Free MTD Software for UK Sole Traders 2026 — Every Option Compared

Do you actually have to pay for MTD software? The short answer is no — but the free options vary enormously in what they cover. Some are full accounting platforms. Others only handle the quarterly submission itself and leave everything else to you.

This guide covers every credible free route to MTD compliance for UK sole traders in 2026, with an honest view of where each option works and where it falls short.

FreeAgent — free for NatWest, RBS, Ulster Bank and Mettle customers

Cost: Free (with eligible business bank account) or £19/month + VAT direct Best for: Sole traders who bank with NatWest Group — the most capable free option available

FreeAgent is the most significant free option in this space, and the one that will suit most sole traders best — if you qualify.

Business customers of NatWest, Royal Bank of Scotland, Ulster Bank, and Mettle (NatWest's digital business account) get the full FreeAgent product at no cost. This is not a stripped-back version. You get bank feeds, invoicing, MTD quarterly submissions, Self Assessment filing, a real-time tax timeline, and receipt capture.

Feature	Included free via NatWest/Mettle
Bank feeds (Open Banking)	Yes
MTD quarterly submissions	Yes
Self Assessment filing	Yes
Real-time tax estimate	Yes
Invoicing	Yes
Mobile app	Yes
Payroll	No (paid add-on)

If you bank elsewhere, FreeAgent costs £19/month + VAT — more than the other paid options. But for NatWest Group customers, it is the best value accounting tool in the market by a significant margin.

Sage Sole Trader — a free tier with no bank account required

Cost: Free tier available; paid plans from £7/month Best for: Sole traders who do not bank with NatWest Group but want a free HMRC-recognised option

Sage offers a free tier for sole traders under its Sage Sole Trader product. Unlike FreeAgent's free access, this does not require a specific bank account. Anyone can sign up.

The free Sage Sole Trader tier covers MTD quarterly updates submitted directly to HMRC, basic invoice creation, and income and expense recording. The main limitations are a monthly cap on invoices and no automatic bank feed — you either upload a bank statement or enter transactions manually.

For sole traders with simple finances and low invoice volumes, the free Sage tier is a practical no-cost option. For those who want bank feeds and more automation, the paid Sage tiers (from £7/month) or FreeAgent via NatWest are better choices. See our Sage review for the full breakdown.

Starling Bank — MTD tools included with a free business account

Cost: Free (with Starling Business current account) Best for: Sole traders who want free digital banking with MTD compliance built in

Starling's free business current account includes built-in MTD tools for sole traders. You track income and expenses within the Starling app and submit quarterly updates directly, without a separate software subscription.

Starling works well for very simple finances. Its main limitation is depth — there is no invoicing, no Self Assessment help, and no detailed tax estimation. If you want your accounting software to do more than just submit quarterly updates, Starling alone will not be enough.

Worth considering if you are moving to digital banking anyway and your financial situation is genuinely simple.

SumUp — free tier for existing SumUp users

Cost: Free (basic tier) Best for: Sole traders already using SumUp card readers

SumUp launched MTD-compatible accounting tools in 2026. The free tier covers basic income and expense tracking and quarterly HMRC submissions. It integrates with SumUp's payment tools, which is an advantage if you already use SumUp to take card payments.

For sole traders outside the SumUp ecosystem, the free tier is functional but limited compared to FreeAgent or Sage.

HMRC's free digital service

Cost: Free Best for: Extremely simple one-stream sole traders only

HMRC provides a basic free tool for MTD submissions through the Government Gateway. You enter your quarterly income and expense totals manually and submit. No bank feeds, no invoicing, no Self Assessment support, no tax estimation.

This technically meets the MTD compliance requirement but adds significant manual admin. For anyone with a moderate volume of transactions, the time cost of manual entry outweighs the saving of a small monthly software subscription.

Bridging software — keep your spreadsheet, add MTD compliance

Cost: From free; some paid options from around £5–10/month Best for: Sole traders committed to spreadsheet record-keeping

HMRC allows digital records maintained in spreadsheets, but you cannot submit directly from a spreadsheet. Bridging software reads from your spreadsheet and submits the quarterly totals to HMRC via the MTD API.

Some bridging tools have free tiers. They are a reasonable option if you have an established spreadsheet system you trust and do not want to migrate to full accounting software. They handle the MTD submission only — invoicing, tax estimation, and Self Assessment remain your responsibility.

See our full guide to spreadsheets and MTD for the digital link rules HMRC requires.

Comparison: free options at a glance

Option	Bank account required	MTD submissions	Bank feed	Self Assessment	Invoicing
FreeAgent (via NatWest/Mettle)	Yes — NatWest Group	Yes	Yes	Yes	Yes
Sage Sole Trader (free tier)	No	Yes	No	No	Limited
Starling Bank	Yes — Starling	Yes	Built in	No	No
SumUp free tier	No	Yes	Limited	No	Basic
HMRC digital service	No	Yes	No	No	No
Bridging software	No	Yes (with spreadsheet)	No	No	No

The honest view

For most sole traders, the question is not really "free vs paid" — it is whether you qualify for FreeAgent via NatWest or Mettle. If you do, take it. It is the most capable accounting tool in this space and it costs nothing if you hold the right bank account.

If you do not bank with NatWest Group, Sage's free tier is the next best free option — HMRC-recognised, no bank account requirement, adequate for simple finances.

If neither fits, QuickBooks at £10/month is the lowest-cost entry point for a full-featured paid MTD tool with bank feeds, Self Assessment, and mobile expense capture.