Wave is free, and that is the whole pitch, but free comes with a shape that fits American and Canadian sole traders, not UK ones. UK tradesmen and subcontractors who outgrow Wave usually do so over four specific gaps: CIS deductions, the VAT reverse charge, UK payment collection and Making Tax Digital readiness. Here is where Wave stands and what to pick instead.
- Wave’s core invoicing and accounting are free, that part is real.
- No CIS deduction handling: subcontractors do the maths manually.
- No VAT reverse charge workflow for construction work.
- UK payment collection and support have been limited compared to the US and Canada.
- Sendinvo, Zoho Invoice and FreeAgent are the UK-focused alternatives.
Where Wave genuinely works
Fairness first: Wave is not a bad product. For a UK sole trader with simple needs it offers:
- Free unlimited invoices and estimates, with a clean, professional layout.
- Free basic accounting (income, expenses, reports) which most free invoicing tools do not include.
- Receipt scanning and bank connection for tracking what has been paid.
If your work is domestic customers, cash or bank transfer, no VAT, no subcontracting, Wave can genuinely be enough. The problems start with construction-specific rules.
Where Wave falls short for UK trades
| Requirement | Wave | Why it matters on site |
|---|---|---|
| CIS deductions (0% / 20% / 30%) | Not built in: manual calculation on every invoice | A wrong labour/materials split every month means a wrong tax position every month |
| VAT reverse charge | No construction reverse-charge workflow | Invoicing a main contractor without the required wording creates compliance work |
| UK payment collection | Historically focused on US and Canada; UK card payment support has been limited | Customers can’t pay online from the invoice in many UK setups |
| Making Tax Digital for Income Tax | No UK MTD compliance path | April 2026 changes make digital, compatible records a requirement for higher-earning sole traders |
| Deposits and stage payments | Basic; no trade-specific stage/retention logic | Builders live on deposits and stage invoicing |
None of these is a niche complaint: they are the default conditions of UK trade work. A subcontractor invoicing a contractor under CIS is doing the one thing Wave was not shaped for.
UK alternatives worth comparing
| Software | Best for | Trade-off |
|---|---|---|
| Sendinvo | CIS deductions, reverse charge, deposits and automatic reminders, invoicing only | No full bookkeeping ledger |
| Zoho Invoice | Free invoicing with strong customisation | Free tier leaves chasing and UK construction rules to you |
| FreeAgent | UK sole traders who want tax estimates and MTD-friendly records built in | Full bookkeeping you must maintain |
| QuickBooks | Trades who want bookkeeping, receipt capture and accountant access together | Paid; heavier than invoicing alone |
| Xero | Businesses with an accountant already in Xero | Monthly cost plus bookkeeping discipline |
For the tool-by-tool detail, see the 2026 trades shortlist.
How to decide
- Invoicing a contractor under CIS? Wave’s manual route means recalculating deductions per invoice; a UK tool that handles them is the better trade.
- Registered for VAT, doing construction work? The reverse charge wording is a compliance requirement. Check what a reverse-charge invoice must show.
- Turnover heading past £50,000? MTD for Income Tax makes software records the compliance mechanism from April 2026.
- None of the above, low volume? Wave’s free tier is a legitimate answer. Use it.
The honest comparison is not “free vs paid”. Wave is free and so is Zoho Invoice. It is “free-and-generic vs focused-on-UK-construction”. For a subcontractor, focused wins; see how the CIS deduction gets handled automatically.
FAQ
What are the best Wave alternatives for UK tradesmen in 2026?
Sendinvo for CIS deductions, reverse charge and reminders; Zoho Invoice for a free customisable option; FreeAgent for UK tax estimates and MTD-friendly records; QuickBooks or Xero when you want full bookkeeping.
Is Wave really free?
Yes, Wave’s core invoicing and accounting plan is free, with paid add-ons for payment processing and services like payroll in its home markets. The free part is genuine; the trade-off is feature depth for UK construction rules.
Does Wave support CIS deductions for UK subcontractors?
No, there is no CIS deduction workflow, so the 0%, 20% or 30% deduction on the labour element must be calculated and laid out manually on every invoice.
Can Wave handle the VAT reverse charge?
Not as a construction workflow. A reverse-charge invoice must carry specific wording and treatment that Wave’s standard template does not produce, so it becomes a manual job on each invoice to a main contractor.
Can my UK customers pay Wave invoices online?
Wave’s payment processing has been focused on the US and Canada; UK card payment support has been limited, so most UK customers pay Wave invoices by bank transfer outside the invoice.
Is Wave compliant with Making Tax Digital for Income Tax?
Wave has no UK MTD pathway. From April 2026, sole traders with qualifying income over £50,000 need digital records submitted through compatible software, a UK-focused tool is the safer base.
One last thing
Wave is free for the same reason a hammer is cheap: it is a general tool, and your job is not general. If CIS deductions and the reverse charge are on every invoice you send, the software should carry them. That is the whole case for switching.