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 plan for all business types (up to 1,000 invoices/yr); full MTD for Income Tax filing included.
- Free plantrue annual cost, VAT incl.
Entirely free for MTD for Income Tax: no tiers, no property limit, no expiry. Works as spreadsheet bridging or simple in-app accounting, for sole traders and landlords.
- Free plantrue annual cost, VAT incl.
Free version is HMRC-recognised and free to comply with MTD for Income Tax quarterly updates (sole trader and UK property). The optional Pandle Pro adds automation but isn't required to file.
- Free plantrue annual cost, VAT incl.
Free plan for sole traders and landlords with basic needs: MTD for Income Tax quarterly updates and year-end filing, with no transaction or time limits and an accountant invite.
- Free plantrue annual cost, VAT incl.
Free for sole traders, built into the SumUp platform and powered by Sage. Quarterly updates ready now; the final declaration is rolling out. Sole-trader income only (no property).
- Free plantrue annual cost, VAT incl.
Sage's genuinely free MTD for Income Tax app (formerly Sage Individual) for non-VAT-registered sole traders and landlords: digital records, receipt scanning, bank feeds, quarterly updates and the final declaration. No billing, no time limit. VAT-registered users need a paid Sage plan.
- Free plantrue annual cost, VAT incl.
Free basic service (freemium) — enough to comply with MTD for Income Tax via a simple cloud cashbook or spreadsheet bridging. Covers sole trader, UK and foreign property. Some premium add-ons are chargeable.
- Free plantrue annual cost, VAT incl.
Genuinely free bridging: quarterly updates filed from your own spreadsheet at no cost, no ads, no subscription. The vendor pledges the mandatory MTD steps will always stay free.
- Free plantrue annual cost, VAT incl.
Free bridging covering the quarterly updates, year-end adjustments, other income and the final declaration — for multiple businesses, at no cost.
- Free plantrue annual cost, VAT incl.
Free forever with full MTD compliance: automated bookkeeping and submissions for one business or income type (extra ones recorded and filed manually), bank import, spreadsheet import, invoicing and tax estimates. AI extras are capped at 3 uses a month.
- Free plantrue annual cost, VAT incl.
Free but tightly capped — up to 30 invoices/expenses and 1MB of storage. Realistic only for very low-volume affairs, such as a single simple rental.
- Free plantrue annual cost, VAT incl.
Free for a single property, including core MTD filing and simple accounting. More properties, agent access and the fuller feature set need Pro.
- Free with your banktrue annual cost, VAT incl.
Free for two years if you open a Zempler Bank business account.
- 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.
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.
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