Can I use a spreadsheet for self assessment instead of software?

Yes — HMRC accepts self assessment tax returns filed via their online portal regardless of how you track your income and expenses. A spreadsheet is perfectly fine for record-keeping. However, from April 2026 under Making Tax Digital, you may need MTD-compatible software or a bridging tool to submit quarterly updates digitally.

What should a self assessment spreadsheet track?

At minimum: date, description, category, amount, and whether it's income or expense. Good spreadsheets also track VAT (if registered), payment method, receipt reference, and running totals by category to make filling in your tax return quick.

Is a free spreadsheet good enough or should I pay for one?

For very simple sole trader businesses with few transactions, a free template works fine. Paid spreadsheets (typically £5-£15) add pre-built formulas for tax calculations, National Insurance estimates, expense categories matching HMRC's SA103 form, and sometimes MTD bridging compatibility — saving hours at tax return time.

Will spreadsheets still work under Making Tax Digital?

Spreadsheets can still work under MTD, but you'll need bridging software to submit your quarterly updates to HMRC digitally. You keep your records in the spreadsheet, then the bridging tool pulls the summary figures and sends them to HMRC. This is often the cheapest MTD-compliant approach.

Best Self Assessment Spreadsheet for Sole Traders UK (2025/26 Tax Year)

Most sole traders don't need expensive accounting software. A well-built spreadsheet does the job — tracks your income, categorises expenses, estimates your tax bill, and keeps HMRC-ready records.

But not all spreadsheets are equal. Some free templates are barely functional. Some paid ones are overcomplicated. Here's an honest breakdown of your options for the 2025/26 tax year.

What a Good Self Assessment Spreadsheet Must Do

Minimum Requirements ✓

Income tracking — date, client/source, description, amount
Expense tracking — date, description, category (matching SA103 categories), amount
Running totals — total income, total expenses, estimated profit
Tax estimate — basic income tax + Class 4 NI calculation
Category summaries — grouped by HMRC expense categories for easy tax return filing

Nice to Have ✓

Mileage tracker with HMRC approved rates
Use-of-home calculation (simplified expenses or actual costs)
VAT tracking (if registered)
Payment status tracking (invoiced vs paid)
Monthly/quarterly summary views
MTD quarterly update figures (income + expenses per quarter)

Free Spreadsheet Options

1. HMRC SA103 Basic Template (DIY)

Free — build your own

Many sole traders just create a simple two-tab spreadsheet — one for income, one for expenses — and total it up at year end. It works, but you're building everything from scratch.

Completely free
You control the format
Works in Excel, Google Sheets, LibreOffice

No built-in tax calculations
Easy to make formula errors
No expense categories pre-set
Time-consuming to build properly

2. GOV.UK / HMRC Guidance Templates

Free

HMRC doesn't provide an official spreadsheet, but their record-keeping guidance describes what to track. Various accountancy blogs offer free templates based on this guidance.

Based on HMRC requirements
Usually covers basic income/expenses
Good starting point

Very basic — usually no formulas
No tax calculations
Often requires email signup
Quality varies enormously

3. Google Sheets Community Templates

Free

Search the Google Sheets template gallery for "self assessment" or "sole trader" — you'll find community-contributed options. Also check Reddit threads for shared templates.

Free and instantly accessible
Some have decent formulas
Cloud-based — access anywhere

Rarely UK-specific
Tax rates often outdated
No support or updates
May contain formula errors

Paid Spreadsheet Options

4. Landolio Tax Tracker Spreadsheet

£7 — one-off

Purpose-built for UK sole traders filing self assessment. Pre-configured with 2025/26 tax rates, HMRC expense categories matching the SA103 form, automatic tax + NI calculations, and quarterly summary views ready for MTD.

UK-specific with current 2025/26 rates
SA103 expense categories pre-built
Auto-calculates income tax + Class 4 NI
Quarterly views for MTD preparation
Works in Excel and Google Sheets
One-off payment — no subscription

Not free (but cheaper than any software)
Manual data entry (like all spreadsheets)
No bank feed integration

Best for: Sole traders who want a ready-made, accurate spreadsheet without building one from scratch. Particularly useful if you're preparing for MTD quarterly updates.

