Yes, there is free accounting software in the UK that can file to HMRC under Making Tax Digital (MTD). But "free" nearly always comes with a catch: a cap on invoices or transactions, a requirement to bank with a particular bank, single currency or paid add-ons for the features you actually need, such as bank feeds or MTD filing.
Searches for "free accounting software" and "accounting software free" are both up 8% this quarter, and "small business accounting software free download" is up 180%. With MTD for Income Tax now live for sole traders and landlords over £50,000 (falling to £30,000 from April 2027), many people are looking for the cheapest way to comply. Here's what's genuinely free, what isn't, and how to decide.
Does HMRC provide free accounting software?
No. For MTD you need commercial software that connects to HMRC. HMRC doesn't make its own bookkeeping software, and its guidance warns that some free products have restrictions on how they can be used.
HMRC's software finder on GOV.UK lets you filter for products that suit your income types. Some products listed there are free, or free for simple cases. Always read what "free" covers before you sign up.
Free accounting software options in the UK
These were the main genuinely free routes in October 2026.
| Option | Free if… | Main catch |
|---|---|---|
| FreeAgent | You bank with NatWest, RBS or Ulster Bank (or Mettle, for some business types) | Otherwise £10–£33 a month; free only while you keep the account |
| QuickFile | Your ledger is very small | Bank feeds and MTD bridging/Income Tax features cost extra |
| Spreadsheet + bridging software | You keep records in a spreadsheet | The bridging software usually costs something |
FreeAgent is a full product and is free for life if your business current account is with NatWest, RBS or Ulster Bank. Mettle customers get it free too if they're a limited company, sole trader or landlord and make at least one transaction a month. If you change bank, you start paying.
QuickFile is free for small ledgers, measured by the number of entries. Busy businesses quickly go over the limit, and features such as automatic bank feeds are paid extras.
Check each provider's own pricing page before you commit. Free plans change more often than paid ones.
The hidden costs of free accounting software
Free software isn't always the cheapest choice over a year. Watch out for:
- Limits you grow into. Invoice caps, entry caps and single-user plans are designed to make you upgrade.
- Paid add-ons. Bank feeds, payroll, receipt capture and extra users are often charged separately.
- Bank lock-in. "Free with your bank" means you pay as soon as you switch banks.
- Single Currency Allowing multi currency posting brings complexity and you need to sign up the highest tiers to have this feature.
- Limited support. Free plans may get email-only or community support, which hurts at a filing deadline.
- Your accountant's time. If your accountant doesn't know the product, they may charge more to work with it.
- Switching later. Moving software mid-year takes time. Picking something you'll keep is worth a few pounds.
Free accounting software downloads: be careful
The 180% rise in "small business accounting software free download" is worth a warning. Before you download free accounting software:
- Check it's on HMRC's software list. Many free downloads can't file VAT returns or MTD quarterly updates, so you'd need extra software anyway.
- Download only from the provider's own website, never from a file-sharing site. Cracked or repackaged software is a common way to spread malware, and your accounts hold bank and tax details.
- Check it gets updated. Tax rules and HMRC's systems change every year. Software that stopped being updated will stop working with HMRC.
- Think about backups. With desktop software, if your computer fails, your records go with it unless you back them up.
For most small businesses, online accounting software that runs in your browser is the simpler choice. There's nothing to download, it updates itself, and your records are backed up.
When free makes sense, and when it doesn't
Free is probably fine if:
- You're a very small sole trader or landlord with a handful of transactions a month.
- You already bank with a bank that gives you FreeAgent free.
- Your needs fit comfortably inside the free plan's limits.
Paying a little is usually better if:
- You're a limited company, which needs Corporation Tax and Companies House accounts too.
- You run payroll, hold stock, or invoice in other currencies.
- You want bank feeds included and proper support when a deadline is close.
If you're weighing up low-cost paid options, see our guide to cheap accounting software.
Free for 30 days with AccLedger
AccLedger isn't free forever, but it is low-cost with no feature tiers, and you can try everything free first:
- 30-day free trial, no card needed, with full access, and you can file VAT returns during the trial.
- Then £5/month for landlords, £7.50/month for sole traders and £10/month for limited companies, excluding VAT.
- Bank feeds, unlimited invoices and MTD are included on every plan.
- No download: it runs in your browser on Mac or Windows.
- Only need to file a VAT return? Ad-hoc VAT filing is £4.99 + VAT per return, with no subscription.
See pricing or read how to choose small business accounting software.
Start a 30-day free trial — no card needed.
FAQs
Is there completely free accounting software for MTD? Yes. Zoho Books has a free plan with MTD VAT and MTD Income Tax, and FreeAgent is free with NatWest, RBS, Ulster Bank and some Mettle accounts. Both have conditions, so check they fit your business.
Can I use a spreadsheet instead of accounting software? Yes, if you link it to HMRC with bridging software. The spreadsheet is your digital record, and the bridging software sends the figures.
Is free accounting software safe? Products from established providers are generally safe. Avoid downloads from unofficial sites, and turn on two-step verification.
Does HMRC have free software for MTD Income Tax? No. HMRC says you need compatible commercial software, and points to its software finder, which includes some free products.
What's the catch with free accounting software? Usually limits (invoices, entries, foreign currency or users), paid add-ons such as bank feeds, or a requirement to bank with a specific bank.
Can I start free and switch later? Yes, but switching mid-year takes time. Starting with software you'll keep, even if it costs a few pounds a month, is often easier.
This article is general guidance based on HMRC guidance and providers' published plans as of October 2026. It is not tax advice. Free plans and prices change often; check each provider's website before you sign up.