Best Free MTD Software for Sole Traders and Landlords (2026)

From 6 April 2026, many sole traders and landlords have to keep digital records and send quarterly updates to HMRC under Making Tax Digital for Income Tax. Plenty of that software is paid, usually £12 to £35 a month, but there is genuinely free MTD software too. The catch is that "free" means very different things depending on the tool.

This guide compares the best free MTD software for self-employment and UK property income in 2026, and explains what to look for so you do not end up paying for features you will never use, or switching systems you did not need to.

Is there genuinely free MTD software?

Yes. HMRC keeps an official list of compatible software, and a good number of the tools on it are free. The thing to understand before you pick one is that they come in two very different shapes, and "free" often has conditions.

Bridging software vs accounting software

HMRC's compatible software splits broadly into two types:

• Full accounting software, platforms like Xero, QuickBooks and FreeAgent that replace your spreadsheet with a complete bookkeeping system. Powerful, but you have to move your records into them and learn how they work.
• Bridging software, lightweight tools that read the figures from your existing spreadsheet and send them to HMRC. You keep working the way you already do.

If you already track your income and expenses in Excel or Google Sheets and your finances are straightforward, free bridging software is usually the simpler choice.

Watch the conditions on "free"

Most of the free options on HMRC's list are free with strings attached. The common ones to watch for:

• Tied to a bank account. FreeAgent, for example, is free if you bank with Mettle, NatWest, RBS or Ulster Bank, and paid otherwise. Several bank apps include MTD tools only while you hold their account.
• Limited free tiers. Some free plans cap the number of bank connections, invoices or properties, or cover self-employment but not property.
• Turnover caps. A few free plans only stay free below a set income level.

None of these are bad. They just mean "free" is worth reading closely before you commit a year of records to a tool.

Best free MTD software compared

Software	Type	Free?	Use your own spreadsheet?
flonancial	Bridging	Free, no conditions	Yes
FreeAgent	Full accounting	Free with Mettle, NatWest, RBS or Ulster, paid otherwise	No
Clear Books, Pandle, QuickFile	Full accounting	Free	No
ANNA, My Tax Digital	Bridging and accounting	Free	Partly
Sage (free plan)	Full accounting	Free, with limits; self-employment only	No
Tide, Starling, Monzo	Full accounting	Free while you hold their bank account	No

The free choice is real, but most of these ask you to either move into a full accounting system or meet a condition. That is the gap flonancial is built to fill.

The best free MTD bridging software for spreadsheet users

flonancial is free bridging software built for one job: taking the figures from your spreadsheet and submitting your quarterly updates to HMRC. It supports both self-employment and UK property.

• Free, with no conditions. No card, no trial, no bank requirement, no turnover cap, no limit on the number of properties.
• Keep your spreadsheet. Upload your .xlsx, .xls, .csv or .ods file, pick the cells with your totals, and submit. Nothing to migrate, nothing new to learn.
• Private by design. Your spreadsheet is read entirely in your browser and never reaches our servers. We connect to HMRC through their official OAuth process, so we never see your Government Gateway password, and we only store the summary figures you submit.
• Built and run in the UK. flonancial is operated by Flonancial Ltd, a company registered in England and Wales (company number 17090724), registered with the ICO under reference ZC141107, with data hosted in the UK.
• On HMRC's official list. flonancial appears on the GOV.UK list of software compatible with Making Tax Digital for Income Tax, and its fraud-prevention checks have been reviewed by HMRC.

Which free MTD software should you choose?

If you want a full bookkeeping system with invoicing, bank feeds and reporting, a free accounting platform may suit you, as long as you are happy to move your records into it. If you already keep a spreadsheet and just need a simple, private, genuinely free way to meet your quarterly obligation, that is exactly what flonancial is for.

Is free MTD software safe to use?

It can be, but it is worth checking who is behind the tool. Look for software on HMRC's official compatible list, a clear privacy policy, and a real UK company you can identify. flonancial is run by a UK registered company, connects to HMRC through their official secure process, and keeps your spreadsheet on your own device.

Getting started

Create a free account, connect to HMRC once using your Government Gateway login, and submit your first quarterly update from your existing spreadsheet. No card required, no trial period, no catch.

Frequently asked questions

Is MTD software really free?

Some of it is. Several tools on HMRC's compatible list are free, though many are free only with a qualifying bank account, below a turnover cap, or on a limited plan. flonancial is free with no conditions.

Do I have to use accounting software for Making Tax Digital?

No. You need compatible software to send your quarterly updates, but that can be bridging software that works with your existing spreadsheet. You do not have to switch to a full accounting system.

Is there free MTD software for landlords?

Yes. Several free options support UK property income. Check that the tool covers property and not just self-employment, and that the free plan does not limit the number of properties.

Can I use Excel or Google Sheets for MTD?

Yes, with bridging software. You keep your records in a spreadsheet and the bridging tool sends the figures to HMRC. flonancial reads the totals straight from your file.