For a UK sole trader comparing Cuppa vs Clear Books, both tools have free plans and both are HMRC-recognised for Making Tax Digital.
The practical difference is focus. Cuppa is built specifically for sole-trader MTD compliance and gives more on the free plan. Clear Books is a broader UK accounting platform that covers sole traders, landlords, and small businesses, with more features at higher price points.
If simple sole-trader MTD compliance is your goal, Cuppa's free plan offers more out of the box. If you need accounting software that grows with a more complex business, Clear Books has more room to expand.
Key Takeaways
- Both tools offer a free plan that includes MTD quarterly submissions.
- Cuppa's free plan includes bank imports, mileage tracking, and multi-currency. Clear Books' free plan is more basic.
- Clear Books' paid Sole Trader plan costs £5/month + VAT (~£6/month inc VAT). Cuppa Pro is cheaper at £4.50/month.
- Clear Books covers landlords and small businesses. Cuppa focuses exclusively on sole traders.
Choose Cuppa or Clear Books?
Choose Cuppa if:
- You want the most complete free plan for sole-trader MTD bookkeeping
- 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 (MTD submissions, bank imports, mileage) | Yes (basic MTD updates, manual entry; no automated bank feeds) |
| Paid plan | Pro: £4.50/month or £45/year | Sole Trader: £5/month + VAT |
| HMRC / MTD fit | HMRC-recognised, quarterly MTD | HMRC-recognised, MTD VAT + ITSA |
| Automated bank feeds | Yes (free + Pro) | Paid plan only (£5/month + VAT) |
| Invoicing | Yes (Pro) | Yes (paid plans) |
| Landlord / property | No | Yes (Property plan: £5/month + VAT) |
| Payroll | No | Yes (business plans) |
| Free trial | 14-day (Pro) | 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/forever (bank imports, mileage, MTD) | Sole Trader Free: £0/month (basic MTD, manual entry; no automated bank feeds) |
| Paid plan (monthly) | Pro: £4.50/month | Sole Trader: £5/month + VAT (~£6/month inc VAT) |
| Paid plan (annual) | Pro: £45/year | No listed annual option for Sole Trader plan |
| Landlord/property | Not available | Property: £5/month + VAT |
| Free trial | 14-day free trial (Pro) | 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 bank imports, mileage, and multi-currency. Clear Books' free plan supports manual entry only; automated bank feeds require the paid plan.
- Always verify before purchasing: Cuppa pricing and Clear Books pricing.
Cuppa is cheaper at the paid tier: £4.50/month vs £6/month inc VAT for Clear Books. The more meaningful difference is in what the free plan includes.
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
- More complete free plan (includes bank imports, mileage, MTD submissions)
- Designed exclusively for sole traders
- Very quick setup, minimal learning curve
- Annual pricing saves 18% vs monthly
- AI assistant on Pro plan
Cons
- 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 more limited than Cuppa's free plan (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 more complete free plan and a workflow designed specifically for your use case. The free plan includes bank imports, mileage tracking, and HMRC quarterly submissions. The Pro plan at £45/year adds invoicing, AI assistant, and amendment support.
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, Cuppa's free plan offers more from day one. If you also have landlord income or expect your business to grow, Clear Books has more room to expand.
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