Free MTD software with a business bank account
Several business accounts come with HMRC-recognised Making Tax Digital software built in, at no extra cost. If you'd open a separate account for your business anyway, that can be the lowest-effort way to comply: your income and spending are already in the account, so there's far less to type up each quarter.
Our main rankings leave these deals out, because each one needs an account you may not have yet. Here they're listed widest cover first (tools that handle both self-employment and rental income), then deals that stay free ahead of ones that run out, then A to Z. The software is free, but check the account's own fees before you switch — and if you'd rather keep your current bank, several tools are free on their own (see our free MTD software list).
- Freetrue annual cost, VAT incl.
Free MTD for Income Tax filing built into ANNA's business account. If you bank with ANNA (the basic account is free), it files your quarterly updates and final declaration for sole-trader and UK property income at no cost.
- Freetrue annual cost, VAT incl.
Free for life if you have a NatWest, Royal Bank of Scotland or Ulster Bank business account, or use Mettle. Freelancer-favourite accounting with time tracking and project costing.
- Freetrue annual cost, VAT incl.
Free MTD for Income Tax tool (powered by BankiFi) built into the Lloyds Business Account. Income and expenses pull through from your Lloyds banking, with quarterly updates to HMRC at no extra cost.
- Freetrue annual cost, VAT incl.
Free MTD for Income Tax filing built right into the Monzo Business app, powered by Sage. If you bank with Monzo, you can file quarterly updates from the same place you run your money — at no extra cost.
- Freetrue annual cost, VAT incl.
Free MTD for Income Tax filing built into Starling business accounts. Categorise transactions as they happen and submit quarterly updates to HMRC without leaving your banking app.
- Free for 2 yearstrue annual cost, VAT incl.
Free for two years if you open a Zempler Bank business account. Built from the ground up for sole traders and landlords under MTD — simple categorisation, no accounting jargon.
- Freetrue annual cost, VAT incl.
Free, HMRC-recognised MTD for Income Tax tools built into the Tide app for members: digital records, quarterly updates and direct filing to HMRC. Sole-trader income only.
Frequently asked questions
- Which banks give you free MTD software?
- ANNA Money, Lloyds Bank, Monzo, Starling Bank and Tide build MTD for Income Tax software into their own business accounts. FreeAgent is free for life if you have a NatWest, Royal Bank of Scotland or Ulster Bank business account, or use Mettle. Coconut is free for two years if you open a Zempler Bank business account. Every one is on HMRC's list of recognised software.
- Is it worth opening a business account just for free MTD software?
- Only if the account suits you anyway. Several HMRC-recognised tools are free without switching banks — see our free MTD software list. The real draw of a bank-linked tool is convenience: your transactions are already there, so most of the record-keeping happens as you spend.
- Do these work for landlords?
- Most do. Tide Accounting covers sole-trader income only; the rest handle UK rental income as well.
- Is a business account the same as a bank account?
- Not always. Some business accounts are e-money accounts rather than bank accounts, and e-money isn't covered by the Financial Services Compensation Scheme (FSCS) — the provider has to safeguard your money instead. Check which kind an account is before you move money into it.
- What happens if I switch banks later?
- The free software comes with the account, so if you close the account you'd normally have to pay for the software or move to another tool. Coconut's free deal also ends after 2 years. Check you can export your records before you rely on one.
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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.