Yes. On 18 October 2026, 13 products on HMRC's software finder listed a free version that was ready now for both sole traders and CIS deductions. Most free versions have limits, so check what each covers.
Making Tax Digital for Income Tax (MTD) means keeping digital records, sending HMRC four updates a year and filing your tax return through software. HMRC's campaign guide says it has no MTD software of its own. GOV.UK says "free products are available for those with simple tax affairs", but there may be limits, such as a set number of transactions. HMRC does not recommend any product or software provider.
Want your books sorted?
We sort your books and prepare your quarterly figures. You send them to HMRC yourself with free Making Tax Digital software.
Founding offer on Trades Tax (coming later), first 500 trades clients: £5 a month for your first 3 months, then £35 a month. Cancel any time. We’ll remind you before it changes. Prices include VAT. No payment is taken while you wait.
Are you ready for Making Tax Digital? Check your start date and what to sort first. It’s free and takes a minute.
The 13 free versions ready for CIS
Each product below showed a free version, sole trader and the Construction Industry Scheme (CIS) as ready now on its finder page on 18 October 2026. "What is free" is what the vendor's own site said that day. We counted and read what products state; we have not tested them.
| Product | Type | Phone app | What is free, as the vendor states it |
|---|---|---|---|
| AATAX | Records and bridging | No | Free for sole traders and landlords doing their own; you send the updates and final declaration |
| ANNA Self Assessment | Records and bridging | Yes | "MTD ITSA filing – free"; its MTD page says 2026/27 is free, "including 4 quarterly filings and 1 final update"; Auto Accountant £29 a month after 4 free months, VAT not stated |
| CIS Invoice | Creates records | Yes (Android, iPhone) | Free plan lists periodic and annual submissions and the final declaration |
| Clear Books Free | Creates records | Yes | Quarterly updates, no transaction limits, "works for CIS subcontractors"; its plan table ticks year-end filing; bank feeds need the £5 a month plus VAT plan |
| FileThat! | Records and bridging | No | First 4 quarterly updates free, then £3.99 to £5.99 each, VAT not stated; the final declaration is always free |
| FreeAgent (bank offer) | Creates records | Yes | Free with a NatWest, RBS or Ulster Bank business current account, or Mettle with at least one transaction a month |
| My Tax Digital (Free) | Records and bridging | No | Says it is free; no limits stated |
| Quarterwise | Records and bridging | No | One business, entered by hand or by CSV, quarterly updates and tax return; it says to file the return elsewhere if you have other income |
| RentalBux Free | Records and bridging | Yes | "100% free until March 2028" for one property or simple self-employment; lists quarterly submissions |
| Self Assessment Direct | Records and bridging | Yes | "The basic service is free" and "sufficient to enable submissions"; extras charged; its cashbook is free "at the moment" |
| TaxBridge UK MTD | Records and bridging | No | One self-employment business, quarterly updates and final declaration; bank statement sorting up to 50 transactions |
| TaxHeaven | Records and bridging | No | Site needs a full browser; its text shows an "Angel" plan, "Free forever", for one business |
| TaxUpdates | Bridging only | No | "Free to use as an individual dealing with your own tax"; lists quarterly updates and the tax return |
On the finder, 12 of the 13 create digital records, 10 are bridging software for spreadsheets (9 do both), and 6 have an Android or iPhone app. All 13 came from the 47 products ready for sole traders and CIS, out of 156 ready for sole traders and 173 listed. Another 14 free versions show CIS only "in development", a provider's promise to build it in time for the 2026 to 2027 tax return. They include Starling, Tide, Pandle, Sage and Coconut. See our MTD software census for full counts.
Free through your bank
In our reading, of the 13 only FreeAgent's free version depends on your bank. ANNA lists free MTD filing on the plans for its own free ANNA account, and says it works "for all UK bank accounts". Starling's free Accounting Essentials includes MTD submissions, but its page lists the end-of-year tax return as "coming soon", and CIS was in development on the finder. Tide's page says its Self Assessment tool is for sole traders "not using the construction industry scheme". See free software with your bank account.
What a builder needs from free software
- CIS on the tax return. GOV.UK says that if HMRC has your CIS subcontractor deductions, it adds them to your MTD tax return, and you must check them before you submit. Any refund is requested separately through HMRC online services. Record your pay before deductions as income.
- The tax return, not just the updates. Some free versions above do not say they file it.
- If you pay subcontractors. That is a separate job. GOV.UK says you verify subcontractors and file monthly returns, by the 19th, through the HMRC CIS online service or commercial CIS software, which you need to verify more than 50.
