MTD for VAT returns simplified with Sage Accounting
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Small business software

Running a small business just got easier. Manage accounts, run payroll, and stay compliant with one cloud software package. Built for small business, whatever stage you're at.

Why Sage for Small Business?

How accounting and payroll software helps your business

Benefit from a small business solution that brings the tools you need to run your business in one place. Get one small business package that covers accounting, payroll, and HR.

One solution

Manage accounting, payroll and HR in one place with integrated software. No separate billing, products, or support needed - just seamless connection between tools. 

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Simple to get started

Get started right away. Whether you're a new business or making a switch, get integrated accounting and payroll software that's easy to set up on your desktop or mobile.

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Grows with your business

Upgrade, add features, or use only what you pay for as your team grows. From start up to success, your admin is covered every step of the way.

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Designed for compliance

Get confidence with HMRC-recognised accounting and payroll software you can trust. Never miss a deadline or delay a payrun. Spot errors early and keep up-to-date with changing legislation.

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Data you can trust

Securely store digital records, snap receipts in real-time and stay on top of invoices. Estimate and make decisions faster with connected, reliable, accurate data in one small business software package.

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Built with AI

Bring accounting, payroll and HR together with Sage Accounting. Manage the essentials in one connected place and add more as your business grows.

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One package to run your small business

Sage Copilot included

Bring accounting, payroll and HR together with Sage Accounting. Manage the essentials in one connected place and add more as your business grows.
Get 3 months free until 30 June

Sage Accounting for small businesses

Manage accounting, payroll and HR in one connected HMRC-recognised solution. Get Sage Copilot included in all plans to automate admin, save time, and get paid faster. 

 Productivity assistant included

Sage Accounting helps you:

  • Get paid 7 days faster
  • Stay on top of tax
  • Make decisions quicker using accurate data
  • Manage payroll and basic HR tasks 
  • Reduce admin with an AI assistant

Need a more specific product?

If a combined accounting and payroll package isn’t right for you, we also have standalone options for simple accounting, payroll, and HR.
Individual small business products

Sage Sole Trader

Simple accounting software for non-VAT registered sole traders to manage income, expenses and tax with confidence. Get help becoming MTD-ready. 

Individual small business products

Sage Payroll

Your trusted partner for faster, easy payroll. Get payroll essentials that are compliant and HMRC-recognised.

Individual small business products

Sage HR

For small businesses ready to grow their team without the people admin getting in the way.

Trusted by small business across the UK

Frequently asked questions on small business accounting and payroll software

A software suite for small business is a collection of interconnected applications - such as accounting, payroll, and HR designed to work together. They help manage all your core business needs in one place, in one system, instead of using separate tools for different tasks.  Integrated small business software that includes accounting, payroll, and HR can make business management easier and more efficient.

This means less manual reconciliation, fewer errors, and a clearer view of your finances. Sage Accounting is a cloud-based suite you start with the tools you need now and add more as your business grows.

Key Benefits

  • Lower cost through bundled software.
  • Built-in integration and compatibility between accounting, payroll, and HR.
  • Consistent user experience across tools, reducing the learning curve.
  • Automatic updates with no local installation.
  • Fewer errors from manual data entry.

Sage Accounting software package for accounting, payroll, and HR

Sage Accounting is an AI-powered cloud software suite that includes both accounting and payroll in one, with HR features included. You can access online anywhere, anytime. It's perfect for managing your business’ accounting needs like staying on top of your taxes while also having payroll and HR capabilities at no extra cost.

It’s designed specifically for:

  • UK small business owners  with up to 49 employees.
  • UK-based VAT-registered sole traders, whether they have staff or not.
  • UK limited companies in any industry, from professional services to construction.
  • Give your accountant or team members secure access to data they need without separate tools or spreadsheets. 

Managing people?

You can add additional Sage Payroll users to your payroll from within the product, where you will need to pay per employee, per month. Each Sage Accounting plan includes limits to how many employees you can add depending on your business size, so you will only pay more when you choose to upgrade or add employees. 

Better with Sage Copilot - our AI-powered productivity assistant 

This is included in every plan with Sage Accounting and enhances the included features, helping you automate admin tasks and get free guidance and support with real-time decision making.

Most small businesses need both from early on. A combined accounting and payroll software streamlines your business operations, keeping everything it one place. One of the key benefits of a combined software package is that it removes the friction of having two separate solutions. Sage Accounting works by integrating payroll data directly into your accounts. This reduces manual data entry, minimises errors, and saves time at month-end as you only handle your data once. In Sage small business software, payroll figures automatically feed into your accounting system, ensuring your team gets paid accurately and your financial records stay up-to-date. 

Yes. Sage Accounting is a combined, cloud-based accounting and payrolls software that's perfect for small businesses and start ups. It is accessible from any device, with data backed up in real time so you're not tied to a single computer or office. Your accountant can access what they need without waiting for you to send files. Sage provides online accounting and payroll software built specifically for small businesses in the UK - it is HMRC-recognised and compatible for MTD. 

