9 Free HMRC-Approved MTD Software For Accountants and Tax Agents

MTD for Income Tax is live, and HMRC's recognised software list has grown to nearly 100 products. Some handle property. Some handle self-employment. Some are listed but not yet operational.

That creates a real problem for accountants and tax agents. Which of these 100 products actually works for a practice? Which handles joint ownership, agent submissions, or mixed-income clients? Does it even have a proper agent portal?

The questions are endless. This guide answers them. We reviewed the list, tested the options, and pulled out the nine best free HMRC-recognised MTD software for accountants and tax agents, with pros, cons, pricing conditions, and a comparison table. Plus, if you are a FigsFlow subscriber, there is a way to get the top-ranked software at up to 50% off.

This guide focuses on software selection, not MTD basics. If you need a primer first, read: MTD ITSA Guide for Accountants and Tax Agents and How to Onboard MTD Clients Efficiently.

1. RentalBux

RentalBux is free HMRC-recognised MTD software for accountants, tax agents and landlords covering UK Property, Foreign Property, and Self-Employment income. Purpose-built by UK Property Accountants, a specialist practice managing returns for over 1,500 landlords, it handles complex client scenarios including property portfolios, mixed income, joint ownerships, partnerships, and LLPs. Bank feed integration, OCR bill capture, automated expense categorisation, and a dedicated accountant dashboard come included as standard.

Key Details of RentalBux

• Best for: Property accountants, partnership & LLP practices, mixed-income client management
• Accreditation: Fully recognised for MTD: UK Property, Foreign Property, and Self-Employment
• Pricing:Free plan available until March 2028 (one property or one business). Paid plans free until August 2026. Contact for Accountant Partner Programme pricing.
• Supported structures: Individuals, joint owners, sole traders, partnerships, LLPs, limited companies
• Special feature: Advanced profit-sharing calculations for multiple landlords and complex ownership structures
• Accountant Features: Multi-client management, agent submissions, MTD workflow automation, deadline tracking, client-level reporting

Pros of RentalBux

• Full HMRC recognition across all three MTD for Income Tax modules — no gaps in coverage
• MTD software combining property management, self-employment accounting, and MTD compliance in one platform
• Handles complex joint ownership, partnership, and LLP structures other software cannot manage
• MTD workflows built in for accountants with automated quarterly submissions and year-end declarations
• Pre-built, trade-specific charts of accounts mapped to SA boxes — zero configuration needed
• Bank feed integration, OCR bill capture, and automated expense categorisation
• Designed by practising UK property accountants who understand real client scenarios
• Free until March 2026 — zero cost to onboard your entire client base before the deadline

Cons of RentalBux

• Primarily designed for property and self-employment income — not a general commercial accounting platform
• Limited company features focus on property portfolios rather than full corporate accounting

Why RentalBux Ranks First for Accountants

Most MTD software handles either property or self-employment, not both. Most treats property income generically. RentalBux was built specifically for accountants managing mixed-income clients at scale, with the workflows, entity coverage, and agent tooling to match.

Start your free trial at rentalbux.com →

Start Your MTD Software Search Here

2. @Coconut

@Coconut is an user-friendly accounting platform designed to help accountants and tax agents successfully transition their customers to Making Tax Digital (MTD). It is based on simple yet powerful principle: make accounting simple for sole traders and landlords by giving accountants everything they need to manage clients and stay compliant with MTD.

Key Details of @Coconut

• Best for: Sole traders and landlords
• Accreditation: Officially recognised by HMRC for MTD for Income Tax software provider
• Mobile app availability: Available via mobile app and web browser access
• Supported income types: Sole trader income, UK property income, foreign property income
• Special feature: AI-powered receipt processing and automatic categorisation via mobile app

Pros of @Coconut

• Business banking partnership: Enjoy 24 months of free access when you open a Zempler business account with just a deposit of £100.
• 30-day free trial: Access all features without payment commitment before subscription begins
• Real-time bank integration: Securely connects with over 30 UK banks and credit cards for automatic transaction import
• Accountant collaboration: Built-in Partner Portal enables real-time record sharing with accountants

