Free MTD Software: What's Really Free (and What's Not)
Is there genuinely free MTD software for Income Tax? What 'free' usually means, the catches to watch for, free trials and free tiers, and how to weigh free against the right fit for your business.
The short answer
Some MTD software is free or has a free tier, but 'free' usually comes with limits — bundled with a bank account, capped features, only quarterly updates (not the final declaration), or a free trial that later charges. Check it's on HMRC's compatible list, files everything you need, and fits your income types before choosing on price alone.
"Free MTD software" is a popular search — and a reasonable hope. There are free and freemium options, but "free" almost always has conditions. Here's how to tell genuine value from a false economy.
What "free" usually means
| "Free" model | The catch |
|---|---|
| Bundled with a bank account | Only free while you bank there |
| Free tier of a paid product | Feature or usage caps |
| Free trial | Becomes paid after a period |
| Free quarterly updates only | Charges for the final declaration |
| Free but ad-supported / upsell | Constant prompts to upgrade |
None of these are scams — but "free" and "free for what I need" aren't the same thing.
What to check before choosing on price
- Is it on HMRC's compatible list? Non-negotiable.
- Does it file the final declaration, or only the quarters?
- Does it cover your income types — self-employment, UK/foreign property, CIS?
- What are the caps — clients, submissions, features?
- How is your data stored and secured? And it must never ask for your Government Gateway password.
Free vs the right fit
A free tool that can't file your final declaration, or doesn't handle your property or CIS income, will cost you more in workarounds — or a scramble to switch mid-year — than a modest paid tool that just works. Weigh fit against price, not price alone.
A middle path: free where it matters most
Some paid tools make the expensive part free rather than the whole product. ThisQuarter's Solo plan is free for your first two quarterly submission cycles — long enough to complete real HMRC submissions before anything is charged — then £9/month. It's a secure desktop app with your data encrypted on your own device, handling quarterly updates, the final declaration and CIS. That's "free to get started and prove it works," rather than "free but limited forever."
Key takeaways
- Free MTD software exists, but usually with limits or conditions.
- Check HMRC compatibility, final-declaration filing, income types and caps.
- Don't choose on price alone — a poor fit costs more later.
- Look for tools that make getting started free while still doing the whole job.
This article is general information, not tax advice or a product endorsement. Check HMRC's compatible software list at gov.uk.
Frequently asked questions
Is there free MTD software for Income Tax?
There are free and freemium options, but 'free' usually has conditions — bundled with a business bank account, limited features, only quarterly updates, or a trial that becomes paid. Always check what's actually included before relying on it.
What's the catch with free MTD software?
Common catches are feature caps, no final-declaration filing, limits on income sources or number of clients, ads or upsells, or unclear data security. Free is fine if the limits don't affect you — check carefully.
Can accountants use free MTD software?
Free tools are usually aimed at single self-filers, not multi-client practices. Accountants generally need software built for the agent workflow, which is rarely the free option.
Is cheap or free software safe for my data?
It can be, but check how your data is stored and secured. Your income, National Insurance number and UTR are sensitive. Any tool — free or paid — should never ask for your Government Gateway password.
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