Free MTD for Income Tax software: what to check
The short answer: yes, there's free software for Making Tax Digital for Income Tax. HMRC says free products are available for people with simple tax affairs, but they may have limits, such as a cap on the number of transactions. HMRC doesn't make its own software, so you choose a commercial product. HMRC's software finder lists compatible products, and HMRC says all of them have passed its recognition process (GOV.UK).
General information, not tax advice. Check with an accountant or HMRC for your situation.
What HMRC says about free software
- HMRC doesn't provide MTD software (GOV.UK).
- "Free products are available for those with simple tax affairs but there may be limits on how the product can be used, for example they could have a limited number of transactions" (GOV.UK).
- The government says it will keep working with developers to make sure there's "a choice of free and low-cost products" (GOV.UK impact note).
- HMRC's finder says "All software has passed HMRC's recognition process", shows results "in random order for fairness", and adds that HMRC doesn't recommend any specific product (HMRC software finder, checked 18 October 2026).
- The finder has a "free version" filter. When we checked on 18 October 2026, the list for sole traders and landlords had 159 products (HMRC software finder).
How to find free options
- Open HMRC's software finder and tick the free version filter.
- Have these ready: your MTD income sources (self-employment, UK property, foreign property), any other income on your return, whether you want to create records or connect to existing ones, and your accounting period.
- Go through the personalised list and check each provider's website for a free plan and what it includes.
Free doesn't always mean complete: 8 things to check
Base these questions on what HMRC says software has to do (GOV.UK):
- Does it submit the tax return as well as quarterly updates? If not, you'll need a second product.
- Does it cover every income source you have: each trade, UK property (including joint lets), foreign property?
- Can you add your other income to the return, such as savings, dividends, pensions or a partnership share?
- Transaction or feature limits. Is there a cap, and what happens if you go over it partway through the year?
- Is it free for good, or only for a while? Check for introductory periods and the price afterwards.
- Accounting period. Standard update periods are the default. Does it also support calendar update periods, if you need them?
- Agent access, if an accountant or bookkeeper helps you.
- Exporting your records. You have to keep digital records for at least 5 years and be able to access them even if you change software (GOV.UK).
Free spreadsheet plus bridging software? That's allowed, as long as the two are digitally linked. See Can I keep using spreadsheets for MTD?
Free vs paid: what the difference usually is
Free products tend to suit the simplest cases, such as one income source and a modest number of transactions, which matches HMRC's own wording. Paid products may add things like bank feeds, receipt capture or support for more income types. We haven't tested any of the products below. The table shows what providers say, not how well their products work.
Free MTD options: what providers say (checked 18 October 2026)
In alphabetical order. This is not a ranking or a recommendation. "Free" here means the provider says you can file without paying. Limits and prices change, so check the provider's page and HMRC's software finder on the day. The "HMRC finder" column shows what HMRC's finder said about each product when we checked it on 18 October 2026.
| Product | Type | What the provider says is free | Limits or gaps the provider states | HMRC finder (18 Oct 2026) | Source |
|---|---|---|---|---|---|
| aligned.tax | Bridging (Excel upload) | Filing your own quarterly updates: "free, always", no card | Year-end tax return "coming soon". Needs an .xlsx file | Listed ("Aligned.tax MTD for Spreadsheets"): free version, bridging, quarterly updates only. HMRC says tax return features are in development | aligned.tax |
| flonancial | Bridging (spreadsheet) | Quarterly updates and the year-end tax return | Designed for straightforward sole traders and UK landlords with income under £90,000 before expenses | Listed: free version, bridging, quarterly updates and tax return, sole trader and UK property | flonancial.co.uk |
| My Tax Digital | Bridging or record-keeping | Says it's free MTD software for Income Tax and VAT | Bridging uploads must match its template layout | Listed ("My Tax Digital (Free)"): creates records and bridging, quarterly updates and tax return, all three income sources | mytaxdigital.co.uk |
| Sage Sole Trader (free plan) Visit Sage | Record-keeping app | Free plan: Making Tax Digital ready, records landlord income and expenses, quarterly and year-end Income Tax submissions | 25 auto-categorised transactions, 1 bank account, 5 sales invoices a month, single user. Sage's help pages say you need a separate business for each income source, with one on the free plan and others paid. It uses one ownership share across all your UK property. Paid plan £7 a month + VAT | sage.com, | Listed ("Sage Sole Trader & Landlord Free"): creates records, quarterly updates and tax return, sole trader and UK property Sage help |
Free trials and introductory offers (not free for good)
These are paid products with trials or introductory discounts, as stated on 18 October 2026. Alphabetical. Check the terms, including whether you need a card and when billing starts.