Cons of @Coconut

• Monthly subscription required: £9.95 per month (inc VAT) after 30-day trial period ends
• No perpetual free version: Unlike competitors, requires ongoing payment for continued access
• Sole trader focus: Does not serve VAT-registered businesses or other entity types

3. Clear Books Free

Clear Books Free is the free version of Clear Books. It provides essential MTD features like digital record keeping, tax filing and professional-grade accounting for free. It is best known for its excellent rating across several review sites like Trustpilot and AI-powered automated features such as intelligent transaction categorisation.

Key Details of Clear Books Free

• Best for: Small to medium-sized sole traders and property owners requiring full accounting features
• Accreditation: HMRC recognised for both MTD VAT and MTD Income Tax compliance
• Mobile app availability: Full mobile app with offline capability and cloud synchronisation
• Supported income types: Sole trader income, UK property income
• Special feature: AI-powered transaction coding that automatically categorises transactions and reduces manual entry

Pros of Clear Books Free

• Free to use: No cost for core features, making it ideal for small businesses and sole traders
• Unlimited users: All plans include unlimited user access with customisable permissions
• Direct VAT submission: Medium and Large plans submit VAT returns directly to HMRC
• Bank integration: Automated bank feeds from 70+ UK banks using secure open banking connections
• Flexible upgrade path: Option to move to a paid plan if more advanced features are needed

Cons of Clear Books Free

• Limited multi-currency: Multi-currency accounting only available on Large plan (£36/month)
• No cash flow forecasting: Platform does not offer automated cash flow projection features
• No access to full reporting tools: Only basic reports are included; advanced financial reports require an upgrade
• No MTD VAT submissions: VAT registered businesses must upgrade to a paid plan

4. FreeAgent

FreeAgent is a cloud based accounting software that supports both MTD for VAT and MTD for Income Tax Self Assessment (ITSA). It is based on simple motto: spotlight what matters most and automate admin for small businesses. It is best known for its user-friendly design with professional grade functionality and its ability to provide sophisticated features without sacrificing ease of use.

Key Details of FreeAgent

• Best for: Established accounting practices and bookkeepers serving diverse client bases
• Accreditation: HMRC-recognised for MTD VAT and MTD Income Tax (both agents and businesses)
• Mobile app availability: Available with full feature access
• Supported income types: Sole trader income, UK property income
• Special Feature: Dedicated FreeAgent for Landlords platform available

Pros of FreeAgent

• Free with select bank accounts: Get FreeAgent at no cost if you have a business current account with NatWest, RBS, Ulster Bank or a Mettle account
• Established track record: Founded in 2013 with proven experience in UK accounting software market
• Comprehensive integrations: Direct connections with PayPal, Stripe, GoCardless, and 40+ business apps
• API access included: Full API functionality available across all plans for custom integrations

Cons of FreeAgent

• Optional add-ons may cost extra: Features like unlimited receipt and bill capture or Amazon integration may require additional payment
• Limited landlord features: Platform primarily designed for business accounting rather than property management
• Learning curve requirement: Professional features require time investment to master effectively
• Limited support for growing businesses: As your needs expands (e.g. VAT, payroll, or complex reporting), you may need to upgrade plan.

5. QuickFile Accounting Software for MTD IT

QuickFile is a UK-based, cloud accounting software platform designed primarily for small to medium sized businesses, freelancers, accountants and tax agents. It is fully HMRC-recognised and supports Making Tax Digital (MTD) for both VAT and the upcoming Income Tax Self Assessment (ITSA) requirements.

