Free Making Tax Digital software — what's actually free in 2026?

With Making Tax Digital for Income Tax mandatory from April 2026, thousands of sole traders and landlords are searching for free MTD software. The honest answer: most providers charge for the features that matter most — quarterly HMRC submissions. Here's a clear breakdown of what each major platform actually offers at no cost, and where charges begin.

What “free” actually means for MTD software

The phrase "free Making Tax Digital software" covers several different things:

• Permanent free tier — a plan that stays free indefinitely, with limited but genuinely useful features
• Free trial — full features for 30 days, then a paid subscription is required
• Free via your bank — full access if you hold a qualifying bank account
• “Free” with conditions — marketed as free but core MTD submission features require a paid upgrade

For most sole traders and landlords the two things you genuinely need are: digital record keeping (HMRC's mandatory requirement) and quarterly HMRC submission capability. Not all free tiers include both.

At a glance: free tier comparison

Regulas — permanent free tier, built for MTD

Regulas offers a genuine permanent free tier — not a trial, not a freemium gimmick. The free tier is designed to let you meet HMRC's digital record-keeping requirements from day one and get thoroughly familiar with the software well before your first quarterly submission deadline arrives.

The free tier includes:

• Digital income and expense recording — meets the HMRC digital record-keeping obligation
• AI-powered transaction categorisation — learns your spending patterns and auto-categorises income and expenses
• Live tax estimates — your estimated tax liability updates in real time as you enter transactions
• Multi-income source support — manage sole trader income and rental property in one place
• Tax timeline — visual calendar showing all your upcoming quarterly deadlines and submission windows
• HMRC guidance in-app — contextual help on allowable expenses and what counts as qualifying income

Quarterly HMRC submissions and the final declaration are available on paid plans from £5.99/month. For users who are newly in scope for MTD, the free tier is an ideal starting point — record-keep from the moment you register, then upgrade when your first submission deadline approaches.

Unlike general accounting platforms (Xero, QuickBooks) that were designed for businesses and adapted for sole traders, Regulas is purpose-built for MTD for Income Tax. That means landlord-specific expense categories, Section 24 mortgage interest handling, and plain-language guidance at every step.

See how Regulas compares on features on our MTD software comparison page.

Xero — powerful but no free tier

Xero is a full-featured, cloud-based accounting platform used by over 3 million businesses worldwide. It is a well-established name in UK small business software and has strong MTD for Income Tax support.

However, Xero does not offer a free tier. Plans start at approximately £16/month, and — depending on your plan — MTD for Income Tax may require a specific add-on.

For a sole trader who needs MTD compliance rather than a full accounting suite with invoicing, bank reconciliation, multi-currency, and payroll, Xero is significantly more expensive than necessary. It is better suited to growing businesses with bookkeepers or accountants already using the platform.

QuickBooks — 30-day trial, then paid

QuickBooks offers a 30-day free trial for new users. After the trial period ends, a paid subscription is required. The Self Employed plan (aimed at freelancers and sole traders) starts at approximately £8/month; full Accounting plans start higher.

QuickBooks Self Employed includes a good mileage tracker — useful for tradespeople and sales professionals who travel frequently. MTD for Income Tax submissions are included on the Self Employed plan.

The key limitation is the 30-day trial ceiling — if you're looking for a free option to use during the run-up to your first quarterly deadline, QuickBooks will require payment well before that point.

FreeAgent — free with qualifying bank accounts

FreeAgent offers full platform access for free to personal and business banking customers of RBS, NatWest, or Mettle. For everyone else, paid plans start at approximately £19/month.

FreeAgent is a mature, well-regarded platform with strong MTD for Income Tax support and good project-based invoicing features particularly suited to freelancers and small agencies. If you already bank with a NatWest Group bank, the free access is a genuinely attractive offer worth considering.

The limitation is the bank-account tie-in — if you don't use NatWest, RBS, or Mettle, this is not a free option.

What about spreadsheet bridging software?

HMRC allows spreadsheet record-keeping only when paired with bridging software to connect the spreadsheet to the HMRC API for submissions. Several providers offer low-cost bridging tools — some have free tiers.

While spreadsheet bridging satisfies the technical digital record-keeping requirement, it has significant drawbacks:

• No live tax estimates — you lose the real-time liability visibility that purpose-built software provides
• Manual data entry remains — bridging doesn't eliminate spreadsheet work, it just connects it to HMRC
• No AI categorisation or deadline reminders
• Requires maintaining two separate tools and making sure they stay in sync

For most sole traders and landlords, purpose-built software is more efficient and less error-prone than spreadsheets with bridging.

Do I actually need to pay for MTD software?

If your qualifying income is below the threshold for the relevant year, you are not yet legally required to use MTD software — standard Self Assessment continues. For most people entering scope now (£50,000+ from April 2026), a free-tier account for digital record keeping followed by an affordable paid subscription for quarterly submissions is the most cost-effective route.

At £5.99/month for quarterly submissions, Regulas is the lowest entry point for compliant HMRC submissions among the major MTD-specific platforms — and the free tier means you are not paying anything until you are ready to submit.

Upcoming free features in Regulas

Regulas is actively expanding what is available across all tiers, including free:

• 📱 Mobile app (Android & iOS) — photograph receipts, log mileage, and check your live tax position on your phone. Planned for all tiers including free.
• 📊 Enhanced tax timeline — detailed calendar view of every quarterly submission window, payment deadline, and registration obligation

How to get started with free MTD software

1. Check whether you need to register — total your qualifying income for 2024–25 and compare against the threshold
2. Register for MTD on GOV.UK before your first accounting period. Follow our step-by-step MTD registration guide
3. Sign up to Regulas on the free tier — no credit card required
4. Connect your HMRC account via the secure OAuth authorisation
5. Start recording income and expenses — AI categorisation activates immediately and learns your patterns
6. Upgrade to a submissions plan when your first quarterly deadline approaches