Free Software for Making Tax Digital

Can You Use Free Software for MTD?

Yes — there are free options available for Making Tax Digital for Income Tax (MTD ITSA), especially for landlords and sole traders with simple financial records. While many MTD-compatible platforms charge monthly fees, some providers offer free plans that cover the essentials, including:

• Digital record keeping

• Quarterly updates to HMRC

• End-of-period statements

• Final declarations

But be careful — not all "free" tools provide full functionality, and some may be free only under certain conditions.

Free MTD-Compatible Software Options (as of 2025)

Here are some of the best free or low-cost options that are HMRC-recognised for MTD ITSA:

1. Untied (Free Plan)

Overview: Untied is a mobile-first app designed for self-employed individuals and landlords. Their free plan allows you to manage digital records and prepare for MTD.

Key Features:

• MTD for Income Tax compatible

• Supports sole traders and landlords

• Submit quarterly updates and final declarations

• Easy to use

• Mobile app available ✅

Free Plan Includes: Limited access to MTD features and basic record keeping

Upgrade Option: Pro plans from £9.99/month for full access

2. Sage Accounting Individual (Free)

(In Development – Expected 2025 Launch)

Overview: Sage is working on a free version of its cloud accounting software specifically for individuals with simple income, such as landlords or sole traders.

Expected Features:

• Digital record-keeping

• Quarterly submissions

• End-of-period statements

• HMRC-recognised MTD integration

Why it's promising: Sage is a trusted name in UK accounting, and this version will offer a reliable, accessible solution at no cost.

Availability: Not yet live — keep an eye on HMRC updates

3. FreeAgent (Free via Mettle, NatWest, or RBS)

Overview: FreeAgent is a premium MTD-compliant software that’s completely free if you have a business bank account with:

• Mettle

• NatWest

• Royal Bank of Scotland (RBS)

Key Features:

• Fully HMRC-compatible

• Ideal for landlords and sole traders

• Tracks income, expenses, invoices, and mileage

• Mobile app ✅

• Submit directly to HMRC

How to Get It Free:Open a Mettle business bank account (no monthly fees) and get FreeAgent free for life.

4. HMRC Pilot-Compatible Spreadsheets + Bridging Software

(Free in some cases)

Overview: Some providers offer free spreadsheet templates that you can pair with bridging software to meet MTD requirements.

Important:You’ll still need to submit updates via bridging software that connects your spreadsheet to HMRC. While some bridging tools are free, most are paid or time-limited.

Example Providers:

• 123 Sheets

• SE_reports

• Absolute Excel Filer

Caution:Not beginner-friendly. Best for those confident with Excel and tax.

5. Open-Source & Beta Tools

(Limited Availability)

Some developers are experimenting with open-source solutions or beta-stage software tools for MTD, particularly through agent platforms. These tools aren’t yet broadly recommended, but may evolve by the April 2026 rollout.

What to Watch Out For with “Free” MTD Software

Not all free software is created equal. Here are some things to keep in mind:

• Limited Features: Free versions may not include all MTD ITSA submission types (e.g. final declaration).

• Trial Periods: Some tools advertise as "free" but are only free for 30 days.

• Manual Record-Keeping: Some require you to do all data input manually.

• Support Limitations: Free tools usually offer limited or no customer support.

Who Should Use Free Software?

Free MTD software might work well for you if:

• You have simple rental or self-employed income

• You’re comfortable with spreadsheets or mobile apps

• You want to test the process before committing to paid tools

• You already bank with Mettle, NatWest or RBS (for FreeAgent access)

If your affairs are more complex — such as having multiple properties, shared ownership, or foreign income — a paid platform or accountant may be the better route.

Final Thoughts

There are free options available for landlords and sole traders who need to comply with MTD ITSA — but it’s important to choose wisely.

For many users, the best approach is to start testing free software now so you’re ready before MTD becomes mandatory in April 2026.