Free MTD software for Income Tax
Yes, there is genuinely free Making Tax Digital for Income Tax software — but 'free' always comes with a condition, so here's each route with the catch spelled out. Every option below is HMRC-recognised.
A free plan usually has limits (such as invoice volume or portfolio size); free-with-bank means free for as long as you hold the right business account; free-for-the-first-year then charges a small annual fee. Check the condition fits before you rely on it.
- Free plantrue annual cost, VAT incl.
Free tier covers a small number of units.
- Free plantrue annual cost, VAT incl.
Free plan for all business types (up to 1,000 invoices/yr); full MTD for Income Tax filing included.
- Free with your banktrue annual cost, VAT incl.
Free for life if you have a NatWest, Royal Bank of Scotland or Ulster Bank business account, or use Mettle.
- Free first yeartrue annual cost, VAT incl.
Free for the 2026/27 tax year, then £19.99/year.
Frequently asked questions
- Is there genuinely free MTD software?
- Yes — some tools have a free plan, some are free with a qualifying bank account, and some are free for the first tax year. Each option above states the exact condition.
- How is FreeAgent free?
- FreeAgent is free for life if you hold a NatWest, Royal Bank of Scotland or Ulster Bank business account, or use Mettle. Without one of those, it's a paid plan.
- What's the catch with free MTD software?
- Free plans typically cap usage (invoices or properties); free-with-bank depends on keeping that account; free-first-year reverts to a small fee. None of these is a hidden cost — just check the limit fits your situation.
- Is free software good enough for MTD?
- For straightforward affairs, yes. The free tiers here are HMRC-recognised and file quarterly updates. If you outgrow the limits, the paid step-up is shown on each product page.
More guides
Ranked by true annual cost using the same engine as the finder; see how it works. Links are affiliate links and never affect ranking. Not affiliated with HMRC; not tax advice.