For UK sole traders comparing Cuppa vs KashFlow, the core difference is scope.
Cuppa is built for one thing: simple sole-trader bookkeeping and MTD compliance. KashFlow (now IRIS KashFlow) is a full accounting platform covering invoicing, payroll, VAT, and bank reconciliation for businesses of varying sizes. Sole traders can use it, but they are not the primary audience.
If your bookkeeping is straightforward, paying more for features you will never use is a hard case to make. If your business is growing and you need payroll, unlimited invoicing, or multi-user access, KashFlow has more room to expand.
Key Takeaways
- Cuppa is designed exclusively for sole traders. KashFlow targets small to medium businesses including sole traders.
- Cuppa is cheaper: free plan at £0, Pro at £45/year. KashFlow Starter costs £90/year + VAT (after intro pricing).
- KashFlow includes invoicing, payroll (up to 5 employees), and VAT. Cuppa is simpler and more focused.
- Both have 14-day free trials.
Choose Cuppa or KashFlow?
Choose Cuppa if:
- You want the simplest possible sole-trader MTD workflow
- Cost is a significant factor
- You do not need payroll, unlimited invoices, or accountant multi-user access
- You want a tool designed specifically for sole traders
Choose KashFlow if:
- You need payroll for employees (up to 5 on Starter plan)
- You send more than 10 invoices per month or need unlimited invoicing (Business plan)
- Your business is growing and you want a platform that scales
- You are VAT-registered and want VAT returns included
Neither is ideal if:
- You need complex multi-entity accounting or project management
- You run a business that requires advanced reporting or financial forecasting
Cuppa vs KashFlow at a Glance
| Criteria | Cuppa | KashFlow |
|---|---|---|
| Product style | Sole-trader-focused MTD app | Full accounting platform |
| Target user | UK sole traders | Sole traders, small businesses |
| Setup effort | Very low | Medium |
| Free plan | Yes (£0/forever) | No (14-day free trial only) |
| Paid plan | Pro: £4.50/month or £45/year | Starter: £12.50/month or £90/year + VAT |
| HMRC / MTD fit | HMRC-recognised | MTD ITSA solution (ahead of April 2026) |
| Invoice limit | Unlimited (Pro) | 10/month (Starter), unlimited (Business) |
| Bank reconciliation | Bank imports | Up to 25/month (Starter), unlimited (Business) |
| Payroll | No | Up to 5 employees (all plans) |
| VAT returns | No | Yes |
| Multi-user | No | Yes (Business plan) |
| Stock control | No | Yes |
| Free trial | 14-day | 14-day |
| Best fit | Simple sole-trader MTD | Small businesses needing full accounting |
Pricing and Value
Advertised UK pricing (last checked: 6 March 2026):
| Plan | Cuppa | KashFlow |
|---|---|---|
| Free plan | Free: £0/forever | No free plan |
| Entry plan (monthly) | Pro: £4.50/month | Starter: £12.50/month (+ VAT) |
| Entry plan (annual) | Pro: £45/year | Starter: £90/year + VAT (~£108/year inc VAT) |
| Higher plan (monthly) | N/A | Business: £25.50/month (+ VAT) |
| Introductory offer | 14-day free trial | 90% off for 6 months (new customers) |
Notes:
- KashFlow prices are listed excluding VAT. Adding 20% VAT: Starter is effectively £108/year, Business is £198/year.
- KashFlow's intro pricing (90% off for 6 months) significantly reduces initial cost but should not be compared to full-year pricing.
- Cuppa's free plan is not a trial. It is a permanent free plan with no time limit.
- Always verify before purchasing: Cuppa pricing and KashFlow pricing.
For a sole trader with no payroll and straightforward bookkeeping needs, Cuppa Pro at £45/year is roughly half the cost of KashFlow Starter at ~£108/year inc VAT.
MTD Workflow Fit
Cuppa is built around the MTD quarterly workflow. Record income and expenses, see a live tax estimate, submit quarterly to HMRC when the deadline arrives. Everything in the product is designed around that cycle.
KashFlow is developing an end-to-end MTD ITSA solution ahead of the April 2026 deadline. Its platform covers quarterly submissions, EOPS, and final declarations for unincorporated businesses and landlords. MTD is one feature among many in a broader accounting suite.
For sole traders whose only goal is MTD compliance, a focused sole-trader tool typically produces a simpler, more consistent weekly workflow than navigating a full accounting platform.
Reference: HMRC MTD for Income Tax guidance.
Setup and Learning Curve
Cuppa setup takes minutes. Add business details, start recording transactions, see a tax estimate. Designed for non-accountants.
KashFlow has a fuller setup process: chart of accounts, bank account connection, invoice templates, payroll configuration (if needed), and VAT settings. The platform is well-documented with a large help library, but the initial setup takes longer and requires more accounting decisions.
KashFlow's Starter plan also imposes limits (10 invoices/month, 25 bank reconciliations/month) that a growing business may need to upgrade past quickly.
Switching From Spreadsheets
Cuppa:
- Import year-to-date income and expenses via CSV
- Set opening balances
- Start recording from today
KashFlow:
- Set up your chart of accounts
- Import opening balances
- Connect bank feed
- Configure invoice templates and payroll settings if needed
For a sole trader moving from a simple spreadsheet, KashFlow's setup is more involved than necessary. Cuppa is the faster path to a working MTD workflow.
Pros and Cons
Cuppa
Pros
- Free plan with HMRC MTD submissions
- Significantly cheaper at every paid tier
- Designed exclusively for sole traders
- Quick setup, minimal accounting jargon
- AI assistant on Pro plan
Cons
- No payroll
- No VAT returns
- Invoice limit not relevant (unlimited on Pro), but fewer total features
- No multi-user access
KashFlow
Pros
- Payroll included (up to 5 employees)
- VAT return filing
- Unlimited contacts, 50+ reports, stock control
- Mobile app
- Multi-user access (Business plan)
- Platform grows with your business
Cons
- More expensive for basic sole-trader use
- More setup and configuration required
- Invoice and reconciliation limits on Starter plan
- Broader platform means more navigation for simple use cases
Verdict: Which Should You Choose?
For UK sole traders with straightforward income and expenses and no payroll requirements, Cuppa is the better choice. It costs less, is faster to set up, and its workflow is designed specifically for sole-trader MTD compliance.
KashFlow is the right choice when your business has grown beyond sole-trader simplicity: when you need payroll, unlimited invoicing, VAT management, or accountant access, and you want all of that in one platform.
One-line rule: If you want simple, low-cost sole-trader MTD compliance, use Cuppa. If your business needs payroll and full accounting alongside MTD, KashFlow gives you more room to grow.
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