MTD Software Finder

Coconut vs FreeAgent

Both are full cloud accounting tools for Making Tax Digital for Income Tax.

Coconut is the cheaper starting point at from £129.99/yr (VAT included) versus from £144/yr for FreeAgent — but the cheapest plan only wins if it covers the income types you actually have.

CoconutFreeAgent
True annual cost fromfrom £129.99/yrfrom £144/yr
Self-employmentYesYes
Property / rentYesYes
Keeps your spreadsheetNoNo
Accountant accessYesYes
Typefull cloud accountingfull cloud accounting
HMRC statusRecognisedRecognised
Price verified2026-08-102026-08-10

Coconut

Built from the ground up for sole traders and landlords under MTD — simple categorisation, no accounting jargon. Often supplied free through partner accountants.

  • First-timers who find accounting apps overwhelming
  • Landlords with a side trade

FreeAgent

Freelancer-favourite accounting with time tracking and project costing. Free for life with the right bank — which can make it the cheapest serious option by a mile.

  • NatWest / RBS / Ulster / Mettle customers (free!)
  • Contractors and freelancers

Not sure either is right? Use the finder to get a recommendation ranked by what it will actually cost you.

Prices are each tool's cheapest plan, VAT included, last verified 10 August 2026 (catalogue reconciled 10 August 2026). Links are affiliate links and never affect ranking. Not affiliated with HMRC; not tax advice.