Yes, you can do Making Tax Digital for Income Tax without paying for software. We found nine free options on 2 October 2026. Four are free for anyone, one is free for a single rental property, and four are free if you hold a certain bank account.
Free plans differ in what they leave out, so check three things before you choose:
- Quarterly updates. Can you send all four from the free plan?
- The tax return. Can you send your end-of-year tax return from the free plan too? Some can’t yet.
- Your income types. Does it handle rent, self-employment, or both, in the way you need?
GOV.UK says free products are available for people with simple tax affairs, but there may be limits on how you can use them.
Free MTD software at a glance
| Software | Free for | Main limits on the free plan | Quarterly updates | Tax return | Rental income |
|---|---|---|---|---|---|
| Sage Sole Trader Free | Anyone not VAT registered | 1 bank account, 5 invoices a month | Yes | Not confirmed on the free plan | Yes |
| Clear Books Free | Anyone | No bank feeds or invoicing | Yes | Prepared for you; check you can send it | Yes, UK and overseas |
| Zoho Books Free | Anyone | 1 user, 1,000 invoices a year | Yes | Yes for sole traders; “coming soon” for landlords | Yes, UK and overseas |
| My Tax Digital | Anyone | None stated | Yes | Yes | Yes, UK and overseas |
| RentalBux | Landlords with 1 property, until March 2028 | 1 property | Yes | Yes | Yes, including jointly owned |
| FreeAgent | NatWest, Royal Bank of Scotland, Ulster Bank and Mettle business account holders | Landlords need a separate landlord account | Yes | Yes | Yes, including jointly owned |
| Starling | Starling sole trader account holders | Must bank with Starling | Yes | Listed as “coming soon” | Yes |
| Monzo Business | Monzo Business account holders, including the free Lite plan | Must bank with Monzo | Yes | Yes | Yes |
| ANNA | ANNA account holders, for the 2026/27 tax year | Price after 2026/27 not stated | Yes | Yes | Not confirmed |
Every entry comes from the provider’s own website, checked on 2 October 2026. Free plans change often, so confirm the details on the provider’s site before you sign up.
Free MTD software for landlords
With one rental property, RentalBux is free until March 2028. It sends your quarterly updates and tax return, and it splits income for jointly owned property.
With more than one property, look at Clear Books and Zoho Books. Clear Books tracks income and expenses per property and covers UK and overseas lets, but its free plan has no bank feeds. Zoho Books includes bank feeds, but it lists the landlord tax return as “coming soon”.
If you own property jointly, FreeAgent’s landlord account can be shared by joint owners. It’s free only with a qualifying business bank account.
Free MTD software for sole traders
Sage Sole Trader Free suits a simple business that isn’t VAT registered. It connects one bank account, allows five invoices a month and has a mobile app. Sage says the free plan has no time limit.
Zoho Books Free allows more invoices, up to 1,000 a year, and includes bank feeds. Clear Books Free has no transaction limits, but you enter everything by hand.
If you have both rent and self-employment
This is where free plans get awkward. Clear Books gives you a separate free account for each, under one login. FreeAgent also needs two accounts, so you’d need two qualifying bank accounts or one paid plan. My Tax Digital lists self-employment, UK property and overseas property together.
If you keep your records in a spreadsheet
You need bridging software, which links your spreadsheet to HMRC. My Tax Digital has a free bridging mode for Income Tax. Most other bridging tools charge a yearly fee.
If you already bank with one of these
- Monzo Business: MTD filing is included on every plan, including the free Lite plan. It sends quarterly updates and the tax return.
- Starling: the MTD tool is free with a sole trader account. Its end-of-year tax return is listed as “coming soon”.
- NatWest, Royal Bank of Scotland, Ulster Bank or Mettle: FreeAgent is free while you keep the business account. Mettle customers must make at least one transaction a month.
- ANNA: MTD filing is free for the 2026/27 tax year.
Software is only one reason to choose a bank account. Don’t switch banks for free software without comparing the accounts themselves.
Low-cost options if free doesn’t fit
| Software | Lowest price found | Notes |
|---|---|---|
| Landlord Studio | £5 per MTD submission | On its free plan for up to 3 units |
| RentalBux | £4.50 a month, billed yearly | Landlord plan, more than 1 property |
| Clear Books | £5 a month plus VAT | Adds bank feeds and invoicing |
| Xero Simple | £7 a month plus VAT | After a 6-month discount; not for VAT-registered businesses |
| Sage Sole Trader | £7 a month plus VAT | After a 6-month discount |
| Hammock | £8 a month plus VAT | Landlords with 1 to 3 properties |
| QuickBooks Sole Trader Plus | From £10 a month plus VAT | No free plan; 30-day trial |
| FreeAgent | £10 a month plus VAT for landlords, £19 for sole traders | Without a qualifying bank account |
| Coconut | £12.99 a month | MTD filing plan; 14-day trial |
Prices were on each provider’s website on 2 October 2026.
What free MTD software usually leaves out
- Bank feeds. Some free plans make you type in or upload every transaction.
- Receipt scanning and invoicing. These are often limited or kept for paid plans.
- The end-of-year tax return. A few free tools send quarterly updates now and say the tax return is coming later. You need both by 31 January after the tax year ends.
- VAT. Several free plans are only for businesses that aren’t VAT registered.
- A guarantee it stays free. Some offers have an end date, such as March 2028 or the 2026/27 tax year.
Does HMRC provide free MTD software?
We couldn’t find any software made by HMRC itself. GOV.UK sends you to commercial products and says what to look for: software that keeps digital records, sends quarterly updates, submits your tax return and supports all your income sources. Before you choose, check the product appears in HMRC’s software finder.
How we checked
We read each provider’s own pricing and MTD pages on 2 October 2026. Where a provider’s pages disagreed or didn’t say, the table says “not confirmed”. MTD HQ is independent. No provider paid to be listed and this page has no affiliate links.
Sources: each provider link in the first table, and GOV.UK’s guide to choosing software for Making Tax Digital for Income Tax.
Not sure if you need MTD at all? Use our free MTD checker, or see your dates with the MTD deadline finder.