Compare taxi accounting software for self-employed taxi and private hire drivers in the UK. We look at price, ease of use, mileage, receipts, tax records and Making Tax Digital.
Looking for other tools for your business? Explore more software and apps for taxi and private hire.
Accounting and bookkeeping software for taxi drivers
Taxi drivers and private hire businesses can use accounting and bookkeeping software to record income and expenses, keep receipts, track mileage where appropriate and prepare for Making Tax Digital.
Quick answer
Best overall: FreeAgent
FreeAgent is our top choice for most self-employed taxi and private hire drivers. It is easy to use, works with Making Tax Digital and has strong customer reviews.
Best for growing taxi businesses: Xero
Xero is a good choice if you run a larger taxi or private hire business and want more tools for staff, expenses and payments.
Best for automatic mileage tracking: QuickBooks
QuickBooks can automatically record journeys on your phone, which may be useful for private hire drivers using a normal car.
Black Cab and Hackney Carriage drivers should be careful with mileage claims. HMRC says the simplified mileage method cannot be used for vehicles designed for commercial use, such as Black Cabs and Hackney Carriages. An app can still help you keep records, but that does not mean you can use the flat mileage rate for your tax return.
Compare our top picks
We compared taxi accounting software on price, ease of use, UK tax support, mileage tools and customer feedback.
| Tool | Best for | Score | Price |
|---|---|---|---|
| FreeAgent | Overall | 94/100 | £19/mo* |
| Xero | Growing firms | 88/100 | £7+/mo |
| QuickBooks | Mileage | 82/100 | £10/mo |
FreeAgent can be free if you have an eligible NatWest, Royal Bank of Scotland, Ulster Bank or Mettle business account. Prices exclude VAT and promotional discounts. Xero’s £7 Simple plan is for basic needs; its Grow plan costs £39/month and includes expense and mileage claims for one user. QuickBooks Sole Trader Plus costs £10/month; VAT-registered businesses may need Simple Start at £16/month.
Customer review scores are not taxi-specific. We use them to judge the general experience of using each product, alongside the features that matter to taxi and private hire drivers.
Last checked: 9 September 2026
Last updated: 9 September 2026
How we scored taxi accounting software
30% — Customer reviews
Is the software well rated, and are there enough recent reviews to trust the score?
25% — Fit for taxi and private hire drivers
Does it make everyday jobs such as recording income, expenses, receipts and mileage easier?
20% — UK tax needs
Does it work with Making Tax Digital and common UK tax requirements?
10% — Easy to use on a phone
Can you deal with basic admin without spending hours at a computer?
10% — Works with your bank and accountant
Can you bring in bank transactions and share your records with an accountant?
5% — Price
Is it good value for a sole trader or small taxi business?
Affiliate commissions do not affect our scores or rankings.
FreeAgent — Best overall
Viaqo score: 94/100
FreeAgent is built for UK small businesses and sole traders. It keeps your income, expenses, receipts and tax records in one place.
It is our top choice because it combines simple day-to-day use with strong UK tax support.
Why we like it
- Easy to understand — recent customer reviews often praise FreeAgent for being simple to use.
- Ready for Making Tax Digital — you can keep digital records and send the required updates to HMRC.
- Good for receipts — take a photo of a receipt instead of keeping piles of paper.
- Works with your bank — transactions can come into FreeAgent automatically, so you do not have to type everything yourself.
- UK support — telephone, email and chat support are available.
- Can be free — customers with eligible NatWest, Royal Bank of Scotland, Ulster Bank or Mettle business accounts can get FreeAgent without paying the normal subscription.
- Excellent customer feedback — FreeAgent currently has 4.6/5 from around 3,000 Trustpilot reviews.
Things to know
The normal sole trader price is £19/month excluding VAT. There is also an annual plan at £190 before discounts.
However, receipt scanning has a limit. The standard plan includes up to 10 automatically read receipts or bills each month. Unlimited use costs an extra £5/month.
Mileage is not fully automatic in the same way as QuickBooks. You can record mileage claims, but FreeAgent is not our first choice if automatic journey tracking is your main priority.
Who should choose FreeAgent?
FreeAgent is a strong choice if you are a self-employed taxi or private hire driver and want something simple for income, expenses, receipts and tax.
It is especially attractive if your business bank account gives you FreeAgent for free.
Who may prefer something else?
QuickBooks may suit you better if automatic mileage tracking matters a lot.
Xero may be a better fit if you run a larger taxi business with staff and need more business tools.
Xero — Best for growing taxi businesses
Viaqo score: 88/100
Xero is a well-known UK accounting service used by businesses of many sizes.
For a driver working alone it may be more than you need. However, it becomes more useful if your taxi or private hire business grows.
Why we like it
- Ready for Making Tax Digital.
- Works for VAT as well as Income Tax.
- Can grow with your business — there are plans for businesses with employees and more complex needs.
- Receipt storage — you can photograph and keep receipts digitally.
- Mileage tools are available — Xero can calculate a journey from the start and end points you enter.
- Strong customer feedback — Xero currently has 4.1/5 from more than 11,000 Trustpilot reviews.
Things to know
The cheapest plan does not include everything. Xero Simple costs £7/month excluding VAT and covers basic accounting and MTD for Income Tax.
Mileage and expense claims cost more. The Grow plan currently costs £39/month and includes expense and mileage claims for one user.
