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Yes. In October 2026 several products on GOV.UK's software finder have free versions, but most limit features, such as no bank feeds, or need a particular bank account. Check it covers the tax return too.
Making Tax Digital for Income Tax (MTD) means keeping digital records and sending quarterly updates from compatible software. GOV.UK's guidance says "free products are available for those with simple tax affairs", but adds that there may be limits, such as a set number of transactions. HMRC does not recommend any product or software provider. This page was checked on 15 October 2026.
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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.
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Free versions listed in October 2026
Each entry below is as listed on the product's own website, or on GOV.UK's software finder, in October 2026.
| Product | What is free | Main limit |
|---|---|---|
| Clear Books Sole Trader Free or Property Free | Quarterly updates and the year-end return | No bank feeds; the paid plan adds them |
| Pandle Free | MTD submissions, bank imports | No bank feeds; Pandle Pro adds them |
| FreeAgent | Full software, free with a qualifying bank account | Needs a NatWest, RBS or Ulster Bank business current account, or Mettle with at least one transaction a month |
| Starling Accounting Essentials | Quarterly updates, tax estimates, bookkeeping | Needs a Starling account; year-end tax return listed as coming soon |
| Sage Sole Trader & Landlord Free | Listed on the finder as a free version | Limits reported by a third party, not confirmed with Sage |
| Coconut Free | Listed on the finder as a free version | Check what it includes on Coconut's own site |
| Landlord Studio MTD Go | Free to use for 1 to 3 units | A charge for each MTD submission; UK property only |
Clear Books lists its paid Sole Trader or Property plan at £5 a month plus VAT on clearbooks.co.uk in October 2026, and Pandle lists Pandle Pro at £5 a month plus VAT on pandle.com. Landlord Studio lists MTD Go at £5 per submission on landlordstudio.com.
For Sage, a third-party comparison site, checked on 27 July 2026, reported the free version as limited to 25 automatically sorted transactions a month, one bank account and five sales invoices a month. Sage's own site could not be read, so treat those limits as unconfirmed.
To see how many products on the finder list a free version, ready now or in development, see our Making Tax Digital software census.
Free plans that do not file MTD
Some free plans look similar but do not send updates to HMRC. Crunch Free covers invoicing, expenses and bank reconciliation, but MTD filing is not included. August's free plan for landlords has no MTD reporting. Pie says its app is free and can send MTD submissions, but no Pie product could be found on GOV.UK's software finder in October 2026, so check the finder before relying on it.
Low-cost bridging software
If you keep your records in a spreadsheet, bridging software links it to HMRC. These were among the lowest listed prices in October 2026:
| Product | Listed price | Who it is for |
|---|---|---|
| 123 Sheets | £19.75 a year plus VAT for one taxpayer, including a first-year discount | Sole traders and landlords |
| LandlordFile | £19 for the first year, then £29 a year | Landlords |
| Abridge | £39 a year including VAT, with the year-end return | Sole traders and landlords |
| MTD Landlord Services | £47.88 a year, or £4.99 a month | Landlords |
What this means for you
A free product suits someone with simple affairs: one business or a couple of lets, not too many transactions, and the time to keep records and send updates yourself. HMRC's guide for software developers says a free product should be free for a full annual accounting period, so check the plan stays free for the whole year.
The choice is also largely set for this tax year. HMRC's developer guide, updated on 15 September 2026, says it is no longer accepting new quarterly update products for 2026-27.
If you start on 6 April 2027, your first update is due by 7 August 2027, and at the Budget on 28 October 2026 the government said you will get no penalty points for late 2027-28 quarterly updates, though they must still be sent. Pick software early so your records are in it from the first day.
Steps to choose free software
- Use the free MTD check to confirm your start date.
- Search GOV.UK's software finder for products with a free version that cover your income: self-employment, UK property or foreign property.
- Check the product covers both the quarterly updates and the year-end tax return.
- Check the limits: bank feeds, number of transactions, bank account needed, and CIS if you are a subcontractor.
- Read what happens if you go over the limit, and what the paid plan costs.
- Set it up before your start date and record every transaction from 6 April.
There are more software guides in the trades section and the landlord section.
Hold your place on the 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 provide free software?
GOV.UK points you to its software finder, which lists products made by software companies. Some of them have free versions. HMRC does not recommend any product or software provider.
Can I use a free spreadsheet?
You can keep records in a spreadsheet, but you also need bridging software to send the updates to HMRC, and the figures must pass through a digital link. Some bridging products cost under £50 a year.
What does free have to mean?
HMRC's guide for software developers says a free product should be free for the business to meet its MTD obligations for a full annual accounting period, with reasonable guidance and support.
Will a free version do my tax return as well?
Not always. Check that it covers the year-end tax return as well as the quarterly updates. Starling, for example, listed its year-end tax return as coming soon in October 2026.
Is free software enough if I am in CIS or have several properties?
It may not be. GOV.UK says free products are aimed at people with simple tax affairs and may limit how many transactions you can record. Some products list CIS on the tax return as still in development.
Sources
- Choose the right software for Making Tax Digital for Income Tax (GOV.UK)
- Find software for Making Tax Digital for Income Tax (GOV.UK software finder)
- Income Tax MTD end-to-end service guide (HMRC Developer Hub, updated 15 September 2026)
- Use Making Tax Digital for Income Tax: Create digital records (GOV.UK)
- Clear Books: Pricing
- Pandle: Pricing
- FreeAgent: Pricing
- Starling Bank: Accounting
- Landlord Studio: Pricing
- 123 Sheets: Self-employed
- Abridge: MTD for Income Tax and pricing
- LandlordFile
- MTD Landlord Services
- Budget 2026: Overview of tax legislation and rates (GOV.UK)
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.