Free MTD software (UK): the honest list
"Free MTD software" is mostly a marketing label. There is one well-known bank-funded route (FreeAgent, free while you keep an eligible business account at NatWest, RBS, Mettle, or Ulster), plus several low-cost options that work well for landlords and sole traders. Here is a straight comparison.
Last reviewed: 2 May 2026 · Source: HMRC: Find MTD-compatible software for Income Tax
Quick answer
- If you bank with NatWest, RBS, Mettle, or Ulster: FreeAgent can be funded by the bank account, subject to eligibility rules and optional paid add-ons.
- If you are a landlord: Hammock or Landlord Studio is built for property income; both have free tiers worth trying.
- If you live in spreadsheets: bridging software (e.g. 123 Sheets) is the cheapest way to stay compliant without changing workflow.
- If you have a small Ltd or a growing sole-trader business: Xero or QuickBooks scales further than FreeAgent.
| Software | Type | Price | Sole traders | Landlords | VAT |
|---|---|---|---|---|---|
| FreeAgent ↗ Sole traders, contractors, small Ltds | Full accounting | Funded with eligible NatWest / RBS / Mettle / Ulster business accounts; otherwise from ~£19/mo | Yes | Limited | Yes |
| FreshBooks ↗ Freelancers and sole traders | Invoicing + accounting | From ~£15/mo | Yes | No | Yes |
| Hammock ↗ Landlords | Landlord-specific | Free tier (limited); paid from ~£10/mo | No | Yes | No |
| Landlord Studio ↗ Landlords | Landlord-specific | Free tier (basic); paid from ~£12/mo | No | Yes | No |
| QuickBooks Self-Employed ↗ Sole traders, gig workers | Sole-trader focused | From ~£10/mo (often £1/mo intro) | Yes | Limited | Yes (on higher tiers) |
| Xero ↗ Small businesses, Ltds | Full accounting | From ~£16/mo | Yes | Yes (with Hubdoc / property add-ons) | Yes |
| 123 Sheets / Bridging software ↗ Spreadsheet users who do not want to switch | Bridging only | From ~£15/year | Yes | Yes | Yes |
FreeAgent
Full accountingA well-known bank-funded route to MTD software in the UK if your NatWest Group or Mettle account meets the eligibility rules. Optional paid add-ons may apply.
Price: Funded with eligible NatWest / RBS / Mettle / Ulster business accounts; otherwise from ~£19/mo · Best for: Sole traders, contractors, small Ltds
Visit FreeAgent ↗FreshBooks
Invoicing + accountingStrong invoicing UX; lighter on UK-specific MTD ITSA features than FreeAgent.
Price: From ~£15/mo · Best for: Freelancers and sole traders
Visit FreshBooks ↗Hammock
Landlord-specificBuilt around property income, mortgage tracking, and tenant rent reconciliation. MTD ITSA quarterly updates included on paid plans.
Price: Free tier (limited); paid from ~£10/mo · Best for: Landlords
Visit Hammock ↗Landlord Studio
Landlord-specificOpen banking feeds, receipt scanning, and HMRC-compatible MTD ITSA submissions on paid plans.
Price: Free tier (basic); paid from ~£12/mo · Best for: Landlords
Visit Landlord Studio ↗QuickBooks Self-Employed
Sole-trader focusedMileage tracking, simple categorisation, MTD ITSA-ready. Not as detailed as the full QuickBooks Online.
Price: From ~£10/mo (often £1/mo intro) · Best for: Sole traders, gig workers
Visit QuickBooks Self-Employed ↗Xero
Full accountingComprehensive, app marketplace, slightly steeper learning curve than FreeAgent for individual sole traders.
Price: From ~£16/mo · Best for: Small businesses, Ltds
Visit Xero ↗123 Sheets / Bridging software
Bridging onlyLets you keep using a spreadsheet and submits the totals to HMRC via a digital link. Cheapest paid option; minimal features beyond submission.
Price: From ~£15/year · Best for: Spreadsheet users who do not want to switch
Visit 123 Sheets / Bridging software ↗How we picked these
We focused on tools that appear on HMRC's recognised software list for MTD for Income Tax (or MTD for VAT, where the product targets VAT only). Pricing reflects advertised UK prices at last review and may have changed. We are not paid to feature any provider; if affiliate partnerships are added in future, we will disclose them clearly on this page.
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