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 verified2026-06-242026-06-24

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 / 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 the cheapest plan that covers a typical sole trader or landlord, VAT included, last verified 24 June 2026 (catalogue reconciled 24 June 2026). Links are affiliate links and never affect ranking. Not affiliated with HMRC; not tax advice.