The April 2026 and 2027 MTD deadlines are approaching faster than you think and they’re about to put a serious dent in your bank account.
With MTD, you’ll need software for every client. And let’s be honest, those subscriptions don’t come cheap and for accountants and tax agents handling multiple clients, the cost can easily jump into thousands of pounds per year. To make matter worse, most of the big name software providers limit the number of clients you can manage and charge extra beyond certain threshold.
But hey, don’ worry. As an accountants, we know exactly how painful that sounds. And most importantly, we’ve got you covered.
In this blog post, we’ve pulled together a list of HMRC approved software designed particularly for accountants and tax agents that are completely free to use.
Sounds fair. Let’s start with our first software.
Big Update: RentalBux Nears HMRC Approval
Trusted by UK’s leading property accountants and Tax specialists (UKPA) and thousands of accountants, RentalBux is the all-in-one property management and accounting platform.
Currently in the pipeline for HMRC approval, RentalBux will soon bring effortless MTD compliance to UK landlords and accountants with:
- Real-time income & expense tracking
- Automatic quarterly updates to HMRC
- Hassle-free year-end submissions
Don’t miss out on this update. Register today for 14-day free trial and be among the first to try RentalBux.
1. @Coconut
@Coconut is an user-friendly accounting platform designed to help accountants and tax agents successfully transition their customers to Making Tax Digital (MTD). It is based on simple yet powerful principle: make accounting simple for sole traders and landlords by giving accountants everything they need to manage clients and stay compliant with MTD.
Key Details of @Coconut
- Best for: Sole traders and landlords
- Accreditation: Officially recognised by HMRC as approved MTD for Income Tax software provider
- Mobile app availability: Available via mobile app and web browser access
- Supported income types: Sole trader income, UK property income, foreign property income
- Special feature: AI-powered receipt processing and automatic categorisation via mobile app
Pros of @Coconut
- Business banking partnership: Enjoy 24 months of free access when you open a Zempler business account with just a deposit of £100.
- 30-day free trial: Access all features without payment commitment before subscription begins
- Real-time bank integration: Securely connects with over 30 UK banks and credit cards for automatic transaction import
- Accountant collaboration: Built-in Partner Portal enables real-time record sharing with accountants
Cons of @Coconut
- Monthly subscription required: £9.95 per month (inc VAT) after 30-day trial period ends
- No perpetual free version: Unlike competitors, requires ongoing payment for continued access
- Sole trader focus: Does not serve VAT-registered businesses or other entity types
2. Clear Books Free
Clear Books Free is the free version of Clear Books. It provides essential MTD features like digital record keeping, tax filing and professional-grade accounting for free. It is best known for its excellent rating across several review sites like Trustpilot and AI-powered automated features such as intelligent transaction categorisation.
Key Details of Clear Books Free
- Best for: Small to medium-sized sole traders and property owners requiring full accounting features
- Accreditation: HMRC recognised for both MTD VAT and MTD Income Tax compliance
- Mobile app availability: Full mobile app with offline capability and cloud synchronisation
- Supported income types: Sole trader income, UK property income
- Special feature: AI-powered transaction coding that automatically categorises transactions and reduces manual entry
Pros of Clear Books Free
- Free to use: No cost for core features, making it ideal for small businesses and sole traders
- Unlimited users: All plans include unlimited user access with customisable permissions
- Direct VAT submission: Medium and Large plans submit VAT returns directly to HMRC
- Bank integration: Automated bank feeds from 70+ UK banks using secure open banking connections
- Flexible upgrade path: Option to move to a paid plan if more advanced features are needed
Cons of Clear Books Free
- Limited multi-currency: Multi-currency accounting only available on Large plan (£36/month)
- No cash flow forecasting: Platform does not offer automated cash flow projection features
- No access to full reporting tools: Only basic reports are included; advanced financial reports require an upgrade
- No MTD VAT submissions: VAT registered businesses must upgrade to a paid plan
3. FreeAgent
FreeAgent is a cloud based accounting software that supports both MTD for VAT and MTD for Income Tax Self Assessment (ITSA). It is based on simple motto: spotlight what matters most and automate admin for small businesses. It is best known for its user-friendly design with professional grade functionality and its ability to provide sophisticated features without sacrificing ease of use.