| Product | What the provider states | HMRC finder (18 Oct 2026) | Source |
|---|---|---|---|
| Hammock (landlords) | 30-day free trial. Then from £8 + VAT a month for 1 to 3 properties | Listed ("Hammock for landlords"): paid, quarterly updates and tax return, UK and foreign property | usehammock.com |
| Landlord Vision (landlords) | Says every plan includes full MTD functionality at no extra cost, offers a 2-week free trial, and that prices exclude VAT. The pricing page shows several figures per plan, including discounts and a promotion, so see the current price on the provider's site (checked 18 October 2026) | Listed: paid, creates records, quarterly updates and tax return, all three income sources | landlordvision.co.uk |
| QuickBooks (UK) | "Free for 30 days" on each plan. Its offer terms say choosing a discount offer means you aren't eligible for the free trial. Prices didn't display on the pricing page, so see the current price on the provider's site (checked 18 October 2026) | Listed ("QuickBooks (Intuit)"): paid, quarterly updates and tax return, sole trader and UK property | quickbooks.intuit.com |
| VitalTax (bridging) | First quarterly submission free, then £30 + VAT a year for one person | Listed: paid, bridging, quarterly updates and tax return, all three income sources | vitaltax.co.uk |
| Xero (UK) | 90% off for the first 6 months for new UK customers, then the regular price (Ignite £18 a month + VAT). Plans auto-renew monthly | Listed: paid, creates records, quarterly updates and tax return, all three income sources | xero.com |
Related: MTD for Income Tax guide · Spreadsheets and bridging software · How much does MTD software cost? · MTD for landlords · MTD for sole traders · MTD software directory (A to Z)
Last checked against GOV.UK on 18 October 2026. Not tax advice.
Frequently asked questions
Is free MTD software good enough for a landlord with one property?
It may be. HMRC says free products exist for simple tax affairs. Check that the product supports UK property and the tax return submission (GOV.UK).
How do I know free software works with MTD?
Check that it's listed on HMRC's software finder. HMRC says all software listed there has passed its recognition process. You can tick the "free version" filter, or use the finder's "check if my software is compatible" option to look up a named product.
What happens if I outgrow a free plan?
That depends on the provider. You can change software, and HMRC suggests the end of the tax year may be easiest. Keep your old records accessible (GOV.UK).
Is there free MTD software that also files the year-end tax return?
Some free products say they do and others say it's still in development. In our 18 October 2026 table, flonancial and Sage Sole Trader's free plan state they cover the year-end return, and HMRC's finder listed both for the tax return. aligned.tax says it's "coming soon", and HMRC's finder listed it for quarterly updates only, saying tax return features should be ready for the 2026 to 2027 return (HMRC software finder). Check the provider's current page, because this is changing quickly.
I have rental income and a sole trader business. Does free software cover both?
Sources
- aligned.tax (vendor, checked 2026-10-18)
- flonancial.co.uk (vendor, checked 2026-10-18)
- mytaxdigital.co.uk (vendor, checked 2026-10-18)
- sage.com: Sage sole trader (vendor, checked 2026-10-18)
- usehammock.com: Pricing (vendor, checked 2026-10-18)
- landlordvision.co.uk: Pricing (vendor, checked 2026-10-18)
- quickbooks.intuit.com: Pricing (vendor, checked 2026-10-18)
- vitaltax.co.uk (vendor, checked 2026-10-18)
- xero.com: Pricing plans (vendor, checked 2026-10-18)
- GOV.UK: Choose the right software for making tax digital for income tax
- GOV.UK: Find software that works with making tax digital for income tax
- tax.service.gov.uk: Find making tax digital income tax software (HMRC software finder tool, checked 2026-10-18: 'sole trader or landlord' view, 159 results)
- GOV.UK: Reduction of the mandation threshold from 30000 to 20000 from april 2028
- GOV.UK: If your circumstances change
- GOV.UK: Create digital records
Facts last checked: 18 October 2026.