Best Accounting Software for Limited Company Directors 2026

Bottom line: From 31 March 2026, HMRC's free CT600 filing service is gone. Every UK limited company now requires commercial accounting software to file their corporation tax return. If you haven't chosen software yet, you're already behind. Here's the director-focused comparison.

The March 2026 change that affects every limited company

HMRC quietly closed its free online CT600 filing service on 31 March 2026. This service had allowed directors to file corporation tax returns directly through the government gateway at no cost. From April 2026, commercial software is mandatory for all CT600 filings. There are no exceptions for small companies, dormant companies, or solo directors.

This matters if you're one of the directors who was managing accounts manually or relying on a spreadsheet and the free filing tool. You now need to choose and pay for accounting software — and the choice you make affects how you handle payroll, VAT, MTD, and your accountant relationship for years ahead.

What solo directors need from accounting software

Most "best accounting software" lists are written for SMEs with multiple employees, complex supply chains, and dedicated finance teams. Solo directors have a very different set of requirements:

• CT600 filing — the non-negotiable now that HMRC's free service is closed
• Director payroll (RTI) — running your own single-director payroll and filing Real Time Information with HMRC
• Dividend tracking — recording dividend declarations and producing dividend vouchers
• MTD for VAT — if VAT registered, digital submission is mandatory
• Self Assessment prep — producing the data your accountant needs for your personal SA return
• Companies House integration — some software files confirmation statements or annual accounts directly

What you don't need: complex multi-user inventory management, project profitability tracking across 50 cost centres, or enterprise-grade approval workflows. The right software for a solo director is lean, HMRC-compliant, and easy to run alongside actual client work.

The four main options compared

FreeAgent — best overall for solo directors

FreeAgent was built specifically for freelancers and small limited companies — it shows. The interface is clean, the tax estimation is accurate, and it produces director-specific features like dividend vouchers, self-assessment summaries, and a real-time CT liability estimate as you go.

The CT600 filing module is included in the standard plan. Payroll for a single director is straightforward. MTD for VAT is handled automatically. Many UK accountants use FreeAgent as their preferred client platform — which means your accountant relationship is smoother if they already work with it.

Cost: From £19/month (plus VAT) on the solo plan. NatWest, RBS, and Mettle business bank account holders get FreeAgent free.

Best for: Solo directors who want a clean, director-specific experience and potentially free access via their bank.

Xero — best for growth and accountant collaboration

Xero is the most widely used accounting platform among UK accountants. If you use an external accountant, there's a good chance they'll recommend Xero simply because it makes collaboration easier — shared access, real-time data, and no file exchanges.

For a solo director, Xero is feature-rich to the point of overkill — but the extra features don't get in the way, and the payroll module handles director-only payroll well. CT600 filing requires the more expensive plans or an accountant filing on your behalf.

Cost: From £15/month (Starter plan, limited transactions) to £36/month (Standard). CT600 filing often requires the Standard plan or above.

Best for: Directors who use an accountant and want a shared, professional platform that their accountant already knows.

QuickBooks — best for self-managed directors who want control

QuickBooks offers strong expense categorisation, automated bank feeds, and clear year-end reporting. The Simple Start plan is competitively priced for a solo director. The interface is modern and the mobile app is genuinely useful for capturing expenses on the go.

CT600 filing is available but less integrated than FreeAgent. Payroll is a separate add-on. For a director managing their own bookkeeping without an accountant, QuickBooks gives good visibility into cash flow and tax positions.

Cost: From £14/month (Simple Start). Payroll add-on from £4/month.

Best for: Directors who manage their own books and want strong expense and cash flow tools at a competitive price.

Crunch — best for directors who want an accountant included

Crunch is an online accountancy service — not just software. The subscription includes a dedicated accountant, year-end accounts filing, CT600 submission, payroll, self-assessment, and VAT returns. If you want to hand off the compliance entirely and just use the software to record transactions, Crunch handles everything else.

The trade-off is cost — Crunch is more expensive than pure software. But for directors who are time-poor or uncomfortable with tax administration, the all-in price is often better value than software plus an accountant billed separately.

Cost: From approximately £69.50/month (plus VAT) for the standard limited company package.

Best for: Directors who want accountancy included and are willing to pay a premium for full compliance management.

Head-to-head comparison

Our verdict by director type

• Solo director, no accountant, wants simplicity: FreeAgent. The dividend voucher feature alone justifies it for sole directors — and the free option via NatWest/Mettle makes it the clear choice if you bank with them.
• Director who uses an external accountant: Xero or FreeAgent, depending on what your accountant recommends. Ask them before you subscribe — shared access to the same platform saves everyone time.
• Director who wants to hand off compliance entirely: Crunch. More expensive, but the all-in price competes with software + accountant combined.
• Director managing their own books, cost-sensitive: QuickBooks Simple Start with the payroll add-on.