Tools and providers
Part of How to choose time tracking software for UK freelancers
How to choose time tracking software for UK freelancers
Choosing time tracking software as a UK freelancer: compare Toggl Track, Clockify, Harvest and FreeAgent for IR35, GBP billing, VAT, bank holidays, data protection.
What to take away
- Compare Toggl Track, Clockify and Harvest, which publish free tiers, with FreeAgent and Xero Projects, which publish paid plans.
- Match the billing unit to the tool. Harvest records billable hours and creates GBP invoices.
- FreeAgent and Xero both handle MTD VAT records.
- Set bank holidays and data retention manually. Software defaults rarely match UK rules.
Off-payroll rules and your records
IR35, the off-payroll working rules, applies where you supply services through your own limited company, not where you trade as a sole trader.
GOV.UK's guidance on becoming a sole trader sets out the direct route, where the client pays you and no intermediary sits in the middle.
If you work through a company, the client decides your status. That decision rests on evidence about control and substitution. A timesheet showing fixed hours, one client and no gaps describes employment, not a business.
Record the work, the date and the place, not only the hours clocked. Toggl Track and Harvest both let you add descriptions and tags to entries. Those notes can show varied clients and places. Sole traders are taxed directly on profit, so their records support an income tax return rather than a status test.
Agree the billing unit first
Decide whether you sell hours, half days or full days, then make the software mirror that choice. A freelance designer on £65 an hour who bills 37 tracked hours invoices £2,405 before VAT. The same week at a £450 day rate for five days comes to £2,250, so the unit is worth £155 a week.
Hourly vs day rate gap
- £2,40537 hours at £65 before VAT
- £2,250Five days at £450
- £155Weekly difference between units
Billing unit fit and watch-outs
Hourly
- Best for
- Support retainers
- Watch for
- Rounding, minimum blocks
Half day
- Best for
- Workshops, advisory calls
- Watch for
- Full-day output assumed
Day rate
- Best for
- Defined deliverables
- Watch for
- Bank holidays, travel
Fits
- Hourly
- Support retainers and variable scopes
- Half day
- Workshops and advisory calls
- Day rate
- Defined deliverables and on-site work
Watch for
- Hourly
- Rounding rules and minimum blocks
- Half day
- Clients assuming a full day of output
- Day rate
- Bank holidays, travel and part days
Rounding matters. Ten minutes here and there adds up when a client checks the month.
Charge what the agreed unit says, not what feels generous in a short week.
Harvest bills in hourly and fixed-fee formats. Xero Projects tracks time and expenses against a job. Both can produce GBP invoices. Toggl Track records billable hours but relies on another tool for invoicing. Clockify has a free tier with unlimited users and billable rates.
Bank holidays split the calendar. England and Wales share dates, Scotland keeps its own. Check whether your tracker has a UK holiday calendar. Most require manual non-working days. A day rate retainer should name the holidays it covers.
Where the timesheet feeds the invoice, invoice automation for UK small businesses removes the rekeying step and keeps line items consistent.
VAT and digital records
VAT registration is compulsory once taxable turnover passes the threshold. GOV.UK's VAT registration guidance states that the threshold has been £90,000 since 1 April 2024.
VAT registration threshold
£90,000
Compulsory once taxable turnover passes it
Unchanged since 1 April 2024
Show VAT separately on invoices
Above that line invoices need VAT shown separately. Store the rate on each entry, not on the client record. FreeAgent and Xero handle MTD VAT returns and digital records. QuickBooks Online does the same, and QuickBooks Time feeds approved timesheets into it.
Making Tax Digital for VAT requires digital records. That is simpler when hours, rates and VAT come from one export. Freelancers under the threshold still gain from clean line items if they cross it mid-year. Clockify and Toggl Track export CSV files.
Client data inside the tracker
Time entries carry client names, project codes and sometimes details about the client's staff. The ICO's guide to the UK GDPR covers the lawful basis and records you should keep.
Ask three things before you upload anything: where data is stored, who can see it and how you get it out. A tracker with no export is a trap. FreeAgent is UK-based and owned by NatWest. Toggl Track, Clockify and Harvest are international services, so check transfer safeguards.
Delete entries when a contract ends, unless record-keeping rules require longer. Xero and QuickBooks let you set user roles, which limits who sees client names.
A five-step shortlisting routine
- List your three largest clients and the billing unit each one uses.
- Write down what must appear on the invoicehours, rate, VAT line and purchase order.
- Run one real week in a free tier before paying. Toggl Track, Clockify and Harvest offer free plans or trials.
- Check exports and retention settings you would rely on if a client asked.
- Price the whole year, because the full cost of productivity software includes setup and exit, not just the seat.
Common questions
Does HMRC require freelancers to keep timesheets?
No. HMRC wants records that support your tax return, not a timesheet. Through a limited company, dated entries showing client, place and work pattern are the evidence a status check would want. Toggl Track, Harvest and Clockify store dated entries.
Should I charge for bank holidays?
Only if the contract says so. A day rate normally covers a working day. Name chargeable and non-chargeable holidays. Scotland's dates differ from England's. Set them in Harvest or Xero Projects as non-billable days.
Do I need paid software as a sole trader?
Not at the start. Clockify's free tier covers unlimited users and basic time tracking. Toggl Track has a free plan for small teams. Pay once you need VAT-ready exports or several rates. FreeAgent is free with an eligible NatWest, Royal Bank of Scotland, Ulster Bank or Coutts business current account.
