Key takeaways
- HMRC says free MTD for Income Tax products exist for people with simple tax affairs, but they may have limits such as a cap on transactions.
- Clear Books, Pandle and Zoho Books list a free plan with no end date that includes MTD for Income Tax submissions, checked on 6 November 2026.
- Zoho Books Free caps you at 1,000 invoices and 1,000 expenses a year and one user plus an accountant.
- FreeAgent is free only while you keep a NatWest, RBS or Ulster Bank business current account, or an active Mettle account; otherwise the sole trader plan is £19 a month.
- Affordable MTD is free for 2026-27 only, then £19.99 a year.
- Starling's free tool sends quarterly updates, but its end-of-year declaration was listed as coming soon on 6 November 2026.
- Free software must still let you submit the tax return, not just quarterly updates, or you will need a second product.
Genuinely free MTD for Income Tax software exists, but “free” means three different things: free forever with limits, free while you bank with a provider, or free for one year. Clear Books, Pandle and Zoho Books list permanent free plans that include MTD submissions. Check that any free product files your tax return as well as your quarterly updates.
Does HMRC offer free MTD software?
No. HMRC does not make its own MTD software. GOV.UK’s software guidance, updated 13 July 2026, says “free products are available for those with simple tax affairs” but warns “there may be limits on how the product can be used”, such as a cap on transactions.
To be usable for MTD, free software must keep digital records, send quarterly updates and let you submit your tax return by 31 January. See MTD software requirements.
Three kinds of free
Each product below was checked on its own website on 6 November 2026. Products are listed alphabetically within each group.
| Type of free | Products | The catch |
|---|---|---|
| Free with no end date | Clear Books, My Tax Digital, Pandle, Zoho Books | Feature or volume limits |
| Free with a bank account | FreeAgent, Starling | Must keep the account |
| Free for one year | Affordable MTD | £19.99 a year from 2027-28 |
Free with no end date
Clear Books. The Clear Books free plan is £0 “forever” with no transaction limits and no card needed. It prepares the final declaration from your four quarterly updates and covers UK and overseas lets and CIS. If you have both rental and trading income, you need two free accounts, linked by one login. VAT filing, multi-user access and payroll need a paid plan from £5 a month.
My Tax Digital. My Tax Digital calls itself free MTD software for Income Tax and VAT, with no paid tier listed. It covers self-employment, UK property and foreign property, and can bridge from spreadsheets. Its homepage does not mention the final declaration, so check before relying on it.
Pandle. Pandle’s free plan lists “MTD Income Tax Submissions” and “No Usage Limits”. The page does not say which income types or year-end steps are covered. Pandle Pro is £5 a month plus VAT.
Zoho Books. Zoho Books Free says it can send quarterly updates, report other income and submit the final return. Its limits are one user plus one accountant, 1,000 invoices and 1,000 expenses a year, 50 receipt scans a month and no add-ons apart from CT600 and final accounts.
Free while you bank with them
FreeAgent. FreeAgent is free for as long as you hold a NatWest, Royal Bank of Scotland or Ulster Bank business current account. Sole traders and companies can also get it free with a Mettle account used at least once a month. The sole trader plan includes quarterly updates and the final declaration. If you close the account, it costs £19 a month excluding VAT.
Starling. Starling’s MTD tool is free with its sole trader account, which has no monthly fee. It covers self-employment and property income and sends quarterly updates. On 6 November 2026 Starling listed the end-of-year declaration as “coming soon”. VAT returns need Accounting Plus, at £14 a month after a 50% discount ends in April 2027.
Free for one year
Affordable MTD. Affordable MTD is free for 2026-27, up to 5 April 2027, then £19.99 a year. It supports quarterly updates and the final declaration for self-employment and UK property income, but not foreign property yet. For April 2027 joiners, the free year has already ended by the time you start.
What free plans usually leave out
Free plans are aimed at simple cases. Before you commit, check for these gaps:
- VAT. Most free plans do not file VAT returns. Clear Books, Starling and others charge for it.
- The tax return. Some tools only send quarterly updates. Without the final declaration you need a second product.
- More than one income type. Clear Books needs separate accounts for property and trading.
- Foreign property. Not every product covers it.
- Agent access. Check your accountant can log in.
- Support. Free plans often have email support only; Zoho’s free plan lists email support.
Which applies to you?
- If you bank with NatWest, RBS, Ulster Bank or Mettle, FreeAgent may cost you nothing.
- If you bank with Starling, its free tool covers updates; confirm the year-end declaration is live before your return is due.
- If you are VAT registered, a free plan is unlikely to be enough. See MTD software compared.
- If you keep spreadsheets, a free bridging tool may suit. See bridging software.
- If your 2025-26 turnover is near £30,000, first work out your qualifying income.
What to do now
- Search HMRC’s software finder on GOV.UK for the product and your income types.
- Read the free plan’s limits and compare them with last year’s transaction count.
- Test it early. Start keeping records before 6 April 2027 so you are ready for the first update due 7 August 2027.
- Sign up for MTD once your software is set up. See how to sign up.
Frequently asked questions
Is there completely free MTD for Income Tax software?
Yes. Clear Books, Pandle and Zoho Books list free plans with no end date that include MTD submissions, though each has its own limits.
Does HMRC provide free MTD software?
No. HMRC does not make software, but says free products are available from providers for people with simple tax affairs.
Is FreeAgent free for MTD?
Only with a NatWest, RBS or Ulster Bank business current account, or a Mettle account used at least once a month. Otherwise the sole trader plan is £19 a month excluding VAT.
Can free software file my MTD final declaration?
Some can. Clear Books, FreeAgent and Zoho Books say their free options cover it, while Starling listed its end-of-year declaration as coming soon on 6 November 2026.
Is free MTD software safe to use?
Use only products listed on HMRC’s software finder, which have been through HMRC’s recognition process. HMRC does not recommend any particular product.
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.