MTD Software Finder

FreeAgent vs Zoho Books

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

Zoho Books is the cheaper starting point at £0 (VAT included) versus from £144/yr for FreeAgent — but the cheapest plan only wins if it covers the income types you actually have.

FreeAgentZoho Books
True annual cost fromfrom £144/yr£0
Self-employmentYesYes
Property / rentYesYes
Keeps your spreadsheetNoNo
Accountant accessYesYes
Typefull cloud accountingfull cloud accounting
HMRC statusRecognisedRecognised
Price verified2026-08-102026-08-10

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

Zoho Books

Full cloud accounting with a genuinely free plan for all business types (with invoice limits) — rare among the serious tools. Strong if you're already in the Zoho ecosystem.

  • Anyone wanting free full accounting
  • Existing Zoho users

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.