Running a UK limited company brings obligations a sole trader doesn't have: Corporation Tax (filed via CT600), Companies House annual accounts, and often payroll for yourself as a director. If you're a sole trader instead, our guide to AI tools for UK sole traders' Self Assessment covers that simpler setup — this post is specifically for limited companies.
A quick honesty note, same as our last UK post: most of what's branded "AI" here is automation — receipt OCR, auto-categorisation, anomaly flagging — bolted onto established platforms, rather than something fundamentally new. One provider, FreeAgent, doesn't even use the AI label for its automation, despite it working similarly to competitors who do.
Quick comparison
| Tool | Best For | Ltd Company Pricing | AI Feature |
|---|---|---|---|
| Xero | Growing companies, multiple users | ~£16–18/mo (Ignite) to ~£37–39/mo (Grow) | Auto-categorisation, anomaly detection, natural-language queries |
| QuickBooks Online | Businesses needing inventory/management reporting | ~£38/mo (Essentials) — confirm current tier after 2026 price changes | Intuit Assist AI assistant |
| Sage Accounting | Established companies, accountant-friendly | ~£14–15/mo (Start) to ~£30–43/mo (Standard) | Sage Copilot AI assistant |
| FreeAgent | Simple Ltd, 1–2 directors, NatWest/RBS banking | Free (qualifying NatWest/RBS/Mettle) or ~£33/mo standalone | Automation (not AI-branded) |
| Crunch | Solo directors wanting software + accountant | ~£29.50–89.50/mo | Software-plus-human, not AI-native |
Pricing varies across sources and changes often, especially after 2026 provider price increases — confirm current rates directly with each provider.
The tools
Xero
Xero is the most feature-rich of the group for a growing limited company, with AI that learns categorisation patterns over time and flags unusual transactions for review. It supports multiple users without the per-seat charges some competitors apply.
Good for: Limited companies planning to scale, or with an accountant and bookkeeper both needing access.
QuickBooks Online
QuickBooks includes Intuit Assist, an AI assistant for categorisation and basic queries, plus stronger inventory and management-reporting tools than most competitors. Worth flagging: QuickBooks pushed a notable 2026 price increase, and sources disagree on exact current tier pricing — confirm directly before committing.
Good for: Limited companies that need inventory tracking or detailed management reports alongside bookkeeping.
Sage Accounting
Sage has been a UK accounting mainstay since 1981, and its AI assistant, Sage Copilot, answers questions and guides newer users through tasks. It's particularly well-integrated with the UK accountant and payroll ecosystem.
Good for: Established companies that want strong accountant compatibility and are willing to pay for that maturity.
FreeAgent
FreeAgent is genuinely free for limited companies banking with NatWest, RBS, or holding a Mettle account — otherwise around £33/month. It's UK-built specifically for small limited companies and contractors, with Corporation Tax and Self Assessment filing built in for director-shareholders.
Good for: A simple limited company with one or two directors, especially if you already bank with a qualifying provider.
Crunch
Crunch pairs its software with an actual accountant handling Self Assessment and year-end accounts on most plans — not AI-native, but a genuine alternative to the DIY approach the other tools assume.
Good for: Solo directors who'd rather pay for a bundled accountant than learn bookkeeping software from scratch.
Which one should you choose?
- Bank with NatWest, RBS, or Mettle, simple company structure: FreeAgent — free, hard to beat.
- Planning to grow, need multiple users: Xero.
- Need inventory or detailed management reporting: QuickBooks Online.
- Want an established, accountant-friendly platform: Sage Accounting.
- Want software and a human accountant in one fee: Crunch.
FAQ
Is AI bookkeeping software accurate enough to skip an accountant entirely?
No — even providers marketing strong AI features (Xero, QuickBooks, Sage) still recommend accountant review for Corporation Tax filing and year-end accounts. These tools handle day-to-day categorisation well; the annual filings still benefit from professional sign-off.
Do I need different software than a sole trader would use?
Not necessarily the same product, but you do need limited-company-specific plans — Corporation Tax (CT600) filing and Companies House-ready accounts aren't part of a sole trader's Self Assessment workflow.
Is FreeAgent really free, or is there a catch?
It's genuinely free with a qualifying NatWest, RBS, or Mettle business account — a real benefit, not a stripped-down trial tier, according to multiple independent reviews.
Why did QuickBooks pricing seem to jump in 2026?
Several sources reference a notable QuickBooks UK price increase in 2026, though exact current figures vary by source — confirm directly on QuickBooks' own site before subscribing.
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