Guides · Published 18 July 2026 · Updated 15 August 2026
Best free MTD software 2026: every option and its limits
You do not have to pay to comply with Making Tax Digital (MTD) for Income Tax. On HMRC’s own list, find software that works with Making Tax Digital for Income Tax (opens in a new tab), filtering for individuals with a free version returned 31 products when we checked on 14 August 2026, and around 19 of those cover both quarterly updates and the tax return free. But “free” hides a lot of different limits.
The details below were verified on 16 July 2026 and re-checked against HMRC’s finder on 14 August 2026; we re-check each quarter. MTD software changes fast, and the finder’s “free version” flag has been wrong before. Treat prices and limits as “true when checked”, and confirm on the provider’s own site before you rely on them.
The genuinely-free options at a glance
| Type of option | Free for | The main catch |
|---|---|---|
| Unconditionally free tools (e.g. My Tax Digital, Self Assessment Direct, Acxite, TaxUpdates) | Filing quarterly updates, no cap | Some are bridging tools that still need a spreadsheet, so check what help and support each one offers before deadline week |
| Adminsoft | Full accounting, free | Windows desktop software, not a website: heavier than most single landlords or sole traders need |
| In-bank filing (Monzo) | Free for business account customers: filing runs inside the app, on every business plan including the free one (verified 11 August 2026) | You need that bank account, and it works from that account’s transactions, so income arriving elsewhere still needs bringing in |
| Bank-bundled software (e.g. FreeAgent, Coconut) | Free while you bank with a partner (FreeAgent via NatWest / RBS / Mettle; Lloyds, Starling, Tide, SumUp and Coconut showed free versions on HMRC’s finder on 14 August 2026) | Tied to that bank; FreeAgent on Mettle is limited to one transaction a month |
| Capped free tiers (e.g. Sage, Zoho, QuickFile) | Light use only | Hard caps you can outgrow mid-year (Sage 5 invoices a month, QuickFile 1,000 ledger entries in a rolling 12 months) |
What does “free” usually cost you?
- Support: free tiers often mean little or no help in deadline week. Fine until something goes wrong.
- Typing: many free tools are manual entry only, so you key in every transaction yourself.
- Lock-in: bank-bundled software is only free while you stay with that bank.
- Caps: invoice or ledger limits can stop you exactly when a busy quarter needs the tool most.
How do you choose a free MTD tool?
If your affairs are genuinely simple and you don’t mind typing, a free tool will keep you compliant: that is what they are for. Pay only when something specific is worth it to you: your bank statement doing the typing, categories suggested for you, or a person answering email when a deadline is close.
Is QuarterFile free?
QuarterFile’s HMRC recognition is in progress, and filing opens for the 7 February 2027 quarter. When it does, QuarterFile Free will be a genuinely-free option too (one business, manual entry, quarterly updates and your final declaration, with reminders and email support), and QuarterFile Plus (£12.50 a quarter, first quarter free) will add CSV import, suggested categories and a tax set-aside estimate for people who’d rather not type. Until then, if you’re mandated for 2026-27, pick one of the free tools above and let us remind you before each deadline: no account, no software sign-up.
Not sure when MTD applies to you?
Take the two-minute checkerAlready know your date? Get an email before each deadline.
This guide is general information, not tax advice. For your own position, check with your accountant or HMRC.