Free Making Tax Digital software: every free option on HMRC's list

Is there free MTD software?

Yes, but not from HMRC. HMRC doesn't make software for Making Tax Digital. Instead it keeps a list of products that have passed its checks, and you can search it on GOV.UK with HMRC's software finder. Some of those products have a free version.

Whatever you use has to do three things: keep digital records of your income and costs, send a quarterly update every three months, and send your tax return at the end of the year. You can do all three in one product, or use more than one.

Every free version on HMRC's list

From HMRC's list of 163 products, checked 29 October 2026: the ones marked as having a free version that covers sole traders. HMRC doesn't recommend any of them, and a free version can have limits, so check the company's own site.

24 free versions that send quarterly updates and the tax return

9 free versions that send quarterly updates only

"Keeps records" software is where you enter your income and costs. "Spreadsheet link" means bridging software that reads a spreadsheet you keep yourself. "Either" products do both.

Free options worth looking at first

• Sage Sole Trader & Landlord Free. A free plan from one of the big names. It covers 25 auto-categorised transactions and five sales invoices a month, sends quarterly updates and the tax return, and you can move to the paid plan if you outgrow it.
• FreeAgent, if you bank with NatWest, RBS or Ulster Bank, or use Mettle. Full accounting software, free with a business current account from those banks, or with Mettle if you make at least one transaction a month. It sends quarterly updates and the tax return.
• Your bank's own app. Starling includes its Accounting Essentials free with the sole trader account, and Monzo, Tide and Lloyds Bank all have products on HMRC's list with a free version. Check which updates each can send: on HMRC's list, Starling, Tide and Lloyds Bank send quarterly updates only.
• A spreadsheet with free bridging software. If you already keep good records in a spreadsheet, TaxUpdates and flonancial have free versions that send both the quarterly updates and the tax return.

What free usually means

A free version is usually a cut-down plan. Before you put a year's records into one, check:

• The monthly limits. Caps on transactions, invoices or bank accounts are common, and a busy month can go over them.
• Every income source. If you also let out a property, the software has to cover rental income too.
• Your accounting period. Most sole traders use the tax year, 6 April to 5 April. If your accounts run to 31 March, check the software supports calendar update periods.
• Getting your records out. If you switch later, you want to export everything, not start again.

The check most people miss: the tax return

Under Making Tax Digital, your year-end tax return also goes through software, not HMRC's old online form. Several free versions, including some from banks, only send the quarterly updates. That's fine if you know, but it means finding a second product for the return. If you'd rather sort it once, pick from the first table above.

Free or paid?

Free works well for a simple business that stays within the limits. Paid plans remove those limits and usually add more, such as receipt capture. Our comparison of MTD software shows what the main paid plans cost, and our Making Tax Digital guide explains the quarterly updates.

Common questions

Does HMRC provide free MTD software?

No. HMRC doesn't provide software for Making Tax Digital for Income Tax. It keeps a list of products that work with it, and some of those have a free version.

Can I keep using a spreadsheet for free?

Yes, if you pair it with bridging software, which reads your spreadsheet and sends the figures to HMRC. A few bridging products on HMRC's list have a free version, including TaxUpdates and flonancial, which can send the tax return too.

Is free software enough for a tradesperson?

Often, if your business is simple. The usual limits are on how many transactions you can record or invoices you can send each month, and a busy month can push you onto a paid plan. If you also want quotes, jobs and certificates in one place, compare the paid job apps as well.

What's the catch with free software from a bank?

It's normally for that bank's business account customers, and some bank apps only send quarterly updates, not the tax return. Check what happens to your records if you move banks.

When do I need the tax return part?

For the first tax year you're in MTD. If you joined in April 2026, that's the 2026/27 return, due 31 January 2028. If you join in April 2027, it's the 2027/28 return, due 31 January 2029.

More guides

• Self-employed tax rates 2026/27: what you'll pay on your profit
• Self-assessment deadline: 31 January 2027
• Can't pay your self-assessment tax bill? How an HMRC payment plan works
• Payments on account: why your January tax bill is bigger than you expected

Sources

1. Find software that works with Making Tax Digital for Income Tax, GOV.UK. Checked 29 Oct 2026
2. HMRC: find software that works with Making Tax Digital for Income Tax (all software list), GOV.UK. Checked 29 Oct 2026
3. Check what to do if HMRC has signed you up for Making Tax Digital for Income Tax, GOV.UK. Checked 29 Oct 2026

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