Tool Review · Updated 2026-04
FreshBooks
FreshBooks is best for service-based sole traders who value polished invoicing and client management alongside MTD ITSA compliance. Not ideal for landlords or CIS work. Verify GOV.UK listing before committing.
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Verified April 2026 · Source: GOV.UK
FreshBooks and MTD ITSA
FreshBooks is listed on the GOV.UK software finder as HMRC-recognised for Making Tax Digital for Income Tax Self Assessment. However, we recommend verifying this status directly at GOV.UK before committing to the platform — FreshBooks has a less established MTD ITSA track record than Xero, QuickBooks, or Sage.
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: Always verify FreshBooks’ current MTD ITSA recognition status at the GOV.UK software finder before committing. We verify against this source — not FreshBooks’ marketing materials. Status correct as of April 2026.
Verified April 2026 · Source: GOV.UK
Affiliate disclosure: MTDStack earns approximately £160 per qualifying referral via FreshBooks’ Awin affiliate programme. This does not affect our editorial assessment.
Where FreshBooks stands out
FreshBooks’ strength is invoicing and client management — not accounting depth. If your business is primarily service-based (consulting, design, photography, coaching) and you send polished invoices to multiple clients, FreshBooks’ client portal, proposal tools, and time-tracking integration are genuinely excellent.
Screenshot: FreshBooks MTD ITSA submission
FreshBooks quarterly update interface for MTD ITSA — reviewed April 2026.
When to choose something else
FreshBooks is not the right tool for: landlords with property income, CIS subcontractors, users who need strong accountant integration, or anyone prioritising accounting depth over invoicing quality. For those use cases, Sage or FreeAgent are more appropriate.
The client limits on the Lite plan (5 active clients) will be too restrictive for sole traders with a larger client base — the Plus plan (50 clients) is more realistic for most service businesses.
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.
IMPORTANT: FreshBooks MTD ITSA status should be verified at GOV.UK before publishing and before users commit to the platform. Status shown reflects GOV.UK listing as of April 2026 — re-verify at each content update.
Landlord support: Basic expense and income tracking. Not designed primarily for property income — not recommended for multi-property landlords.
CIS support: No CIS-specific functionality. Not suitable for CIS subcontractors.
Pricing (GBP)
| Plan | Price/mo | Contacts | |
|---|---|---|---|
| Lite | £15/mo | Get started → | |
| Plus | £25/mo | Get started → | |
| Premium | £45/mo | Get started → |
Prices shown are monthly and exclude VAT. UK pricing in GBP. Annual billing available at approximately 10% discount.
Last verified: April 2026
What we like
- + HMRC-recognised for MTD ITSA (verify GOV.UK before committing)
- + Best-in-class invoicing and client management UI
- + Strong mobile app for capturing expenses
- + Good for service businesses billing multiple clients
- + Good for service businesses billing multiple clients
What we don't like
- − GOV.UK listing should be re-verified — do not rely on marketing materials alone
- − No free tier
- − Client limits on lower plans are restrictive
- − No dedicated landlord or CIS support
- − Less established in UK accounting than Xero/QuickBooks
Who it's best for
- ✓ Service-based sole traders who bill multiple clients
- ✓ Freelancers who prioritise a polished client-facing invoicing workflow
- ✓ Users migrating from invoice-only tools who also need MTD ITSA
Not ideal if
- ✗ Landlords (use Sage or FreeAgent)
- ✗ CIS subcontractors (use Sage)
- ✗ Budget-first sole traders (Zoho Books free plan is cheaper)