The cost of switching later
Free may not last: RentalBux names March 2028, FileThat charges after 4 updates, and ANNA's page names 2026/27. GOV.UK says you can change software at any time, but it may be easier at the end of the tax year. Mid-year, you import or recreate this year's records; keep each year's records for at least 5 years from its filing deadline. Export a copy first. See changing software mid-year.
What this means for you
MTD started on 6 April 2026 for qualifying income over £50,000. It starts on 6 April 2027 if your 2025-26 qualifying income was over £30,000, and on 6 April 2028 if it was over £20,000 in 2026-27. Qualifying income is self-employed and property income before expenses.
If you keep tidy records and will send the updates and return yourself, a free app may be enough. See free and low-cost CIS apps, and the best software for builders for paid options.
If you would rather hand it over, our Trades Tax plan is £35 a month including VAT. The founding offer for the first 500 trades clients is £5 a month for your first 3 months, then £35 a month. Cancel any time. We'll remind you before it changes. Our tax plans start once our HMRC registrations are complete. Until then you can join the waitlist, and no payment is taken.
Steps to choose free software
- Use the free MTD check to confirm when MTD starts for you.
- On HMRC's finder, check free version, sole trader and CIS all show ready now.
- Read the vendor's free plan: limits, how long it stays free, and whether it files the tax return.
- Check how it handles your CIS statements and pay before deductions.
- Try it on a month of real jobs before your first quarter.
There are more guides in the trades section.
Hold your place on the trades waitlist
We’ll email you when Trades Tax opens, with the founding offer while places last. No payment is taken.
Questions people ask
Does HMRC give builders free MTD software?
No. HMRC's campaign guide answers 'Does HMRC have its own Making Tax Digital software I can use?' with 'No'. GOV.UK says you or an agent use commercial software, and that free products are available for those with simple tax affairs, with possible limits.
Which free MTD software handles CIS?
On 18 October 2026, 13 products on HMRC's finder showed a free version, sole trader and CIS all ready now, including CIS Invoice, Clear Books Free and FreeAgent's bank offer. We counted what the finder states; we have not tested them.
Does free software claim back my CIS refund?
Once you are in MTD, HMRC adds your CIS deductions to your MTD tax return, and any refund is requested separately through HMRC online services. GOV.UK says you must check the CIS figures before you submit.
If I pay subcontractors, does free MTD software do my CIS returns?
Not necessarily. On HMRC's finder, CIS is listed under what is needed for tax returns. GOV.UK says contractors can verify subcontractors and file monthly returns through the HMRC CIS online service or commercial CIS software.
Can I start free and change software later?
Yes. GOV.UK says you can change software at any time, but it may be easier at the end of the tax year. Mid-year, you import or recreate this year's records in the new software, and you keep records for at least 5 years.
Sources
- Find software that works with Making Tax Digital for Income Tax (GOV.UK software finder, product pages read 18 October 2026)
- Choose the right software for Making Tax Digital for Income Tax (GOV.UK)
- What software you'll need for Making Tax Digital (HMRC campaign guide)
- Find out if and when you need to use Making Tax Digital for Income Tax (GOV.UK)
- Work out your qualifying income for Making Tax Digital for Income Tax (GOV.UK)
- Use Making Tax Digital for Income Tax: Submit your tax return (GOV.UK)
- Use Making Tax Digital for Income Tax: If your circumstances change (GOV.UK)
- What you must do as a CIS subcontractor: Pay tax and claim back deductions (GOV.UK)
- What you must do as a CIS contractor: Verify subcontractors (GOV.UK)
- What you must do as a CIS contractor: File your monthly returns (GOV.UK)
- AATAX (checked 18 October 2026)
- ANNA: Pricing (checked 18 October 2026)
- ANNA: MTD Self Assessment (checked 18 October 2026)
- CIS Invoice: Pricing (checked 18 October 2026)
- Clear Books: Pricing (checked 18 October 2026)
- Clear Books: Making Tax Digital (checked 18 October 2026)
- FileThat: Pricing (checked 18 October 2026)
- FreeAgent: Pricing (checked 18 October 2026)
- My Tax Digital (checked 18 October 2026)
- Quarterwise: Pricing (checked 18 October 2026)
- RentalBux: Free MTD software (checked 18 October 2026)
- VAT Direct (Self Assessment Direct) (checked 18 October 2026)
- TaxBridge UK (checked 18 October 2026)
- TaxHeaven (checked 18 October 2026)
- TaxUpdates (checked 18 October 2026)
- Starling Bank: Accounting (checked 18 October 2026)
- Tide: Accounting software (checked 18 October 2026)
This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.
What happens next
- Use the free Making Tax Digital checker to see your own start date and deadlines.
- See what Righto Tax for Trades does for you, and join the waitlist.
- Questions about this page? Email hello@rightotax.co.uk.