Key Details of FreeAgent
- Best for: Established accounting practices and bookkeepers serving diverse client bases
- Accreditation: HMRC-recognised for MTD VAT and MTD Income Tax (both agents and businesses)
- Mobile app availability: Available with full feature access
- Supported income types: Sole trader income, UK property income
- Special Feature: Dedicated FreeAgent for Landlords platform available
Pros of FreeAgent
- Free with select bank accounts: Get FreeAgent at no cost if you have a business current account with NatWest, RBS, Ulster Bank or a Mettle account
- Established track record: Founded in 2013 with proven experience in UK accounting software market
- Comprehensive integrations: Direct connections with PayPal, Stripe, GoCardless, and 40+ business apps
- API access included: Full API functionality available across all plans for custom integrations
Cons of FreeAgent
- Optional add-ons may cost extra: Features like unlimited receipt and bill capture or Amazon integration may require additional payment
- Limited landlord features: Platform primarily designed for business accounting rather than property management
- Learning curve requirement: Professional features require time investment to master effectively
- Limited support for growing businesses: As your needs expands (e.g. VAT, payroll, or complex reporting), you may need to upgrade plan.
4. QuickFile Accounting Software for MTD IT
QuickFile is a UK-based, cloud accounting software platform designed primarily for small to medium sized businesses, freelancers, accountants and tax agents. It is fully HMRC-recognised and supports Making Tax Digital (MTD) for both VAT and the upcoming Income Tax Self Assessment (ITSA) requirements.
Key Details of QuickFile Accounting Software
- Best for: Small businesses and accountants managing budget-sensitive clients
- Accreditation: Listed on HMRC’s Software Choices page, supporting MTD ITSA pilot scheme
- Mobile app availability: iOS and Android apps for receipt scanning and mobile access
- Supported income types: Sole trader income, UK property income
- Special Feature: Fully branded client portal that lets your clients view and pay documents
Pros of QuickFile Accounting Software
- Genuinely free for small businesses: Completely free for accounts with under 1,000 nominal transactions per 12 months
- No user limits: Unlimited users included on all plans including free tier
- Comprehensive MTD support: Full MTD VAT and Income Tax compliance included in free version
- Mobile receipt scanning: iOS and Android apps with OCR technology for expense capture
- Payment processor integrations: Direct connections with Stripe, PayPal, GoCardless, and major UK payment systems
Cons of QuickFile Accounting Software
- Transaction limit threshold: Free plan restricted to 1,000 nominal transactions per rolling 12-month period
- Paid upgrade required: Large (£45/year) and Extra Large accounts automatically charged for excess transactions
- Limited advanced features: Multi-currency, project accounting, and advanced reporting require paid plans
- Bank feed charges: Automated bank feeds cost additional £15 + VAT per year
5. Sage Individual (Free)
Sage Individual (free) is a free web-based accounting solution offered by Sage for Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA). It is designed specifically for self-employed sole traders with basic needs.
Key Details of Sage Individual (Free)
- Best for: Non-VAT registered sole traders with basic needs
- Accreditation: HMRC-recognised MTD-ready software with Treasury backing for free provision
- Mobile app availability: Access through Sage’s established mobile platform infrastructure
- Supported income types: Sole trader income (specifically designed for non-VAT registered businesses)
- Special feature: Agent access for accountants and tax professonals
Pros of Sage Individual
- Treasury-backed free provision: Government arrangement ensures long-term availability at no cost
- Enterprise-grade security: Two-factor authentication, data encryption, and professional-level security features
- HMRC direct integration: Seamless quarterly submission process with automated workflow capabilities
- MTD compliance guarantee: Purpose-built for MTD requirements with ongoing compliance updates
Cons of Sage Individual
- Non-VAT registered only: Exclusively designed for sole traders who are not VAT registered
- No property income support: Does not handle rental or property income streams
- Limited business types: Cannot be used by partnerships, limited companies, or VAT-registered entities
- Feature scope restriction: Basic functionality compared to full Sage Accounting products
6. Self Assessment Direct
Self Assessment Direct is a free online service designed to help individuals and agents submit Self Assessment Tax Returns in line with Making Tax Digital (MTD) requirements. The platform focuses on simplicity and accessibility, particularly for users who prefer spreadsheets.