It may feel like too much for one driver. If you simply want to record your earnings, expenses and tax, FreeAgent or QuickBooks may be easier.
Who should choose Xero?
Xero makes more sense if you run a growing taxi or private hire business rather than working entirely on your own.
For example, it may suit a business with employees, several vehicles or an accountant who already works with Xero.
Who may prefer something else?
For example, FreeAgent is simpler for many sole traders.
QuickBooks is worth looking at if you mainly want easy mileage tracking from your phone.
QuickBooks — Best for automatic mileage tracking
Viaqo score: 82/100
QuickBooks is a popular accounting service with a plan made for UK sole traders.
Its biggest advantage for many private hire drivers is automatic mileage tracking.
Why we like it
- Automatic mileage tracking — the phone app can record trips as you drive.
- Separate work and personal journeys — you can review each trip and mark it as business or personal.
- Take photos of receipts from your phone.
- Making Tax Digital ready.
- Sole trader plan available — Sole Trader Plus currently costs £10/month excluding VAT before promotional discounts.
- VAT option available — Simple Start costs £16/month for businesses that need VAT features.
Things to know
However, customer feedback is more mixed than for FreeAgent or Xero. QuickBooks UK currently has about 3.7/5 from around 17,000 Trustpilot reviews.
Recent reviews include complaints from some sole traders about changes to QuickBooks and moving from older self-employed products. We take that into account in the lower Viaqo score.
Automatic mileage does not mean every driver can use HMRC’s flat mileage rate. Black Cabs and Hackney Carriages are specifically excluded from HMRC’s simplified mileage method.
Who should choose QuickBooks?
QuickBooks is worth considering if you are a private hire driver using a normal car and automatic mileage records would save you time.
Who may prefer something else?
FreeAgent has much stronger current customer feedback and may feel simpler for everyday bookkeeping.
Meanwhile, Xero may suit a growing taxi company better.
Also considered
Sage Sole Trader — Best free starting point
Sage now offers a free Sole Trader plan aimed at UK self-employed people who are not VAT registered.
It includes:
- income and expense records;
- Making Tax Digital for Income Tax;
- one connected bank account;
- a mobile app;
- up to five sales invoices per month.
There is no monthly fee for the Free plan. However, Sage also offers a paid Sole Trader plan for £7/month excluding VAT with more features.
Worth considering if: keeping the cost at £0 is your main priority and your needs are simple.
Why it missed our top three: Sage’s general Trustpilot profile has a large number of reviews, but those reviews cover many different Sage products. That makes it harder to judge the new Sole Trader product on its own.
A quick word about Making Tax Digital
This matters increasingly for self-employed drivers.
HMRC is bringing Making Tax Digital for Income Tax in gradually:
qualifying income over £50,000 → from 6 April 2026
over £30,000 → from 6 April 2027
over £20,000 → from 6 April 2028
If it applies to you, you need compatible software to keep digital records and send updates to HMRC.
You do not need to choose the most expensive accounting software just because of MTD. FreeAgent, Xero, QuickBooks and Sage all offer MTD-ready options.
Which taxi accounting software should you choose?
FreeAgent is our first choice if you want the simplest all-round option for a self-employed driver.
Xero may suit you better if your taxi or private hire business is growing and you need more tools for several people.
QuickBooks is worth considering if automatic mileage tracking is particularly useful to you.
Sage Sole Trader is worth a look if you want to start with a free MTD-ready option.
For most self-employed taxi and private hire drivers, FreeAgent is where we would start.
Frequently asked questions
What is the best taxi accounting software?
FreeAgent is our top choice for most self-employed taxi and private hire drivers because it is easy to use, supports Making Tax Digital and has strong customer feedback.
Do taxi drivers need accounting software?
Not every driver is legally required to use accounting software yet. However, you need to keep proper records of your income and business costs.
Making Tax Digital for Income Tax is now compulsory for some self-employed people and will cover more people over the next two years.
Can accounting software track my Uber, Bolt or Freenow income?
You can record income from these platforms in accounting software and bring bank transactions into your records.
The exact amount of automatic work depends on your bank and the software you choose. You should still check that the income shown in your accounts matches your driver statements.
Can I claim my mileage as a taxi driver?
It depends on the vehicle and your circumstances.
HMRC allows simplified mileage expenses for some vehicles, but not cars designed for commercial use such as Black Cabs and Hackney Carriages. Those drivers normally need to deal with their actual vehicle costs instead.
If you are unsure which method applies to your vehicle, check with HMRC or an accountant before making a claim.
What costs should taxi and private hire drivers keep records of?
Keep records of your business income and costs such as fuel, insurance, repairs, servicing, parking and licence-related costs.
Whether a cost can actually be claimed against tax depends on your circumstances, so keeping the receipt does not automatically mean the whole amount is tax-deductible.
Is FreeAgent really free?
It can be. FreeAgent is available without the normal subscription charge if you have an eligible business account with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle. Conditions apply.
Otherwise, the normal sole trader price is currently £19/month excluding VAT.
Sources checked
- FreeAgent — UK sole trader pricing, MTD and accounting features.
- Xero — UK pricing, MTD, expenses and mileage.
- QuickBooks — UK sole trader pricing, MTD and mileage tracking.
- Sage — UK Sole Trader Free and MTD features.
- HMRC / GOV.UK — Making Tax Digital dates and vehicle expense rules.
- Trustpilot — customer feedback for FreeAgent, Xero and QuickBooks.