FreeAgent

FreeAgent is HMRC-recognised for Making Tax Digital for Income Tax, and it’s free if you bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle. Otherwise, plans start from £19 a month.

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At a glance

FreeAgent is on HMRC’s official list of software recognised for Making Tax Digital for Income Tax. It’s best known for being free to NatWest, Royal Bank of Scotland, Ulster Bank and Mettle business banking customers, which makes it one of the cheapest ways to get MTD-ready software if you already bank with one of those providers.

Free

£19/m

Standalone (50% off for 6 months)

With NatWest/RBS/Mettle

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Is FreeAgent HMRC-recognised for MTD?

Yes. FreeAgent is listed on HMRC’s official register of software recognised for Making Tax Digital for Income Tax. It lets you keep digital records and submit quarterly updates and your final declaration directly to HMRC from within the software.

How does FreeAgent handle MTD for Income Tax?

Digital record keeping: bank feeds import transactions automatically, and you can log expenses and issue invoices from within FreeAgent, so records are kept digitally as you go
Quarterly updates: FreeAgent totals your income and expenses into the quarterly summary format HMRC requires, and submits directly from the software
Final declaration: at year end, FreeAgent pulls together your four quarterly updates plus any other income or reliefs so you can complete and submit your final declaration by 31 January
Tax timeline: FreeAgent’s Tax Timeline feature shows upcoming deadlines and an estimate of tax owed, useful for keeping track of the more frequent MTD reporting cycle

Key MTD-specific features

Direct HMRC submission for quarterly updates and the final declaration
Free access for NatWest, Royal Bank of Scotland, Ulster Bank and Mettle business current account customers
Tax Timeline showing deadlines and estimated tax liability throughout the year
Automatic bank feeds to keep digital records current with minimal manual entry
Built-in invoicing and expense tracking that feed straight into your MTD records

Which FreeAgent plan do you need for MTD for IT?

FreeAgent’s pricing comes down to which bank you use.

Free with NatWest, RBS, Ulster Bank or Mettle

If you hold one of these four accounts:

Free for as long as you keep your business account (with Mettle, you need to make at least one transaction a month)
Fully MTD for IT ready, with no feature restrictions versus the paid version
Access through your existing online banking, no separate sign-up

Standalone - £19/month, currently 50% off for 6 months

If you bank elsewhere:

Full access to FreeAgent’s MTD for IT and accounting features
Real-time tax estimates
Self Assessment filing to HMRC
Time tracking
Mobile app

This is a current promotional rate - always check FreeAgent’s pricing page for the latest terms before signing up.

Pros and cons

Pros:

Free for as long as you keep a NatWest, RBS, Ulster Bank or Mettle business account (Mettle needs at least one transaction a month), making it one of the cheapest HMRC-recognised options available
HMRC-recognised, covering digital records, quarterly updates and the final declaration in one place
Tax Timeline feature gives an ongoing view of deadlines and estimated tax owed
Popular with UK sole traders and freelancers, so support and guides are easy to find
Built-in invoicing alongside MTD compliance, useful if you don’t already have a separate invoicing tool

Cons:

Only free for customers of NatWest, RBS, Ulster Bank or Mettle - everyone else pays a monthly subscription
Paid plans start from £19 a month, in line with other HMRC-recognised accounting platforms
Feature set is more geared towards freelancers and small limited companies than larger sole trader operations
Bank feed automation works best when your business banking is fully connected - manual entry is needed otherwise

Who is FreeAgent best for MTD for Income Tax?

If you already bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle, FreeAgent is hard to beat for MTD for Income Tax: it’s HMRC-recognised, free for as long as you keep your account, and handles digital records, quarterly updates and the final declaration in one place. If you bank elsewhere, it’s worth comparing FreeAgent’s paid pricing against other HMRC-recognised software before deciding. For a broader look at FreeAgent as an everyday accounting tool, see our full FreeAgent review elsewhere on this site.

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Frequently asked questions

Is FreeAgent free for Making Tax Digital for Income Tax?

It’s free for as long as you hold a NatWest, Royal Bank of Scotland, Ulster Bank or Mettle business current account (with Mettle, you need to make at least one transaction a month). Otherwise, paid plans start from £19 a month.

Does FreeAgent submit quarterly updates and the final declaration directly to HMRC?

Yes. FreeAgent is HMRC-recognised for MTD for IT and lets you submit both quarterly updates and your final declaration from within the software.

Do I need a NatWest, RBS, Ulster Bank or Mettle account to use FreeAgent?

No, but if you don’t hold an account with one of those banks, you’ll need to pay for a FreeAgent subscription rather than getting it free.

Can FreeAgent help me estimate what tax I’ll owe during the year?

Yes. FreeAgent’s Tax Timeline feature shows an ongoing estimate of tax owed alongside upcoming MTD deadlines.

When do I need to start using MTD-compliant software like FreeAgent?

Sole traders with qualifying income above £50,000 needed to comply from April 2026. Those with income between £30,000 and £50,000 must join from April 2027.

Compare MTD software for sole traders

FreeAgent is one option among several worth comparing. Browse the full MTD Software directory to compare it against Xero, QuickBooks, Sage and other HMRC-recognised options.

Prices and offers correct at time of publication. Always check the FreeAgent website for current pricing and promotional terms before signing up.