, track expenses and time, and file VAT returns to HMRC from the same account. This review is for UK tradespeople, sole traders and small service businesses deciding whether it's worth paying for. Prices and features come from FreshBooks' UK pricing page, read on 17 October 2026.
We don't use FreshBooks ourselves, so this is a review of what FreshBooks publishes and how that fits a UK trade, not a long-term test. We've set out the downsides as plainly as the good points.
Affiliate note: we've applied to join FreshBooks' affiliate programme. If we're accepted, the FreshBooks links on this page may become affiliate links, which could earn us a commission at no extra cost to you. It won't change what this review says. See how we make money.
The short version
- No free plan. There's a 30-day free trial with no card needed, then a paid plan.
- UK prices in pounds: Lite £16 a month, Plus £30 and Premium £42, paying monthly. Select is priced on request.
- Offer when checked: 50% off for the first 3 months (£8, £15 and £21 a month).
- The big catch for trades is the client limit: Lite lets you bill 5 clients and Plus 50. Only Premium and Select are unlimited.
- VAT returns: every plan includes VAT return filing for Making Tax Digital, according to the comparison table.
- Best for: a freelancer or small service business with a handful of regular clients who wants tidy invoices, payment reminders and time tracking.
What it costs
From FreshBooks' UK pricing page, 17 October 2026, in pounds:
| Plan | Paying monthly | Offer when checked | Billed yearly (10% off) | Billable clients |
|---|---|---|---|---|
| Lite | £16 a month | £8 a month for 3 months | £172.80 a year | 5 |
| Plus | £30 a month | £15 a month for 3 months | £324 a year | 50 |
| Premium | £42 a month | £21 a month for 3 months | £453.60 a year | Unlimited |
| Select | Priced on request | Unlimited |
Add-ons: extra team members are £8 a month per person, and Advanced Payments (taking cards in person or over the phone, and storing card details) is £15 a month unless you're on Select.
The pricing page doesn't say whether these prices include VAT, so check the total at checkout before you subscribe. Card and bank payment fees are separate from the plan price.
How the client limit works
This is the part most likely to catch out a tradesperson. FreshBooks counts billable clients, and its FAQ says the limit covers both active and archived clients. You can delete a client to free up a space, and their invoices stay accessible.
A consultant billing 4 regular clients is fine on Lite. A plumber, electrician or cleaner who invoices dozens of different households a year will hit Lite's limit of 5 within weeks and Plus's 50 within months. For most trades, the realistic plan is Premium at £42 a month, or deleting old clients regularly.
What each plan includes
Every plan, from the comparison table on 17 October 2026:
- unlimited quotes and invoices, recurring invoices, deposits and checkout links
- automated late payment reminders and scheduled late fees
- online card payments and direct debit (BACS)
- automatic bank import, mileage tracking and unlimited time tracking
- tax-time reports and VAT return filing for Making Tax Digital
Plus adds: e-signatures on quotes, proposals, retainers, double-entry accounting reports, bank reconciliation, accountant access and automatic receipt capture.
Premium adds: unlimited clients, customised email templates, automatic bill capture, accounts payable and project profitability.
Select adds: removing FreshBooks branding from client emails, lower card fees, card payments in person or over the phone, and data migration help.
Bank reconciliation and accountant access starting on Plus matters: if your accountant does your year-end, Lite is probably too limited.
Late fees in an invoicing app are whatever you set. For business customers the law sets its own figure: simple interest at 8% plus the base rate, worked out per day. See the interest per day calculator for the sums.
VAT, MTD and CIS
- MTD for VAT: if you're VAT-registered you must keep digital records and file through compatible software. FreshBooks lists VAT return filing for MTD on every plan. See should I register for VAT?
- MTD for Income Tax: sole traders with qualifying income over £50,000 have had to use it since 6 April 2026, with lower thresholds in 2027 and 2028. FreshBooks' pricing page doesn't mention it, so check HMRC's list of software that works with MTD for Income Tax before relying on it. Our MTD for Income Tax guide has the dates.
- CIS: the UK pricing page doesn't mention the Construction Industry Scheme. If you're a CIS contractor or subcontractor, ask FreshBooks how it handles deductions before you commit, or look at QuickBooks, which lists CIS on all its UK plans. See CIS explained.
The catches
- Client limits on Lite and Plus, as above. This rules Lite out for most trades.
- No free plan. Zoho Books has a free plan for very small businesses, and FreeAgent is free with some business bank accounts.
- The offer price ends after 3 months. Budget for the full monthly price.
- Accountant access and bank reconciliation need Plus.
- Extra users cost £8 a month each.
FreshBooks against the alternatives
| Tool | Free option | Starting price we found |
|---|---|---|
| FreshBooks | 30-day trial only | Lite £16 a month (5 clients) |
| Zoho Books | Free plan | Standard £12 a month (£10 billed annually) |
| FreeAgent | Free with NatWest, RBS, Ulster Bank or Mettle (conditions apply) | £19 a month for sole traders, excl. VAT |
| Xero | No free plan; 90% off the first 6 months when checked | Ignite £18 a month, excl. VAT |
| Sage | No free plan; 90% off for 6 months when checked | Start £20 a month, excl. VAT |
| QuickBooks | 30-day trial | Check current pricing on QuickBooks' UK site |
Alternative prices were read on 15 October 2026 on each provider's own page; see each tool page for sources and current offers. Head to head: Xero vs QuickBooks, Xero vs FreeAgent and FreeAgent vs Zoho Books. If you only send a few invoices, our free invoicing apps guide may save you a subscription, and our best accounting software page compares the rest.
Who it suits
- Suits: freelancers, consultants, designers, tutors and small agencies with a small number of repeat clients, who bill for time and want polished invoices and automatic reminders.
- Less good for: trades with lots of one-off customers (the client limit), CIS contractors (check first), and anyone who wants a free plan.
Trying it
Try it: FreshBooks UK offers a 30-day free trial with no card needed. Add a few real clients and send one invoice to yourself before you pay.
AI can help with the wording around your invoices. Try this in ChatGPT or Claude:
Write a polite payment reminder for invoice [number] for [job] at [address], due on [date], amount [£]. I'm a [trade] in [town]. Firm but friendly, British English, under 100 words, with my bank details placeholder and a line thanking them for the work.
Check every figure before you send it. For more, see how to chase a late payment.
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FAQ
Does FreshBooks have a free plan in the UK?
No. FreshBooks offers a 30-day free trial with no card needed, then a paid plan from £16 a month (Lite, paying monthly). When we checked on 17 October 2026, the first 3 months were 50% off.
How much is FreshBooks a month in the UK?
Lite is £16 a month, Plus £30 and Premium £42, paying monthly. Paying yearly gives 10% off: £172.80, £324 and £453.60 a year. Select is priced on request. Checked on FreshBooks' UK pricing page on 17 October 2026.
Can FreshBooks file VAT returns to HMRC?
Yes. FreshBooks' UK comparison table lists VAT return filing for Making Tax Digital on every plan, including Lite.
Is FreshBooks good for tradespeople?
It can work, but check the client limit first. Lite allows 5 billable clients and Plus 50, counting archived clients, so a trade with many one-off customers will usually need Premium at £42 a month. CIS isn't mentioned on the UK pricing page.
Do you earn money if I sign up?
Not at the moment. We've applied to FreshBooks' affiliate programme; if we're accepted, links on this page may earn us a commission at no extra cost to you. See how we make money.