Free MTD software: the best genuinely free options in 2026

One of the most common questions about Making Tax Digital is whether you have to pay for software. The short answer is no. HMRC doesn't provide its own software, but several companies offer free plans that let you keep digital records and send quarterly updates. Each free plan has limits, though, and some "free" options have costs hidden in the small print.

We've rounded up the genuinely free MTD software for sole traders and landlords, explained what each one leaves out, and checked every price in October 2026. We've also included one very cheap option for spreadsheet users.

Does HMRC provide free MTD software?

No. HMRC says you must use commercial software that works with MTD for Income Tax. It adds that some products are free for people with simple tax affairs, and that it does not recommend any particular product (GOV.UK). HMRC's own software finder listed 171 products when we checked (GOV.UK).

You might have heard of HMRC's free tool for payroll, called Basic PAYE Tools. That is for paying employees, not for MTD for Income Tax. There is no HMRC equivalent for quarterly updates.

The best free MTD software at a glance

Prices exclude VAT unless stated and were checked on each provider's website in October 2026. Introductory offers change often, so always confirm the live price. App ratings are from the UK App Store and Google Play in October 2026.

Free MTD software reviewed

Clear Books is the most straightforward free option. It has a free Sole Trader plan and a free Property plan, both with MTD for Income Tax included, and neither has a time limit. The Property plan also covers foreign property, which is rare. Clear Books also supports CIS on its plans.

Watch out for: the free plans have no bank feeds (automatic imports of your bank transactions), so you type everything in. The app is poorly rated at 2.9 on iOS. Paid plans with bank feeds start at £5 a month ex VAT.

Sage Sole Trader Free covers MTD for Income Tax for sole traders and landlords who aren't VAT registered. It comes from one of the best-known names in UK accounting, and the app is rated 4.7 on iOS and 4.8 on Android. Read our Sage review for more.

Watch out for: the free plan limits invoices and automatically sorted transactions each month. Removing the limits costs £7 a month. VAT needs Sage Accounting, from £20 a month ex VAT.

Zoho Books Free is unusually generous. It includes MTD for Income Tax and VAT returns for one user, with up to 1,000 invoices a year. Its apps score 4.8 on both stores. If you're VAT registered and want to pay nothing, this is the one to try.

Watch out for: bank feeds start on the £12 a month Standard plan, so the free plan means typing or importing transactions yourself.

FreeAgent is full accounting software, not a cut-down free plan. It's free with a NatWest, RBS or Ulster Bank business account, or with Mettle if you make at least one transaction a month. You get bank feeds and a running tax estimate. FreeAgent pays us nothing.

Watch out for: it's only free while you keep the eligible account. Otherwise it costs £19 a month for sole traders or £10 for landlords, ex VAT.

Starling's sole trader account has no monthly fee and includes MTD for Income Tax tools in the app. If all your business money already runs through Starling, it's a tidy way to keep records and file in one place. Its app is rated 4.9 on iOS.

Watch out for: fees apply to cash deposits, and Starling does not state landlord support.

ANNA Money is a business account with tax admin built in. MTD filing is included on every plan, including Free. It also has a landlord MTD tool that ANNA says is free for 2026 to 2027.

Watch out for: the free plan is free for the first £1,000 coming in each month, then charges 0.95%. On £3,000 a month coming in, that's about £19 a month, so a paid plan may work out cheaper. Grow costs £12.90 a month ex VAT.

Landlord Studio's MTD Go plan is free for 1 to 3 units. Instead of a monthly fee, you pay £5 each time you send an MTD submission. It's built for landlords, so it understands rent, repairs and properties.

Watch out for: four quarterly updates plus a tax return could mean several £5 charges a year, so it's "pay as you go" rather than free. Landlord Studio shows prices inconsistently on its site, so check before signing up.

Tide's free plan includes accounting tools inside its business banking app, rated 4.8 on iOS. If you already bank with Tide, it's the easiest place to start.

Watch out for: Tide shows different sole trader prices on different pages, so check what you'd pay. VAT is only on the Pro and Max plans, and Tide says it is not suitable for CIS users.

123 Sheets isn't free, but at £19.75 a year per taxpayer ex VAT it's close. It's bridging software (a tool that links your spreadsheet to HMRC), so you keep using Excel or Google Sheets. It covers UK and foreign property too. 123 Sheets pays us nothing.

Watch out for: the price we saw included 50% off the first year, so expect it to rise. There's no app. Compare it in our MTD bridging software guide.

Free vs paid MTD software: what do you give up?

Free plans meet HMRC's rules, so you won't be breaking the law by using one. What you give up is convenience. Here's a typical comparison, based on the plans above:

For someone with a few dozen transactions a quarter, typing them in is fine. If you have hundreds, a £5 to £12 a month plan with bank feeds can save hours.

What hidden costs should I watch for?

• Per-submission fees: Landlord Studio's MTD Go charges £5 per MTD submission.
• Transaction fees: ANNA's free plan charges 0.95% on money in above £1,000 a month.
• Bank conditions: FreeAgent is only free while you keep an eligible account. Mettle needs at least one transaction a month.
• Cash deposit fees: Starling charges to pay in cash.
• Intro prices: 123 Sheets' price included a first-year discount. Intro offers change often.
• VAT: most paid prices are quoted ex VAT. If you're not VAT registered, you pay 20% on top.
• Free plans without MTD: some well-known free plans don't include MTD for Income Tax at all. Pandle Free (MTD is on the £5 Pro plan), Crunch Free and Lite, and August's free landlord plan all need an upgrade to file.

Which free MTD software is right for me?

Here's an illustration. Mo is a freelance illustrator who earned £22,000 in 2025 to 2026, plus £9,000 rent from one flat. His qualifying income is £31,000, because trading and rental income before expenses are added together (GOV.UK). That's over £30,000, so Mo must use MTD from 6 April 2027. He needs free software that handles both trading and property income, so Sage Sole Trader Free would suit him, as long as he stays within its monthly limits.

1. Bank with NatWest, RBS, Ulster Bank or Mettle? Use FreeAgent.
2. Bank with Starling, Tide or ANNA? Try the built-in tools first.
3. VAT registered? Try Zoho Books Free.
4. Landlord with 1 to 3 properties? Try Clear Books Property Free or Landlord Studio MTD Go.
5. Happy with your spreadsheet? Pay about £20 a year for 123 Sheets.

If you'd rather pay for an easier life, see our best MTD software for sole traders.

Who should not use free MTD software?

How we chose these

We looked at every free or near-free product we could find on HMRC's MTD for Income Tax list, then checked each plan's limits on the provider's own website in October 2026. We ranked them on how much you can genuinely do for free, landlord support, app ratings and hidden costs, based on our review of features, pricing and user ratings. Affiliate commission plays no part. FreeAgent and 123 Sheets pay us nothing. Read how we test.