Key Details of QuickFile Accounting Software

• Best for: Small businesses and accountants managing budget-sensitive clients
• Accreditation: Listed on HMRC's Software Choices page, supporting MTD ITSA pilot scheme
• Mobile app availability: iOS and Android apps for receipt scanning and mobile access
• Supported income types: Sole trader income, UK property income
• Special Feature: Fully branded client portal that lets your clients view and pay documents

Pros of QuickFile Accounting Software

• Genuinely free for small businesses: Completely free for accounts with under 1,000 nominal transactions per 12 months
• No user limits: Unlimited users included on all plans including free tier
• Comprehensive MTD support: Full MTD VAT and Income Tax compliance included in free version
• Mobile receipt scanning: iOS and Android apps with OCR technology for expense capture
• Payment processor integrations: Direct connections with Stripe, PayPal, GoCardless, and major UK payment systems

Cons of QuickFile Accounting Software

• Transaction limit threshold: Free plan restricted to 1,000 nominal transactions per rolling 12-month period
• Paid upgrade required: Large (£45/year) and Extra Large accounts automatically charged for excess transactions
• Limited advanced features: Multi-currency, project accounting, and advanced reporting require paid plans
• Bank feed charges: Automated bank feeds cost additional £15 + VAT per year

6. Sage Individual (Free)

Sage Individual (free) is a free web-based accounting solution offered by Sage for Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA). It is designed specifically for self-employed sole traders with basic needs.

Key Details of Sage Individual (Free)

• Best for: Non-VAT registered sole traders with basic needs
• Accreditation: HMRC-recognised MTD-ready software with Treasury backing for free provision
• Mobile app availability: Access through Sage's established mobile platform infrastructure
• Supported income types: Sole trader income (specifically designed for non-VAT registered businesses)
• Special feature: Agent access for accountants and tax professonals

Pros of Sage Individual

• Treasury-backed free provision: Government arrangement ensures long-term availability at no cost
• Enterprise-grade security: Two-factor authentication, data encryption, and professional-level security features
• HMRC direct integration: Seamless quarterly submission process with automated workflow capabilities
• MTD compliance guarantee: Purpose-built for MTD requirements with ongoing compliance updates

Cons of Sage Individual

• Non-VAT registered only: Exclusively designed for sole traders who are not VAT registered
• No property income support: Does not handle rental or property income streams
• Limited business types: Cannot be used by partnerships, limited companies, or VAT-registered entities
• Feature scope restriction: Basic functionality compared to full Sage Accounting products

7. Self Assessment Direct

Self Assessment Direct is a free online service designed to help individuals and agents submit Self Assessment Tax Returns in line with Making Tax Digital (MTD) requirements. The platform focuses on simplicity and accessibility, particularly for users who prefer spreadsheets.

Key Details of Self Assessment Direct

• Best for: Accounting practices transitioning existing self-assessment clients to MTD
• Accreditation: HMRC-recognised for MTD Income Tax with bridging capabilities
• Mobile app availability: Web-based platform with mobile-responsive design
• Supported income types: Sole trader income, UK property income, foreign property income
• Special feature: Connects existing records and workflows to MTD submission requirements

Pros of Self Assessment Direct

• Quarterly submission automation: Direct HMRC connection for reliable quarterly update processing
• Flexible tax periods: Supports both standard (6 April – 5 April) and calendar (1 April –31 March) update periods
• Web-based and cross-platform: Works on Windows, Mac, Linux, Android, and iOS without requiring installation
• Bridging software included: Allows users to submit data directly from spreadsheets, ideal for those who prefer Excel over full accounting software

Cons of Self Assessment Direct

• Limited standalone functionality: Focuses on compliance bridging rather than comprehensive business management
• Requires existing systems: Must be used alongside other record-keeping or accounting software
• Basic reporting capabilities: Does not provide advanced financial reporting or business analytics
• Professional-only design: Interface and features primarily suited for tax professionals rather than end users

8. TaxNav

TaxNav is a UK-based MTD software. It is based on simple motto: make taxes simple and it is delivering on that with its simple platform that lets users manually enter or link spreadsheets, and it uses AI to reduce mistakes and give real time tax estimates.

