Software

Free MTD software for Income Tax: what's free, what isn't, and 9 options compared

Written and reviewed by the AATAX Editorial Team · Last reviewed 17 October 2026 against GOV.UK guidance and each provider's website · What changed: Comparison updated to 159 products and 37 with a free version, checked 17 October 2026

Last updated: 17 October 2026

Yes, there is free MTD software for Income Tax. On 17 October 2026, HMRC's software finder showed 37 products with a free version for sole traders and landlords, out of 159. HMRC doesn't make its own software, so you choose one of these. Free versions differ a lot, so check what each one lets you send to HMRC.

Disclosure: AATAX publishes this guide and is one of the products compared. We've used only what each provider's own website and HMRC's listings say, and we've noted where we couldn't confirm something.

Key facts

Does HMRC provide software?	No. You or your agent need commercial software that works with MTD for Income Tax
Free options listed by HMRC	37 of 159 products (checked 17 October 2026)
Does HMRC recommend any?	No. Listed software has passed HMRC's recognition process; HMRC doesn't recommend a product and shows results in random order
HMRC's own caveat	Free products may have limits, for example on the number of transactions
What the software must do	Keep digital records, send quarterly updates and submit your tax return
Can you use a spreadsheet?	Yes, with bridging software that connects your spreadsheet to HMRC

Does HMRC provide free MTD software?

No. HMRC's guidance on choosing software for MTD for Income Tax says you, or your agent, need commercial software that works with MTD for Income Tax. HMRC runs a software finder with a "Free version" filter. It says it doesn't recommend any product, isn't responsible for whether software meets your needs, and that free products "are available for those with simple tax affairs but there may be limits on how the product can be used".

What free MTD software has to do

Free or paid, HMRC says your software needs to let you:

create, store and correct digital records of your self-employment and property income and expenses
send quarterly updates to HMRC
add your other income and submit your tax return by 31 January after the tax year

It also needs to support all your MTD income sources (self-employment, UK property and foreign property, as relevant) and your update periods (standard, 6 April to 5 April, or calendar, 1 April to 31 March).

You can use more than one product, for example one for quarterly updates and another for your tax return. HMRC says you can only use one product for each separate submission, so a landlord can't split property quarterly updates across two products.

Not sure you need MTD yet? Read Do I need MTD for Income Tax?. This year's dates are in MTD deadlines 2026-27.

Two types of software

Software that creates digital records. You link your bank, upload or snap receipts, or type entries in. These usually handle quarterly updates and the tax return.
Bridging software. It connects records you already keep, such as a spreadsheet, to HMRC so you can send submissions.

Some products do both. If you're happy with your spreadsheet, free bridging software may be enough for quarterly updates, but check how you'll submit your tax return.

What free plans often leave out

Going by the products we checked:

Quarterly updates only. HMRC's finder shows a "Submission type" for each product. Some free products list quarterly updates only, so you'd need something else for your tax return.
Some income sources. Some cover sole traders only, some UK property only. Foreign property and the other income on a tax return (interest, dividends, pensions, capital gains) vary. HMRC listings mark each feature "Ready now", "In development" or "Not included".
Paid extras. Bank feeds, automatic categorisation beyond a limit, more properties, invoices.
Conditions. Free only with a particular business bank account, or for a limited period.
Charges for accountants. Some products are free for individuals but charge practices that file for clients.

Free MTD software for Income Tax compared

Checked 17 October 2026. Columns 2–3 are from each provider's own website. Columns 4–7 are from each product's HMRC finder listing. Providers change their offers, so check before you choose. This isn't a ranking and isn't every free option (alphabetical, AATAX listed separately).

Key: ✓ = "Ready now" on the HMRC listing · ✗ = "Not included" · QU = quarterly updates · TR = tax return. Columns 2–3 are from the provider's site; 4–7 from HMRC.

