Clear Books review: is it the best free MTD software?

Clear Books is UK-built accounting software. It stands out for one simple reason: it offers free MTD plans for both sole traders and landlords, with no time limit. That's rare. In this review we look at what the free plans include, what you give up, and whether the paid plans are worth it. We checked every price on Clear Books' own website in October 2026.

If you're not sure when Making Tax Digital (MTD) starts for you, try our Do I need MTD? checker. It takes about 30 seconds.

Price: how much does Clear Books cost?

Sole Trader Free £0, Sole Trader £5, Sole Trader Plus £15, Property Free £0, Property £5 a month, ex VAT.

Prices checked on Clear Books' website in October 2026, ex VAT. Any introductory offers can change, so confirm the live price before you buy.

The value here is excellent. You can meet your MTD duties for £0. If you'd rather not type in every transaction, £5 a month adds bank feeds. Only VAT-registered sole traders need the £15 plan.

Is Clear Books good for MTD for Income Tax?

Yes. Clear Books supports MTD for Income Tax for self-employment and property income, including foreign property on its Property plans. It keeps your digital records and sends quarterly updates to HMRC. Those are due by 7 August, 7 November, 7 February and 7 May (GOV.UK).

HMRC doesn't make its own MTD software, but says some commercial software is free for people with simple affairs (GOV.UK). Clear Books is one of the clearest examples.

Here's an illustration. Mo is a part-time handyman who also lets out one flat. His self-employed turnover is £14,000 and his rent is £19,000, so his qualifying income is £33,000. Both types of income count towards the threshold (GOV.UK). If that was his income for 2025 to 2026, he must use MTD from 6 April 2027. He has few transactions each month, so typing them in isn't a big job. Clear Books' free plans could cover him at no cost.

HMRC also won't give penalty points for late quarterly updates in the 2026 to 2027 tax year, so there is time to get used to it.

Is Clear Books good for landlords?

Yes. This is one of its strengths. Clear Books has dedicated Property plans, and the free one includes foreign property. Few free options cover overseas lets. The £5 Property plan adds bank feeds, which saves time if you have several rents coming in.

It doesn't offer the tenancy management or compliance reminders you get with specialist landlord software. For that, see our best landlord software guide or our Hammock review.

Clear Books key features

• Bank feeds: paid plans only. Bank feeds mean your bank transactions flow in automatically. On free plans you enter them by hand.
• Invoicing: you can create and send invoices to customers.
• Receipts: you can record expenses and keep receipts with them. The weak app makes this better done on a computer.
• VAT returns: on Sole Trader Plus (£15 a month) and above.
• CIS: yes, Clear Books lists CIS support. CIS (the Construction Industry Scheme) is where contractors take tax off subcontractors' pay. Your software should record CIS deductions, but check the details with HMRC or an accountant.
• Mobile app: rated only 2.9 on the UK App Store and 2.8 on Google Play in October 2026.

Is Clear Books easy to use?

On a computer, based on its features, it looks straightforward for simple records. On a phone, it's a different story. The app ratings of 2.9 and 2.8 are among the weakest in our comparisons. If you want to do your bookkeeping on the go, that's a real drawback. If you're happy to sit down at a laptop once a week, it matters much less.

Clear Books pros and cons

Clear Books compared with alternatives

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.

Sage Sole Trader also has a free plan, with a much better app (4.7 iOS) but limits on invoices and auto-categorisation. Read our Sage MTD review. Zoho Books' free plan includes VAT returns, though bank feeds start on its £12 plan. See our Zoho Books review. FreeAgent is free if you bank with NatWest, RBS, Ulster Bank or Mettle. For a full round-up, see our best free MTD software guide.

How we reviewed Clear Books

This is a desk review. We looked at Clear Books' features and plans as the provider describes them, and checked every price on its website in October 2026. We confirmed Clear Books appears on HMRC's list of software for MTD for Income Tax (GOV.UK). We checked app ratings on the UK App Store and Google Play. We have not done hands-on testing, so our view is based on features, pricing and user ratings. Clear Books pays us a commission if you sign up through our links, but this does not affect our score. Read how we test.

Final verdict: is Clear Books worth it?

If you want to meet MTD rules without paying, Clear Books is one of the best options available. It's free for both sole traders and landlords, covers foreign property, and its paid plans are cheap. The trade-offs are a poorly rated app and no bank feeds on the free plans. If you work mainly from a laptop and have simple affairs, it's excellent value. It scores 4.3 out of 5.

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