Standalone accounting packages handle invoicing and bookkeeping - nothing more. A suite like Sage Accounting packages up accounting, payroll, and HR together with reporting tools that all share the same data. The practical difference is that payroll costs feed directly into your accounts, giving you consistent data in two places for a fuller, accurate picture. You’re not paying extra for integrations, manually exporting spreadsheets, or spending time matching up data. For small businesses planning to take on more staff or grow by managing multiple functions, a suite is a more scalable, cost-effective option as you get everything you need together at no extra cost. 

Everything is billed together at the end of the month, so not only do you pay for all products on one invoice, you can also upgrade your plans easily without having to buy more or go through an additional on-boarding process.

Don't need a combined solution? Sage has standalone products more suited to businesses who just need one thing:

  • Sage Sole Trader - for non-VAT registered sole traders. Plans start from FREE.
  • Sage Payroll - for core payroll and HR only. Plans start from £20 per month (excl. 20% VAT)
  • Sage HR - all-in-one HR for people management. Plans start at £5 per employee, per month (excl. 20% VAT). 

Yes. Sage is an HMRC-recognised software that is also Making Tax Digital (MTD) compatible. This means your VAT submissions can be filed directly from the software without manual uploads or third-party bridging software. This makes Quarterly and Year-End submissions much simpler. You'll be able to keep digital records secure, and your data accurate and up-to-date for compliance. Payroll is also in line with PAYE requirements. When HMRC rules change, the software makes automatic updates. If you're not yet registered for MTD, you can quickly get set-up with Sage as the deadlines roll out to more businesses. This will keep you compliant at all times. 

Sage is one of the longest-established payroll providers in the UK, with over 40 years of expertise. It is used by hundreds of thousands of small businesses. It is built for small businesses by those who understand small businesses, which is what sets us apart from other providers like QuickBooks and Xero. Unlike standalone payroll tools, Sage Payroll is part of a wider package; your payroll data connects directly to your accounts, reducing the need for manual reconciliation. It's HMRC-recognised, MTD-ready, and backed by UK-based support.  For small businesses looking for the best payroll option in the UK, Sage offers a scalable solution that grows alongside you.

Yes. Sage is designed to grow with you. You can start with basic accounting tools and add payroll or HR when you're ready, without switching platforms. There's no need to over-invest early; the combined packages mean you only pay for what you use - and that you only use what you need when you're ready. Many small businesses start with Sage from day one and use it well into their growth phase, which means there's no disruptive migration or software switching further down the line. We understand small businesses better than anyone, so have plans that are right for small businesses at every stage - even if you're just starting out. Sage Copilot, which is included at no extra cost, also means you get an in-built AI productivity assistant, so you never feel like you're working alone. 

Yes. Sage small business software runs entirely in the cloud, which means there's nothing to install. 

  • Your data is backed up automatically, and updates happen in the background.
  • You can log in from any device including desktop, tablet, or mobile.
  • You can share access with your accountant quickly and easily.
  • You can see a real-time view of your finances from wherever you are.

It's built as a genuine cloud management suite - not a legacy desktop tool with a browser interface bolted on.

Resources to help you run your small business

Sage Advice

Get everything from articles and guides to updates and practical advice for running your small business. 

Start-up hub

Getting started for small business

Are you a new business owner or start-up? Get all the information and guidance you need to hit the ground running. 

Sage Advice article

Tax year dates and deadlines UK 2026

All the key tax year dates and deadlines you should know in the UK, including what to do if you can’t pay, or if you miss a deadline.

Sage Advice article

Allowable expenses for self-employed UK: A practical guide

If you’re a sole trader, you can deduct expenses to reduce your tax bill. Find out what costs qualify and how to claim.

Sage Advice article

Payroll year end checklist 2025 to 2026

Payroll year end is approaching but don’t panic, there’s still time to get your requirements sorted. Here’s the insights you need.

Sage Advice article

How to write an invoice and what to include

The complete guide on how to create an invoice for UK businesses. Learn about the invoice details you need to include when writing an invoice to help you get paid on time.

Sage Advice article

Postponed VAT accounting: How it works for businesses

Postponed VAT accounting means business admin and tax must be done differently when dealing with importing. Here’s what you need to know.

Sage Advice article

A guide to VAT for digital services

We’ve created this in-depth guide so you can easily find out how your business is affected by the VAT rules for digital services.

Sage Advice article

Making Tax Digital for Income Tax explained

Discover everything you need to know about MTD for Income Tax with a free guide.

Sage Advice article

Employers’ National Insurance contributions: What to know

Understand how employers’ National Insurance contributions work, including current rates, thresholds, and how to manage them through payroll.

Sage Advice article

What is payroll processing? How to process payroll

Payroll processing doesn’t have to be a headache. Learn how to navigate it efficiently while keeping your HR team stress-free and on track.

Sage Advice article

How to pay yourself as a small business owner

When starting a business, how to pay yourself and how much are among the most challenging but ultimately satisfying decisions.

Ready to run your small business differently?

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