Tool Review · Updated 2026-04
FreeAgent
FreeAgent is the best value option for sole traders who bank with NatWest or RBS — you get excellent MTD ITSA software essentially free. Standalone at £19/month it competes well against Xero and QuickBooks for straightforward self-employment income.
No commercial relationship — FreeAgent is featured on editorial merit alone.
Verified April 2026 · Source: GOV.UK
FreeAgent and MTD ITSA
FreeAgent is HMRC-recognised for Making Tax Digital for Income Tax Self Assessment across all three rollout phases. It is one of the few tools purpose-built for UK sole traders and freelancers rather than adapted from a general small business product.
MTD ITSA Rollout Phases
- Phase 1 — April 2026 Live ✓ Supported
Income over £50,000
- Phase 2 — April 2027 ✓ Supported
Income over £30,000
- Phase 3 — April 2028 ✓ Supported
Income over £20,000
Phase support verified against GOV.UK software finder . Always confirm with the software provider before your obligation date.
GOV.UK verification: FreeAgent’s MTD ITSA recognition is listed on the GOV.UK software finder. Status correct as of April 2026.
Verified April 2026 · Source: GOV.UK
No commercial relationship: FreeAgent is a NatWest Group subsidiary and does not operate an affiliate programme. This review is entirely independent. We do not earn any commission if you sign up.
The NatWest deal: free MTD ITSA software
If you bank with NatWest, Royal Bank of Scotland (RBS), or Ulster Bank (business account), FreeAgent is included in your account at no additional cost. Given that the Sole Trader plan would otherwise cost £19/month (£228/year), this is a significant saving — and it covers a large proportion of UK sole traders in Phase 1 who are likely to already have a NatWest business account.
Screenshot: FreeAgent MTD ITSA submission
FreeAgent’s quarterly update interface for MTD ITSA — reviewed April 2026.
Tax timeline: FreeAgent’s strongest feature
FreeAgent’s tax timeline is genuinely the best in class. It shows you exactly when your quarterly MTD ITSA submissions are due, when your self assessment return is due, and what your estimated tax bill looks like in real time. For sole traders anxious about missing HMRC deadlines, this alone is worth the subscription.
Standalone vs NatWest
If you are not a NatWest/RBS customer, FreeAgent at £19/month competes well against QuickBooks Simple Start (£14/month) and Zoho Books (from £12/month). The UK-native design and tax timeline justify the small premium for many sole traders. For budget-first decisions, Zoho Books is cheaper and equally MTD ITSA-capable.
MTD ITSA Phase Support
MTD ITSA Rollout Phases
- Phase 1 — April 2026 Live ✓ Supported
Income over £50,000
- Phase 2 — April 2027 ✓ Supported
Income over £30,000
- Phase 3 — April 2028 ✓ Supported
Income over £20,000
Phase support verified against GOV.UK software finder . Always confirm with the software provider before your obligation date.
FreeAgent is HMRC-recognised for all three MTD ITSA phases. It is a NatWest Group subsidiary — there is no affiliate programme. Featured on editorial merit only.
Landlord support: Basic property income tracking. Suitable for a simple buy-to-let alongside self-employment income. Not ideal for complex or multi-property portfolios.
CIS support: Not a CIS tool. Basic CIS recording only — not recommended for active CIS subcontractors.
Pricing (GBP)
| Plan | Price/mo | Contacts | |
|---|---|---|---|
| Sole Trader | £19/mo | Get started → | |
| Partnership / LLP | £29/mo | Get started → | |
| Limited Company | £35/mo | Get started → |
Free with an active NatWest, RBS, or Ulster Bank business current account. Standalone pricing shown above. Prices exclude VAT.
Last verified: April 2026
What we like
- + HMRC-recognised for all three MTD ITSA phases
- + Free with NatWest/RBS business banking (covers most Phase 1 sole traders)
- + Built specifically for UK freelancers and sole traders
- + Excellent Self Assessment and tax timeline tools
- + Strong deadline reminders for quarterly submission dates
What we don't like
- − No affiliate programme — NatWest subsidiary
- − Less feature-rich than Xero or QuickBooks for complex businesses
- − Basic CIS support — not suitable for active CIS work
- − Multi-property landlords should look elsewhere
Who it's best for
- ✓ Sole traders banking with NatWest, RBS, or Ulster Bank
- ✓ Freelancers who want purpose-built UK sole trader software
- ✓ Anyone who wants strong tax deadline reminders alongside MTD ITSA
Not ideal if
- ✗ CIS subcontractors needing full CIS management
- ✗ Landlords with more than one or two properties
- ✗ Users needing inventory or multi-currency