FreeAgent MTD Review: Features, Pricing and What Sole Traders and Landlords Get

FreeAgent is one of the longest-established cloud accounting tools aimed specifically at UK freelancers, sole traders, and small businesses. It is built by a Scottish company, is HMRC-recognised for Making Tax Digital for Income Tax (MTD ITSA), and offers a dedicated pricing tier for unincorporated landlords alongside its sole trader plan. This article covers what FreeAgent includes, how it handles MTD ITSA compliance, what it costs, and where it has limitations.

Who FreeAgent Is Built For

FreeAgent targets UK self-employed individuals and small businesses rather than large enterprises. Unlike Xero or QuickBooks, it has historically been positioned as a simpler, UK-focused tool without the complexity that comes with multi-currency inventory management and full payroll for many employees.

Its core audience for MTD ITSA purposes is:

• Sole traders who want invoicing, bank feeds, and tax submission in one place.
• Landlords with UK property income who need digital record-keeping and quarterly MTD updates.
• Freelancers and contractors who file Self Assessment alongside any company work.

FreeAgent also offers a separate free tier for anyone who banks with NatWest, Royal Bank of Scotland, Ulster Bank, or Mettle (a NatWest Group business account), though conditions apply.

MTD ITSA Features

FreeAgent is on HMRC's list of compatible software for MTD ITSA. The key MTD-specific features included in all paid plans (sole trader and landlord) are:

• Quarterly update submission: Send your four quarterly updates directly to HMRC from within FreeAgent.
• Final declaration: File your end-of-year final declaration (replacing the Self Assessment tax return) through the software.
• Tax Timeline: A dashboard view showing your running income tax estimate and when payments are due.
• Self Assessment filing: File directly to HMRC without needing separate tax software.
• MTD for VAT: Generate and submit MTD-compatible VAT returns if you are VAT-registered.

FreeAgent handles both the quarterly update and the final declaration within the same interface, so you do not need a separate piece of software for submission.

Sole Trader Plan: Features and Pricing

The sole trader plan includes:

• Dashboard with cashflow, profit and loss, and tax timeline.
• Invoicing and estimates with automated reminders and online payment links.
• Expense tracking and receipt capture (up to 10 files per month as standard; unlimited with a £5/month add-on).
• Bank feeds and smart categorisation.
• Time tracking and project management.
• Self Assessment and MTD ITSA quarterly updates and final declaration.
• MTD for VAT.
• UK-based customer support by phone and email.

Pricing (sole trader, prices exclude VAT):

• Regular monthly price: £19/month.
• Regular annual price: £190/year (equivalent to £15.83/month).
• Introductory offer: 50% off for the first six months (monthly) or first year (annual).
• Free: Available at no charge if you have a qualifying NatWest, Royal Bank of Scotland, or Ulster Bank business current account, or a Mettle account with at least one transaction per month.

Landlord Plan: Features and Pricing

FreeAgent offers a separate landlord plan with a lower price point. It includes MTD ITSA quarterly updates and final declaration, bank feeds, property income and expense tracking, Self Assessment filing, and the Tax Timeline. Invoicing, time tracking, and payroll are also included.

Pricing (landlord, prices exclude VAT):

• Regular monthly price: £10/month.
• Regular annual price: £100/year (equivalent to £8.33/month).
• Introductory offer: 50% off for the first six months or first year.
• Free: Same bank account conditions as the sole trader plan.

The landlord plan does not include payroll (not relevant for unincorporated landlords). It is materially cheaper than the sole trader plan, reflecting the simpler record-keeping requirements.

The Free Bank Account Route

FreeAgent's free access via NatWest Group accounts is a genuine zero-cost option, not a trial. If you hold a qualifying business current account and maintain it, FreeAgent remains free for as long as you keep the account. The same software, the same MTD ITSA features, and the same UK support are included. Optional add-ons such as unlimited Smart Capture still carry a fee.

This makes FreeAgent worth considering seriously if you are already a NatWest, RBS, Ulster Bank, or Mettle customer, or if you are prepared to open one of those accounts before your MTD ITSA compliance date.

What FreeAgent Does Well

UK-first design. FreeAgent is built around UK tax categories, UK Self Assessment, and UK compliance from the ground up. It does not require configuration to handle UK tax rules; they are the default.

Simple interface. The software is generally regarded as easier to navigate than Xero or QuickBooks for sole traders who are new to accounting software. The Tax Timeline in particular makes it straightforward to understand your tax position without needing accountancy knowledge.

Dedicated landlord tier. Having a lower-cost landlord plan that still includes full MTD ITSA functionality is a practical advantage for those who do not need invoicing or project features.

UK-based support. FreeAgent offers phone and email support from a UK team, which is useful when questions relate to HMRC processes or UK-specific rules.

Limitations to Be Aware Of

No foreign property support confirmed. FreeAgent's standard landlord plan is designed for UK unincorporated landlords. If you have foreign property income requiring MTD ITSA reporting, confirm with FreeAgent whether their product supports that before signing up.

Receipt scanning limit. The standard plan allows 10 receipt/bill captures per month. High-volume sole traders may need the £5/month add-on.

Not suited to complex businesses. FreeAgent is less well suited to businesses with stock management needs, multiple currencies, or complex payroll. For straightforward sole traders and landlords, these limitations are irrelevant.

Free tier tied to bank relationship. The free access requires maintaining a specific bank account. If you switch banks, you would revert to the paid price.

How FreeAgent Compares

For a side-by-side comparison of FreeAgent, Xero, and QuickBooks on price and MTD ITSA features, see our Xero vs QuickBooks comparison article. For a broader look at all compatible software options including pricing, see the compatible software section of our MTD guide.

At the regular price of £19/month for sole traders, FreeAgent sits between Xero's Simple plan (£7/month, with invoice limits) and Xero's Ignite plan (£16/month, no invoice cap). The landlord plan at £10/month is directly competitive.

What This Means for You

If you are a sole trader or landlord looking for MTD ITSA-compatible software that is designed specifically for UK self-employed individuals, FreeAgent is a credible option. The free tier via NatWest Group bank accounts is a genuine advantage if that banking relationship suits you. If it does not, the paid tiers are mid-range in price compared to other HMRC-recognised products.

The 30-day free trial is available without a card. Testing the software before your first quarterly deadline is the most effective way to assess whether it fits your workflow.

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DigiTaxHub.co.uk is an independent information resource and is not affiliated with or endorsed by HMRC. This article is for information purposes only and does not constitute tax or financial advice. Always verify current rules at GOV.UK and speak to a qualified accountant if you are unsure.