Is My Tax Digital really free?

Yes — it's free for MTD for Income Tax with no tiers, no property limit and no expiry, rather than charging filers a subscription.

Is My Tax Digital HMRC-recognised?

Yes, for both Making Tax Digital for Income Tax and for VAT.

Does it cover landlords as well as the self-employed?

Yes — it supports both property and self-employment income, and agents acting for clients.

Do I have to keep a spreadsheet?

No. You can bridge from a spreadsheet if you keep one, or record transactions directly in its accounting mode if you don't.

My Tax Digital

Full cloud accounting · by Open Answers · HMRC-recognised

£0

true annual cost, VAT incl.

A genuinely free, HMRC-recognised MTD tool from Open Answers. Works as either spreadsheet bridging or simple in-app accounting, and covers both self-employment and property income at no cost.

Visit Open Answers →Check it fits your situation

Our verdict

My Tax Digital is the rare thing in this market: genuinely free, with no premium tier waiting to catch you out. It's HMRC-recognised for MTD for Income Tax and covers both self-employment and property income, working either as bridging from your own spreadsheet or as simple in-app accounting. It won't match the polish or the bank-feed automation of the paid cloud suites, but if your affairs are straightforward and your priority is paying nothing to comply, it's hard to argue with free.

At a glance

Self-employment: Yes
Property / rent: Yes
Keeps your spreadsheet: No
Accountant access: Yes
Price verified: 2026-07-01
HMRC status: Recognised

Plans & true annual cost

Plan	Self-emp.	Property	Per year (incl. VAT)
Free 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.	✓	✓	£0

Pros & cons

What's good

Genuinely free for MTD for Income Tax — no tiers, no property limit, no expiry
HMRC-recognised for both Income Tax and VAT
Works as bridging or as simple accounting, so it suits spreadsheet-keepers and from-scratch users alike
Covers both self-employment and property income
Agent access, so an accountant can help

What's not

Lighter on features and automation than the paid cloud-accounting suites
No bank feeds doing the data entry for you
A smaller operation than the big-brand vendors

Who it's for

Anyone who wants to comply for £0
Sole traders and landlords with straightforward affairs

…and who should look elsewhere

People who want bank-feed automation and rich bookkeeping — a paid suite earns its fee there
Anyone who'd rather pay for hand-holding and a large support operation

Common mistakes to avoid

Assuming free must mean it isn't recognised — check the HMRC list and you'll find it
Reaching for a paid tool out of habit when free already covers a simple situation

Frequently asked questions

Is My Tax Digital really free?: Yes — it's free for MTD for Income Tax with no tiers, no property limit and no expiry, rather than charging filers a subscription.
Is My Tax Digital HMRC-recognised?: Yes, for both Making Tax Digital for Income Tax and for VAT.
Does it cover landlords as well as the self-employed?: Yes — it supports both property and self-employment income, and agents acting for clients.
Do I have to keep a spreadsheet?: No. You can bridge from a spreadsheet if you keep one, or record transactions directly in its accounting mode if you don't.

Alternatives to consider

Zoho Books My Tax Digital vs Zoho Books →
Another free option with a fuller accounting feel, within its free-plan limits.
123 Sheets
Very cheap bridging if you'd rather a paid tool built purely around your spreadsheet.

Compare My Tax Digital with

Pricing for My Tax Digital was last verified on 1 July 2026 against the vendor's page; the catalogue was reconciled 1 July 2026. Its cheapest plan's true annual cost is free. Links are affiliate links and never affect ranking. Not affiliated with HMRC; not tax advice.

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