Key takeaways
- Four UK options cost £0 a month in November 2026: Clear Books free plans, FreeAgent through a qualifying bank account, Pandle and Zoho Books Free.
- Pandle's free plan includes MTD VAT and MTD Income Tax submissions; live bank feeds need Pandle Pro at £5 a month plus VAT.
- Zoho Books Free covers 1 user plus 1 accountant and up to 1,000 invoices and 1,000 expenses a year, with MTD VAT filing and MTD Income Tax quarterly updates.
- Clear Books Sole Trader Free handles MTD Income Tax quarterly updates and the year-end return but has no invoicing, bank feeds or VAT returns.
- FreeAgent is free while you keep a NatWest, RBS or Ulster Bank business current account, or a Mettle account with at least one transaction a month.
- MTD for Income Tax applies from 6 April 2027 to sole traders and landlords with qualifying income over £30,000 in 2025/26.
- The usual trade-off on free plans is no automatic bank feeds, so you import statements or type transactions in yourself.
You can run a small UK business on free accounting software in 2026. Clear Books, Pandle and Zoho Books offer free plans, and FreeAgent is free if you bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle. What you give up is usually automatic bank feeds, extra users or VAT returns, so check the plan against what HMRC needs from you.
All details below come from each provider’s own pricing page, checked on 6 November 2026. Options are listed alphabetically. This is not a ranking.
Which accounting software is free in the UK?
Four providers offer a £0 option for UK businesses. The table shows the headline limits.
| Free option | Who it suits | Main limit |
|---|---|---|
| Clear Books free plans | Sole traders and landlords | No invoicing, bank feeds or VAT |
| FreeAgent (via bank) | NatWest, RBS, Ulster Bank, Mettle customers | Must keep the bank account |
| Pandle | Any small business | No live bank feeds |
| Zoho Books Free | Any business type | 1 user, 1,000 invoices a year |
What does each free plan include?
Clear Books. Clear Books has three “forever free” plans: Sole Trader Free, Property Free and Foreign Property Free. Each is HMRC recognised software for MTD for Income Tax quarterly updates and the year-end return, with no transaction limits. Sole Trader Free also supports CIS subcontractors. None includes invoicing, bank feeds or MTD VAT; VAT returns start on Sole Trader Plus at £15 a month plus VAT.
FreeAgent. FreeAgent gives the full product free to limited companies, sole traders and landlords who keep a business current account with NatWest, Royal Bank of Scotland or Ulster Bank. Mettle customers qualify if they make at least one transaction a month. Partnerships and LLPs qualify only through the NatWest group banks. Some add-ons, such as Smart Capture Unlimited, may still be charged.
Pandle. Pandle says it “will be free forever”. Its pricing page lists VAT submissions and MTD Income Tax submissions on the free plan. Live bank, PayPal and Stripe feeds are on Pandle Pro, which costs £5 a month plus VAT and is billed monthly.
Zoho Books. Zoho Books Free is open to all business types with 1 user plus 1 accountant. It includes invoices, quotes, expenses, MTD VAT filing, MTD Income Tax quarterly updates, SA100 filing and over 50 reports. Limits are 1,000 invoices and 1,000 expenses a year and 50 receipt scans a month. Connecting bank feeds for multiple accounts starts on the Standard plan.
Free plans compared on MTD and VAT
Free plans differ most on what they can send to HMRC. This is what each pricing page showed on 6 November 2026.
| Free option | MTD VAT returns | MTD Income Tax |
|---|---|---|
| Clear Books free plans | No | Yes |
| FreeAgent (via bank) | Yes, full product | Yes, full product |
| Pandle | Yes | Yes |
| Zoho Books Free | Yes | Yes |
If you are VAT registered, Clear Books’ free plans will not file your VAT return. Our MTD for VAT guide explains the rules.
Do free plans work for MTD for Income Tax?
Yes, several do, but check HMRC’s list before you rely on one. MTD for Income Tax applies to sole traders and landlords in stages, according to HMRC’s eligibility guidance:
- From 6 April 2026: qualifying income over £50,000 in 2024/25.
- From 6 April 2027: qualifying income over £30,000 in 2025/26.
- From 6 April 2028: qualifying income over £20,000 in 2026/27.
Your software must create digital records, send quarterly updates and submit your tax return. HMRC’s software finder lists compatible products. See also our guide to free MTD Income Tax software.
What you give up on a free plan
Free plans save the subscription but cost you time in other places. Common gaps are:
- Bank feeds. Pandle Free and Clear Books’ free plans have no live feeds, so you import or type transactions.
- Users. Zoho Books Free allows 1 user plus your accountant.
- Invoicing. Clear Books’ free plans do not create invoices.
- Payroll. The Clear Books, Pandle and Zoho Books free plans do not list payroll.
- Support. Support is usually email or self-service only.
If you need any of these, compare the paid tiers in our accounting software prices list.
Which free option applies to you?
- If you bank with NatWest, RBS, Ulster Bank or Mettle, check FreeAgent first, since you get the full product.
- If you are a sole trader or landlord who only needs MTD for Income Tax, Clear Books’ free plans cover quarterly updates and the final return.
- If you are VAT registered and want to stay at £0, Pandle and Zoho Books Free both list MTD VAT filing.
- If you need more than one user or live feeds, budget for a paid plan, such as Pandle Pro at £5 a month plus VAT.
- If you are a landlord, see our landlord software comparison.
What to do now
- List what HMRC needs from you: VAT returns, MTD Income Tax updates, or both.
- Count your transactions and users. Check them against each plan’s limits.
- Test the import. Without bank feeds, make sure your bank’s CSV export works.
- Confirm with your accountant. Free plans can limit accountant access or tools.
Frequently asked questions
Is there completely free accounting software in the UK?
Yes. Clear Books, Pandle and Zoho Books offer free plans, and FreeAgent is free with a NatWest, RBS, Ulster Bank or qualifying Mettle business account.
Can free accounting software submit VAT returns?
Pandle’s free plan and Zoho Books Free list MTD VAT filing. Clear Books’ free plans do not include VAT returns.
Is there free software for Making Tax Digital for Income Tax?
Yes. Clear Books’ free plans, Pandle and Zoho Books Free all list MTD Income Tax quarterly updates, as checked on 6 November 2026.
How do I get FreeAgent for free?
Keep a business current account with NatWest, Royal Bank of Scotland or Ulster Bank, or use Mettle and make at least one transaction a month.
What is the catch with free accounting software?
Free plans usually leave out automatic bank feeds, extra users, payroll or invoicing, and offer email or self-service support only.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.