Free MTD software in the UK: what is actually free?
Free can mean a genuinely free plan, a bank-bundled tool, a free trial, or a low-cost route that still charges for extra features. This page explains the difference and points you into the main software comparison so the product list does not drift.
By Mehmet Demir · Last reviewed: 2 May 2026 · Software finder checked: May 2026
Bottom line
Start with the free and low-cost sort on the main comparison page, then confirm current pricing with the provider and current compatibility on GOV.UK before choosing.
What counts as free?
Genuinely free plan
A provider offers an ongoing free tier, usually with limits on users, entries, submissions, or support.
Bank or account bundle
Software is included while you keep an eligible business account or paid banking plan.
Free trial only
Useful for testing, but it is not a long-term free route. Check when billing starts.
Low-cost, not free
Spreadsheet bridging or filing-first tools can be cheaper than full accounting software without being free.
Free or low-cost routes to compare
These examples come from the same software data used by the main comparison page. They are starting points, not a definitive recommendation.
Core accounting
Clear Books
Best for: small businesses wanting a simple UK cloud accounting option with MTD-focused support.
Free MTD-focused tier available; paid accounting plans available.
Accounting / spreadsheet route
QuickFile
Best for: smaller businesses and users who want a low-cost route with spreadsheet-friendly options.
Free for smaller accounts, with paid power-user options.
Tax filing / bridging
My Tax Digital
Best for: users looking for a simple or free MTD route.
Free or low-cost routes may be available; verify current terms.
Tax filing
TaxHeaven
Best for: users looking for a lightweight tax-filing route.
Free tier or low-cost filing options may be available; verify current terms.
Sole trader accounting
Sage Sole Trader
Best for: sole traders who want a simpler Sage product rather than full accounting software.
Sole-trader plans, including a free tier where available.
Core accounting
Zoho Books
Best for: budget-conscious sole traders who still want full accounting features.
Free and paid plans depending on turnover and features.
When free software may not be enough
- Multiple trades, property income, foreign property, or joint ownership can need more careful records.
- Bank feeds, mobile receipt capture, accountant access, and support may sit behind paid plans.
- Spreadsheet routes can be cheaper, but you still need a reliable digital-link workflow.
- Switching software mid-year can be awkward, so test the workflow before relying on it for live submissions.
Compare current options
Pricing summaries were last checked May 2026. Always confirm current pricing with the provider and check current MTD compatibility on GOV.UK before choosing.
Open the free/low-cost comparison