NatWest Free MTD Software — What Sole Traders Need to Know About FreeAgent

NatWest business account holders get FreeAgent — one of the most popular MTD accounting tools for UK sole traders — completely free. If you bank with NatWest, RBS, Ulster Bank, or Mettle and haven't claimed this yet, you're paying for software you don't need to.

What is the NatWest FreeAgent deal?

FreeAgent is cloud-based accounting software built specifically for UK freelancers and sole traders. It normally costs £19/month plus VAT (£22.80 including VAT). NatWest, as part of its business banking offering, provides FreeAgent free of charge to eligible business account holders.

This is not a lite or restricted version. NatWest customers get the full FreeAgent product — the same software available to paying subscribers — including all MTD for Income Tax features, Self Assessment filing, bank feeds, and invoicing.

The same benefit extends to business customers of:

• Royal Bank of Scotland (RBS) — NatWest's sister bank
• Ulster Bank — part of the NatWest Group
• Mettle — NatWest's dedicated digital business account for sole traders and freelancers

Does it cover MTD for Income Tax?

Yes. FreeAgent is HMRC-recognised software for Making Tax Digital for Income Tax. The NatWest-bundled version is the same HMRC-approved product.

For sole traders affected by MTD, FreeAgent handles:

• Quarterly digital updates — submitted directly to HMRC from within the app, no bridging software required
• Bank feeds — transactions sync automatically via Open Banking, including from your NatWest business account
• Income and expense categorisation — FreeAgent learns your recurring transactions over time
• End of Period Statement — the annual finalisation step required under MTD
• Self Assessment — FreeAgent populates your SA100 from your bookkeeping data and submits directly to HMRC

What FreeAgent includes for sole traders

Beyond MTD compliance, the NatWest FreeAgent benefit gives you:

Tax timeline dashboard — shows your estimated tax liability updated in real time throughout the year, upcoming payment on account dates, and what you owe HMRC. Removes the January self-assessment shock.

Invoicing — create professional invoices with your logo and business details. Set up recurring invoices and automatic late-payment reminders.

Expenses and receipt capture — log expenses via the web app or mobile app. Photograph receipts on your phone to create digital records compliant with HMRC's MTD requirements.

Self Assessment filing — produce your SA100 from within FreeAgent and submit directly to HMRC. For sole traders who currently pay an accountant £150–400 to file their return, this feature alone often justifies the software subscription — and with NatWest, it costs nothing.

UK-based phone support — FreeAgent offers UK phone support, which is not standard across all MTD software providers.

What to watch out for

It's tied to your bank account. If you close your NatWest, RBS, Ulster Bank, or Mettle account, you lose your free FreeAgent access. FreeAgent will typically offer a transition to a paid subscription, but your data is not automatically deleted — you will have time to decide.

It's a benefit, not a forever guarantee. NatWest has offered this benefit consistently for several years, but it is subject to change. Banks can and do alter bundled product offers. Check the current terms with NatWest if continuity matters to you.

FreeAgent has limitations for complex businesses. For a straightforward sole trader — service income, standard expenses, one business — FreeAgent is well-suited. If you have complex multi-currency needs, sophisticated inventory requirements, or want deep third-party integrations, Xero may serve you better. But for most sole traders, FreeAgent is more than sufficient.

How to claim FreeAgent through NatWest

1. Log in to your NatWest business online banking
2. Look for the FreeAgent benefit in your account benefits or rewards section
3. Follow the link to create or connect your FreeAgent account
4. Connect your NatWest business account via Open Banking within FreeAgent

If you already have a paid FreeAgent account, contact FreeAgent directly — they can transfer your existing data and subscription to the bank-linked free account.

What if I don't bank with NatWest?

If you're not a NatWest, RBS, Ulster Bank, or Mettle customer, FreeAgent costs £19/month + VAT on a standard subscription, with a 30-day free trial.

Two options worth considering:

1. Open a Mettle account — Mettle is NatWest's free digital business account designed for sole traders and freelancers. It offers free business banking alongside free FreeAgent. If you're looking for a business bank account anyway, this combination gives you both for £0/month.

2. Compare alternatives — QuickBooks' Sole Trader plan starts at £10/month and covers MTD compliance. Xero starts at £16/month with a stronger feature set and is the most widely used MTD-compatible accounting software for UK sole traders. Try Xero free for 30 days → — or see our cheapest MTD software comparison for a full price breakdown.

For a full assessment of FreeAgent's features and whether it's the right fit for your specific situation, read our FreeAgent review.