FreeAgent Review: MTD Software for Sole Traders and Freelancers (2025)
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Reviewed by SoleTraderGuide Editorial TeamMTD Software AnalystLast reviewed 1 March 2025
FreeAgent is our top pick for freelancers and sole traders. It was purpose-built for self-employed people from day one, and it shows. The tax timeline dashboard, self-assessment filing, and MTD submissions are all included — and if you bank with NatWest or RBS, you get the whole platform for free. For NatWest/RBS customers, it is simply the best deal in the market.
- Best for
- Freelancers and sole traders — especially NatWest/RBS customers
- Starting price
- £19/month sole trader plan (free with NatWest/RBS)
Pros and Cons
What we like
- Purpose-built for freelancers and sole traders
- Free with NatWest, RBS, Ulster Bank, or Mettle business accounts
- Self-assessment filing included in all plans
- HMRC-recognised MTD software
- Tax timeline dashboard keeps you on track
Watch out for
- Higher monthly price if paying directly
- Less suitable for more complex businesses
- Limited multi-currency support
Key Features
FreeAgent was built specifically for freelancers and sole traders. Every feature in the platform reflects that focus.
MTD Income Tax Submissions
FreeAgent is fully HMRC-recognised for MTD ITSA. It submits your quarterly updates and End of Period Statement directly to HMRC from within the platform.
Self-Assessment Filing Included
Unlike most competitors, FreeAgent includes self-assessment tax return filing in its standard plans. This is a significant differentiator that saves sole traders accountant fees.
Invoice and Expense Tracking
Create, send, and track invoices. Log expenses using the mobile app — photograph a receipt and FreeAgent extracts the data. All feeding directly into your MTD quarterly figures.
Tax Timeline Dashboard
FreeAgent's tax timeline shows you all upcoming tax deadlines, estimated amounts owed, and what you've already paid. A unique feature that helps sole traders avoid January surprises.
Time Tracking
Log time against projects or clients directly in FreeAgent. Hours are converted to invoices automatically — particularly useful for consultants and freelancers who bill by the hour.
Project Tracking
Track income and expenses against specific projects or clients. FreeAgent shows you which projects are profitable and which are not — essential intelligence for freelancers.
Is FreeAgent Good for MTD Income Tax?
FreeAgent is fully HMRC-recognised for Making Tax Digital for Income Tax Self Assessment. It can handle all four quarterly updates as well as the End of Period Statement (EOPS), submitting these directly to HMRC from within the platform. The workflow is clean and intuitive — you don't need to understand the technicalities of MTD to use it correctly.
The tax timeline dashboard is one of the standout features in the market. It shows you all upcoming HMRC deadlines, an estimated amount owed for each deadline, what you've already paid, and what is still due. For sole traders who find tax deadlines stressful or hard to track, this feature is genuinely transformative — you always know where you stand.
FreeAgent also includes self-assessment tax return (SA100) filing as part of its standard plans. This is a significant differentiator — most other platforms either don't include this or charge extra via an accountant integration. Being able to file your self-assessment directly from FreeAgent can save sole traders £100–£300 in accountant fees per year.
Under MTD for Income Tax (mandatory from April 2026 for income over £50,000), quarterly updates effectively replace the traditional annual return for self-employment income. FreeAgent is well-positioned for this transition, having already handled quarterly reporting for MTD VAT customers for years.
How Much Does FreeAgent Cost?
FreeAgent has a straightforward pricing structure. Notably, it is available for free to qualifying NatWest and RBS business bank account holders.
| Plan | Price | What's included |
|---|---|---|
| NatWest/RBS customersFree | £0/month | Full FreeAgent platform — all features including self-assessment filing |
| Sole Trader | £19/month | All features — MTD, self-assessment, invoicing, expenses, time tracking |
| Partnership | £24/month | All features for partnerships |
| Limited Company | £29/month | All features including Corporation Tax return |
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Who FreeAgent is Best For
- ✓Freelancers, consultants, and contractors
- ✓Sole traders earning under £100,000/year
- ✓NatWest or RBS business account holders (free access)
- ✓Those who want self-assessment filing included
- ✓Sole traders who bill clients by the hour (time tracking)
Who Should Look Elsewhere
- ✗Very complex businesses with multi-currency needs
- ✗Those needing extensive third-party app integrations
- ✗Businesses needing payroll for multiple employees
- ✗Non-NatWest/RBS customers on very tight budgets (£8/month QuickBooks SE may suit better)
Alternatives to FreeAgent
QuickBooks Self-Employed
From £8/month for sole traders — cheaper if you don't have NatWest/RBS. Less comprehensive but lighter and affordable.
Read review →
Xero
More powerful for growing businesses. Better integrations and invoicing tools. Recommended if you plan to expand.
Read review →
Sage
UK-native with UK-based support. Good alternative if you value UK customer service and compliance focus.
Read review →
Frequently Asked Questions
Editorial note: This review was produced by the SoleTraderGuide editorial team. We assess software based on hands-on testing, published documentation, and user feedback. Our ratings are independent of commercial arrangements. We may earn a commission if you purchase via our links. Read our editorial policy.
Ready to try FreeAgent?
Start a 30-day free trial — no credit card required. NatWest/RBS customers can access FreeAgent free forever.