Sage Sole Trader
Sage's cloud MTD Income Tax product for non-VAT registered sole traders; free tier (single user, 5 invoices/month, 1 bank account, MTD ready), paid Sole Trader tier £7/mo + VAT (90% off first 6 months at audit).
by Sage Group
A genuinely free MTD Income Tax option for non-VAT registered sole traders with simple affairs, from an established UK brand. The 5-invoices-per-month and 25-auto-categorised-transactions caps on the free plan are the practical constraints; if you outgrow them, Sole Trader at £7/mo + VAT is a low step up. VAT-registered users should look at Sage Accounting (from £20/mo + VAT) instead. Landlords with more than a couple of simple properties are better served by property-first tools (Hammock, Landlord Studio) or a general accounting product with per-property tracking.
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Overview
Sage Sole Trader (previously called Sage Individual) is Sage's cloud MTD Income Tax product for non-VAT registered sole traders. Per sage.com/en-gb/products/sage-sole-trader/ captured via headless browser on 2026-09-30, there are two tiers on the 'Not VAT registered' plans view: Sole Trader Free at £0 (permanent, no card, no billing) and Sole Trader at £0.70/mo for the first 6 months under a 90%-off promo, then £7/mo excluding VAT. Sole Trader Free is marked 'Making Tax Digital ready' and produces the Self Assessment SA103S summary; Sole Trader adds CIS management, receipt capture, multiple bank accounts, 10GB document storage and unlimited sales invoices. Sage directs VAT-registered users to Sage Accounting (a separate product); Sage 50 is Sage's desktop-rooted product with a much higher price point. For MTD IT for landlords specifically, Sage's community-hub note directs users to Sage Sole Trader or Sage Accounting rather than Sage 50.
Free (non-VAT sole traders)
Sole Trader Free is Sage's permanent free plan for non-VAT registered sole traders. Per sage.com (captured 2026-09-30): single user, 25 auto-categorised transactions, 1 bank account, up to 5 sales invoices per month, records receipts manually, Self Assessment SA103S summary. Marked 'Making Tax Digital ready' on the vendor page's plans grid. Sage directs users who need VAT filing to Sage Accounting (a different product); this entry is Income-Tax-only.
+Pros
- ✓Free tier files MTD Income Tax for non-VAT registered sole traders per the vendor's own plans grid
- ✓Established UK brand ('40+ years of experience' per the vendor page), wide accountant familiarity
- ✓Paid Sole Trader tier is £7/mo + VAT regular (£0.70/mo for the first 6 months under 90%-off promo), a modest step up from the free plan for CIS, receipt capture and multiple bank accounts
- ✓No credit card required for the free plan
−Cons
- ✕Free plan is capped at 5 sales invoices per month and 25 auto-categorised transactions; heavier users need the paid Sole Trader tier
- ✕Single user on both tiers; no multi-user or partnership support
- ✕VAT-registered users need Sage Accounting instead (separate product, from £20/mo + VAT)
- ✕Landlord-first workflows (per-property P&L, deposit ringfencing) are not the product's shape; Sage does list 'Record landlord income and expenses' on the free tier for simple landlord affairs
If Sage Sole Traderisn't quite right
Closest alternatives worth a look before you commit.
Genuinely free tier for sole traders and landlords with straightforward affairs; paid plans from £10/mo (annual billing).
Free tier from an established UK accounting brand; MTD Income Tax quarterly updates + Final Declaration on the free tier, MTD VAT is paid-only.
HMRC-recognised MTD Income Tax software for spreadsheet users; free for individuals with no card and no time limit.
Sage Sole Trader, frequently asked questions
Is Sage Sole Trader free?+
Yes, on the Sole Trader Free plan. Per sage.com (captured 2026-09-30): £0, single user, 5 sales invoices per month, 25 auto-categorised transactions, 1 bank account, Making Tax Digital ready, Self Assessment SA103S summary. No credit card required.
What is the difference between Sage Sole Trader Free and Sole Trader (paid)?+
Sole Trader (paid) is £0.70/month for the first 6 months under the 90%-off promo live at audit, then £7/month excluding VAT. It removes the 5-invoices-per-month and 25-auto-categorised-transactions caps, adds CIS calculation and management, receipt capture (snap-and-scan), multiple bank accounts, 10GB document storage and human webchat support.
Is Sage Individual the same as Sage Sole Trader?+
Yes. Sage's own FAQ on the Sole Trader page confirms Sage Individual has been renamed Sage Sole Trader. Older mtdcompare content that referenced 'Sage Individual' as a distinct product now points to this entry.
Does Sage Sole Trader file MTD VAT?+
No. Sage Sole Trader is for MTD Income Tax only. VAT-registered sole traders are directed by Sage to Sage Accounting instead, which files both MTD Income Tax and MTD VAT (from £20/mo + VAT regular, 90% off first 6 months at audit).
Which Sage product should I use for MTD Income Tax?+
For non-VAT registered sole traders: Sage Sole Trader (free tier or £7/mo + VAT paid). For VAT-registered sole traders, freelancers and small businesses: Sage Accounting (from £20/mo + VAT). For established businesses with more depth: Sage 50 (£115/mo + VAT per sage.com captured 2026-09-30), though Sage 50 does not support MTD for ITSA for landlords per Sage's own community-hub announcement.