Key Details of TaxNav

• Best for: Users seeking maximum simplicity and guided tax compliance workflows
• Accreditation: HMRC-recognised MTD software with bridging capabilities
• Mobile app availability: Not available
• Supported income types: Sole trader income, UK property income, foreign property income
• Special feature: Step-by-step processes for MTD submission and record maintenance

Pros of TaxNav

• Browser based: No downloads or installation required
• Purpose-built for self-employed and landlords: Designed specially for users with income from self-employment or property
• Smart Reminders: Keeps you on track with HMRC deadlines and requirements
• Built by Experts: Developed by the team behind MD for VAT, with deep experience in HMRC systems

Cons of TaxNav

• Basic feature set: Simplicity focus limits advanced accounting and business management functionality
• Guided workflow restrictions: Step-by-step processes cannot accommodate unique or complex business requirements
• Limited scalability: Not designed for high-volume transactions or multi-entity business structures
• Minimal professional tools: Lacks sophisticated features required by established accounting practices

9. Zoho Books

Zoho Books is a cloud-based accounting software that enables businesses to maintain digital records, automate tax calculations, and submit returns directly to HMRC via a single platform. It supports both VAT and Income Tax submissions thereby meeting all HMRC digital record keeping and reporting requirements.

Key Details of Zoho Books

• Best for: Accounting firms and small businesses
• Accreditation: HMRC-recognised for both MTD VAT and MTD Income Tax compliance
• Mobile app availability: Available for iOS and Android platforms
• Supported income types: Sole trader income (MTD Income Tax feature currently available on request)
• Special feature: Connects with 40+ Zoho business applications

Pros of Zoho Books

• Generous transaction limits: Up to 1,000 invoices per year included in free plan
• Mileage & CIS Tracking: Useful for contractors and service-based businesses
• Advanced Reporting: Offers P&L, balance sheet and over 50 detailed reports
• MTD-Ready: Supports MTD for Income Tax and Self Assessment (SA103F & SA103S)

Cons of Zoho Books

• Limited users: Only suppors 1 user and 1 accountant, which may not be enough for growing teams
• No customisation: Lacks custom fields, reports, and journal templates available in higher tiers
• No workflow automation: Advanced automation and approval workflows are only in paid plans
• MTD Income Tax by request only: Advanced MTD features currently require special request rather than standard access
• Ecosystem dependency: Maximum value requires adoption of broader Zoho business application ecosystem

Quick Comparison of Free HMRC-Recognised MTD Software for Accountants & Tax Agents

Which Free MTD Software Is Right for Your Practice or Your Clients?

The nine free HMRC-recognised MTD software in this guide are RentalBux, @Coconut, Clear Books Free, FreeAgent, QuickFile, Sage Individual, Self Assessment Direct, TaxNav, and Zoho Books. All offer a free plan or a free period, with paid tiers available beyond that. Most are built with accountants and tax agents in mind.

With the first quarterly update deadline approaching in August 2026, there is not much time. Pick one, test it with a client, and get moving.

Start Preparing Now. At No Cost.

RentalBux is free until March 2028. Onboard your client base, test workflows, and prepare before mandatory submissions begin.

Explore RentalBux for Accountants

Get the #1 MTD Software at Up to 50% Off

FigsFlow subscribers automatically qualify for the RentalBux Partner Programme from their first two MTD clients. The benefits grow as your client base does.

For more information on the FigsFlow-RentalBux Partner Programme, book a demo with RentalBux and speak with the sales team directly.

MTD Resources Accountants & Tax Agents

Conclusion

MTD for Income Tax is live now for sole traders and landlords earning over £50,000, with the £30,000 threshold arriving in April 2027 and £20,000 in April 2028.

All nine tools in this guide are free MTD software recognised by HMRC. Match the right one to your client's income type using the comparison table above, then test it with one client before rolling it across your practice.

If you are an accountant, the next bottleneck after MTD compliance is usually client onboarding. Engagement letters, AML checks, and pricing agreements all need to keep pace with quarterly submission deadlines. FigsFlow handles all of that in one platform built specifically for UK accounting practices.

Frequently Asked Questions (FAQs)