Key Details of Self Assessment Direct
- Best for: Accounting practices transitioning existing self-assessment clients to MTD
- Accreditation: HMRC-approved for MTD Income Tax with bridging capabilities
- Mobile app availability: Web-based platform with mobile-responsive design
- Supported income types: Sole trader income, UK property income, foreign property income
- Special feature: Connects existing records and workflows to MTD submission requirements
Pros of Self Assessment Direct
- Quarterly submission automation: Direct HMRC connection for reliable quarterly update processing
- Flexible tax periods: Supports both standard (6 April – 5 April) and calendar (1 April –31 March) update periods
- Web-based and cross-platform: Works on Windows, Mac, Linux, Android, and iOS without requiring installation
- Bridging software included: Allows users to submit data directly from spreadsheets, ideal for those who prefer Excel over full accounting software
Cons of Self Assessment Direct
- Limited standalone functionality: Focuses on compliance bridging rather than comprehensive business management
- Requires existing systems: Must be used alongside other record-keeping or accounting software
- Basic reporting capabilities: Does not provide advanced financial reporting or business analytics
- Professional-only design: Interface and features primarily suited for tax professionals rather than end users
7. TaxNav
TaxNav is a UK-based MTD software. It is based on simple motto: make taxes simple and it is delivering on that with its simple platform that lets users manually enter or link spreadsheets, and it uses AI to reduce mistakes and give real time tax estimates.
Key Details of TaxNav
- Best for: Users seeking maximum simplicity and guided tax compliance workflows
- Accreditation: HMRC-recognised MTD software with bridging capabilities
- Mobile app availability: Not available
- Supported income types: Sole trader income, UK property income, foreign property income
- Special feature: Step-by-step processes for MTD submission and record maintenance
Pros of TaxNav
- Browser based: No downloads or installation required
- Purpose-built for self-employed and landlords: Designed specially for users with income from self-employment or property
- Smart Reminders: Keeps you on track with HMRC deadlines and requirements
- Built by Experts: Developed by the team behind MD for VAT, with deep experience in HMRC systems
Cons of TaxNav
- Basic feature set: Simplicity focus limits advanced accounting and business management functionality
- Guided workflow restrictions: Step-by-step processes cannot accommodate unique or complex business requirements
- Limited scalability: Not designed for high-volume transactions or multi-entity business structures
- Minimal professional tools: Lacks sophisticated features required by established accounting practices
8. Zoho Books
Zoho Books is a cloud-based accounting software that enables businesses to maintain digital records, automate tax calculations, and submit returns directly to HMRC via a single platform. It supports both VAT and Income Tax submissions thereby meeting all HMRC digital record keeping and reporting requirements.
Key Details of Zoho Books
- Best for: Accounting firms and small businesses
- Accreditation: HMRC-recognised for both MTD VAT and MTD Income Tax compliance
- Mobile app availability: Available for iOS and Android platforms
- Supported income types: Sole trader income (MTD Income Tax feature currently available on request)
- Special feature: Connects with 40+ Zoho business applications
Pros of Zoho Books
- Generous transaction limits: Up to 1,000 invoices per year included in free plan
- Mileage & CIS Tracking: Useful for contractors and service-based businesses
- Advanced Reporting: Offers P&L, balance sheet and over 50 detailed reports
- MTD-Ready: Supports MTD for Income Tax and Self Assessment (SA103F & SA103S)
Cons of Zoho Books
- Limited users: Only suppors 1 user and 1 accountant, which may not be enough for growing teams
- No customisation: Lacks custom fields, reports, and journal templates available in higher tiers
- No workflow automation: Advanced automation and approval workflows are only in paid plans
- MTD Income Tax by request only: Advanced MTD features currently require special request rather than standard access
- Ecosystem dependency: Maximum value requires adoption of broader Zoho business application ecosystem
Quick Comparison of Free HMRC-Approved MTD Software for Accountants & Tax Agents
Conclusion
MTD is undoubtedly expensive, and most software providers will happily charge you hundreds, if not thousands every year.
But hey, it doesn’t have to be that way. There are free HMRC approved MTD software options built specially for accountants and tax agents like you. Sure, they come with a few limitations. But they get the job done until you are ready to invest in premium software.
So, don’t wait. Check out the detailed breakdown above, explore the comparison table, and pick the one that best fits your needs.
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