5. Etsy / Gumroad Spreadsheet Templates

£3–£20

Various sellers offer self assessment spreadsheets on marketplace platforms. Quality ranges from excellent to terrible — check reviews carefully.

Wide variety of options
Some are very polished
Buyer reviews help filter quality

Many aren't UK-specific
Tax calculations may be wrong or outdated
Hard to verify accuracy before buying
Often no updates for new tax years

Comparison Table

Feature	DIY	Free Templates	Landolio Tax Tracker	Marketplace
Price	Free	Free	£7	£3–£20
UK tax rates	❌ Build yourself	⚠️ Often outdated	✅ 2025/26	⚠️ Varies
SA103 categories	❌	⚠️ Sometimes	✅	⚠️ Varies
Tax + NI calculation	❌	❌ Usually not	✅	⚠️ Varies
MTD quarterly view	❌	❌	✅	❌ Rare
Time to set up	2–4 hours	30 mins	5 mins	15–30 mins
Accuracy guarantee	❌ Your formulas	❌	✅	❌

Spreadsheet vs Software — When to Upgrade

A spreadsheet is genuinely fine if you:

Have fewer than ~200 transactions per year
Don't need automatic bank feeds
Are comfortable with basic Excel/Sheets
Want to minimise costs

Consider proper accounting software if you:

Send lots of invoices and need payment tracking
Want automatic bank reconciliation
Are VAT registered and need MTD VAT submissions
Have complex income from multiple sources

For a comparison of free software options, see our guide to free MTD software for sole traders.

💡 Our Verdict

For most sole traders earning under £85,000, a well-built spreadsheet is all you need for 2025/26. It's cheaper than any software subscription, you own your data, and it forces you to actually understand your numbers.

The key is using one with correct 2025/26 tax rates and proper HMRC expense categories — otherwise you're guessing at your tax bill and risking mistakes on your return.

📊 Landolio Tax Tracker Spreadsheet — £7

Pre-built for UK sole traders. 2025/26 tax rates, SA103 categories, auto tax + NI calculations, MTD quarterly views. Works in Excel and Google Sheets.

Get the Tax Tracker →

Making Your Spreadsheet MTD-Ready

From April 2026, sole traders earning over £50,000 must keep digital records and submit quarterly updates to HMRC under Making Tax Digital.

You can still use a spreadsheet — but you'll need bridging software to submit the quarterly figures electronically. Here's how it works:

Keep your records in your spreadsheet as normal
At the end of each quarter, note your total income and total expenses
Enter those figures into your bridging software
The bridging tool submits them to HMRC via their API

Bridging software costs around £10–£50/year — still far cheaper than full accounting software. See our MTD software costs guide for details.

Our Tax Tracker Spreadsheet includes quarterly summary views specifically designed to give you the figures your bridging software needs — no manual totalling required.

5 Spreadsheet Mistakes That Cost Sole Traders Money

Using last year's tax rates — thresholds and rates change. A 2024/25 spreadsheet won't give accurate figures for 2025/26.
Missing expense categories — if your spreadsheet doesn't match HMRC's SA103 categories, you'll miss allowable deductions. See our guide to 25 expenses sole traders forget to claim.
Not tracking mileage separately — HMRC requires mileage logs for vehicle claims. A general "travel" column isn't enough.
Forgetting Class 4 National Insurance — many DIY spreadsheets only calculate income tax, missing the 6% NI that adds hundreds to your bill.
No backup — HMRC can request records going back 6 years. Keep copies. Cloud storage (Google Sheets) helps here.

🧰 Want the Complete Tax Toolkit?

Tax Tracker Spreadsheet + MTD Readiness Toolkit + Self Assessment Recovery Kit — everything a sole trader needs for 2025/26.

View the Getting Paid Toolkit →

Best Self Assessment Spreadsheet for Sole Traders UK (2025/26)