For a UK sole trader comparing Cuppa vs Clear Books, both tools are HMRC-recognised for Making Tax Digital, and both offer a free plan. Cuppa keeps things simple: bookkeeping is free, and filing with HMRC needs the low-cost Pro plan.
The practical difference is focus. Cuppa is built specifically for sole-trader MTD compliance, with a Pro plan at £6/month (£59/year) for filing and no other tiers or upsells. Clear Books is a broader UK accounting platform that covers sole traders, landlords, and small businesses, with a free tier and more features at higher price points.
If simple sole-trader MTD compliance is your goal, Cuppa gives you free bookkeeping and one flat low price for filing. If you need accounting software that grows with a more complex business, Clear Books has more room to expand.
Key Takeaways
- Both tools support MTD quarterly submissions to HMRC. Clear Books' free plan includes basic MTD updates; Cuppa's Free plan covers bookkeeping, with filing on the Pro plan.
- Cuppa's Free plan includes CSV import, mileage tracking, and multi-currency. Neither tool offers automated bank feeds for sole traders on the free/entry level, and Cuppa does not have bank feeds yet at all.
- Clear Books' paid Sole Trader plan costs £5/month + VAT (~£6/month inc VAT). Cuppa's Pro plan is cheaper at £6/month (£59/year).
- Clear Books covers landlords and small businesses. Cuppa focuses exclusively on sole traders.
Choose Cuppa or Clear Books?
Choose Cuppa if:
- You want free sole-trader bookkeeping and a simple, low-cost Pro plan for filing when you're ready
- You prefer a workflow designed exclusively for sole traders
- You do not need accountant practice features or multi-business management
- You want straightforward MTD compliance with minimal configuration
Choose Clear Books if:
- You also have property/landlord income to track
- You run a small business that may grow beyond sole-trader scope
- You want payroll functionality in the same platform
- You want accountant practice integration
Neither is ideal if:
- You need advanced project accounting or multi-currency payroll
- You want a mobile-first receipt scanning experience
Cuppa vs Clear Books at a Glance
| Criteria | Cuppa | Clear Books |
|---|---|---|
| Product style | Sole-trader-focused MTD app | Broad UK accounting platform |
| Target user | UK sole traders (self-employment) | Sole traders, landlords, small businesses |
| Setup effort | Very low | Low to medium |
| Free plan | Yes (bookkeeping, import, tax estimate; filing needs Pro at £6/mo or £59/yr) | Yes (basic MTD updates, manual entry; no automated bank feeds) |
| Paid plan | £6/month or £59/year (Pro) | Sole Trader: £5/month + VAT |
| HMRC / MTD fit | HMRC-recognised, quarterly MTD | HMRC-recognised, MTD VAT + ITSA |
| Automated bank feeds | No (not yet) | Paid plan only (£5/month + VAT) |
| Invoicing | Yes | Yes (paid plans) |
| Landlord / property | No | Yes (Property plan: £5/month + VAT) |
| Payroll | No | Yes (business plans) |
| Free trial | No | 30-day |
| Best fit | Simple sole-trader MTD compliance | Sole traders, landlords, growing businesses |
Pricing and Value
Advertised UK pricing (last checked: 6 March 2026):
| Plan | Cuppa | Clear Books |
|---|---|---|
| Free plan | Free: £0 (bookkeeping, import, tax estimate, forever) | Sole Trader Free: £0/month (basic MTD, manual entry; no automated bank feeds) |
| Paid plan (monthly) | £6/month (Pro, for HMRC filing) | Sole Trader: £5/month + VAT (~£6/month inc VAT) |
| Paid plan (annual) | £59/year (Pro) | No listed annual option for Sole Trader plan |
| Landlord/property | Not available | Property: £5/month + VAT |
| Free trial | No trial needed (Free plan available forever) | 30-day free trial |
Notes:
- Clear Books prices are listed excluding VAT. Adding 20% VAT brings the £5/month plan to £6/month in practice.
- Cuppa's Free plan includes CSV import, mileage, and multi-currency, but no automated bank feeds yet. The Pro plan adds HMRC filing. Clear Books' free plan supports manual entry only; automated bank feeds require its paid plan.
- Always verify before purchasing: Cuppa pricing and Clear Books pricing.
Cuppa is cheaper at the paid tier: £6/month vs £6/month inc VAT for Clear Books. Both tools offer a free plan; Cuppa's pitch is free bookkeeping plus one flat low price for filing.
MTD Workflow Fit
Both tools are HMRC-recognised for Making Tax Digital for Income Tax.
- Cuppa centres the entire product around the MTD workflow. Record income and expenses, track your tax estimate in real time, submit quarterly to HMRC. Everything is designed for this one workflow.
- Clear Books supports MTD as one feature among many. Its broader architecture (payroll, multi-business, accountant portal) means more navigation and settings for users who only need basic compliance.
For a sole trader whose only goal is staying on top of MTD requirements, Cuppa's focused approach typically requires fewer decisions on a weekly basis.
Reference: HMRC MTD for Income Tax guidance.
Setup and Learning Curve
Cuppa is designed for quick setup: add business details, start recording transactions, see a tax estimate immediately. Most sole traders are ready to submit their first quarterly update in the same session.
Clear Books has more initial configuration: choose your plan, set up your chart of accounts, connect automated bank feeds (paid plan only), configure invoicing templates. The setup process is more involved because the platform covers more scenarios.
If you are new to accounting software, the simpler setup in Cuppa reduces the risk of abandoning the tool before you have built a consistent habit.
Switching From Spreadsheets
Cuppa:
- Import year-to-date income and expenses via CSV
- Set opening balances
- Start recording new transactions from today
Clear Books:
- Import historical transactions (bank feeds on paid plans)
- Set up your chart of accounts
- Configure invoicing if needed
- Validate opening balances before first quarterly submission
Both tools work best when started at the beginning of a new tax quarter. For users coming from a basic spreadsheet, Cuppa requires fewer decisions to get started.
Pros and Cons
Cuppa
Pros
- Free bookkeeping (CSV import, mileage, tax estimate); Pro adds MTD submissions and invoicing
- Designed exclusively for sole traders
- Very quick setup, minimal learning curve
- Low flat Pro price: £6/month, and annual pricing saves 18% vs monthly
- AI categorisation and receipt scanning included (Pro)
Cons
- HMRC filing not included in the Free plan; needs Pro, and there's no free trial for Pro
- No automated bank feeds yet (CSV import only)
- No landlord/property income support
- No payroll
- No accountant practice portal
Clear Books
Pros
- Free plan includes basic MTD for Income Tax
- Supports landlords (Property plan)
- Payroll available on business plans
- 30-day free trial
- Grows with you as complexity increases
- Accountant and practice integration
Cons
- Free plan is fairly basic (no automated bank feeds, no mileage tracking)
- Broader platform means more navigation for simple sole-trader use cases
- VAT on all paid plans
Verdict: Which Should You Choose?
For straightforward sole-trader MTD compliance, Cuppa offers a workflow designed specifically for your use case. CSV import, mileage tracking, and the tax estimate are free forever; the Pro plan at £6/month (or £59/year) adds invoicing, AI categorisation and receipt scanning, and HMRC quarterly submissions, with no other tiers or upsells. Note it has no automated bank feeds yet.
Clear Books makes more sense if you have property income alongside your self-employment, if you want payroll features, or if you run a business that may grow beyond sole-trader scope. Its breadth is an asset for those situations.
One-line rule: If you are a straightforward sole trader who wants free bookkeeping and one low flat price for filing, Cuppa keeps it simple. If you have landlord income or expect your business to grow, Clear Books has more room to expand.
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