Free MTD for Income Tax software compared, checked 17 October 2026
Product	Free route (provider site)	Paid / limits (provider site)	Type (HMRC)	Submissions (HMRC finder)	Sole trader / UK prop / Foreign prop	Calendar periods
Aligned.tax MTD for Spreadsheets	Own quarterly updates "free, always", no card	Year-end submissions "coming soon"; practices pay per active client from 2027-28 (first 3 clients free)	Bridging	QU	✓ / ✓ / ✓	✓
Clear Books Free	"MTD Free" £0 forever for sole traders; no transaction limits	Bank connection on paid plans from £5/mo + VAT	Records	QU, TR	✓ / ✓ / ✓	✓
Coconut Free	Up to 2 years free via Zempler Bank (eligibility applies); or 14-day trial	Paid plans after the trial; trial details: see provider site	Records + bridging	QU, TR	✓ / ✓ / ✓	✓
Monzo	Built into Monzo Business, including the free Lite plan	Needs a Monzo Business account; no accruals basis, VAT or accountant collaboration (per Monzo)	Records	QU, TR	✓ / ✓ / ✗	✓
Pandle	Free plan includes "MTD Income Tax Submissions" and bank imports	Bank feeds and automation on Pro, £5/mo + VAT	Records + bridging	QU, TR	✓ / ✓ / ✗	✓
PaTMa Property Manager	£0/mo for 1 rental unit	Pro £15/mo for 5 units	Records	QU	✗ / ✓ / ✗	✓
Sage Sole Trader & Landlord Free	Free, no card or time limit, non-VAT-registered	25 auto-categorised transactions, 1 bank account, 5 invoices/mo	Records	QU, TR	✓ / ✓ / ✗	✓
Starling	Included free with the Starling sole trader account	End-of-year declarations "coming soon"; needs a Starling account	Records	QU	✓ / ✓ / ✗	✗
AATAX (us)	Free for individuals; no card needed to sign up	Accountants: from £99/yr ex VAT for up to 20 clients; 3 clients free for 12 months	Records + bridging	QU, TR	✓ / ✓ / ✓	✓

How we chose: products with a free version in HMRC's finder that come up often in searches for free MTD software, plus spreadsheet (bridging) and landlord-only options so each type is represented. If you're a provider and something has changed, email hello@aatax.ai and we'll re-check it.

Notes on each product

Aligned.tax MTD for Spreadsheets

Bridging software for people who keep records in Excel. Its site says filing your own quarterly updates is "free, always", with no card and no time limit, and lists year-end submissions as "coming soon". It says practices get their first three clients free, then pay per active client from the 2027-28 tax year. HMRC's finder lists quarterly updates as its submission type, with sole trader, UK property and foreign property as ready now (checked 1 November 2026).

Clear Books Free

Clear Books describes "MTD Free" as £0 "forever" for sole traders, with MTD for Income Tax quarterly updates, recording income and expenses, basic reports and no transaction limits. Connecting your bank to import transactions is on paid plans, which start at £5 a month plus VAT. HMRC's listing shows sole trader, UK property and foreign property as ready now.

Coconut Free

Coconut describes two routes: up to two years free with a Zempler Bank business account (subject to eligibility and terms), or a 14-day free trial. Its paid plans are listed separately. HMRC's listing shows sole trader, UK property and foreign property as ready now, with the other tax-return income items "in development". For what the trial includes, see Coconut's site.

Monzo

Monzo says MTD for Income Tax software is built into Monzo Business "as standard", including on its free Lite plan, for sole traders and landlords. It says you can send quarterly updates and your end-of-year return from the app. It says the tool doesn't support accruals-basis accounting, VAT or working with an accountant. You need a Monzo Business account (eligibility and terms apply). HMRC's listing shows sole trader and UK property; foreign property is not included.

Pandle

Pandle's pricing lists "MTD Income Tax Submissions" and bank imports on its free plan. Bank feeds and automation are on Pandle Pro (£5 a month plus VAT). HMRC's listing shows sole trader and UK property as ready now; foreign property is not included.

PaTMa Property Manager

Landlord software. Its free plan is £0 a month for one rental unit; Pro is £15 a month for five units. HMRC's listing shows UK property only and quarterly updates as the submission type.

Sage Sole Trader & Landlord Free

Sage describes Sage Sole Trader Free as free with no card or time limit, for non-VAT-registered sole traders. The free plan includes 25 auto-categorised transactions, one connected bank account and five sales invoices a month. HMRC's listing shows sole trader and UK property, with quarterly updates and tax return.

Starling

Starling says its MTD for Income Tax tools are included free with its sole trader account. You can send quarterly updates from the account, and "end-of-year declarations [are] coming soon". HMRC's listing shows sole trader and UK property; foreign property and calendar update periods are not included. Its Accounting Plus upgrade (£7 a month until April 2027, then £14) is mainly for VAT returns.

AATAX (us)

AATAX is HMRC-recognised (reference D6Q7XM). AATAX for sole traders and landlords is free, and you don't need a card to sign up. You upload bank statements, receipts or spreadsheets (CSV or Excel), check the records AATAX reads, then send your quarterly updates and tax return yourself. Letting agent statements are recorded with the full rent as income and the agent's fees as costs, which is how HMRC asks landlords who only know the net figure to record them. HMRC's listing shows sole trader, UK property and foreign property, standard and calendar periods, and the other tax-return income items as ready now. Accountants pay from £99 a year ex VAT for up to 20 clients, with larger packages for up to 50 and 200 clients, unlimited users, VAT returns as a 25% add-on, and up to 3 clients free for 12 months.

Free MTD software for landlords

If your income is from property, check that the software supports UK property, and foreign property if you let abroad. HMRC's finder shows UK property as ready now for all nine products compared here. Foreign property is ready now for AATAX, Aligned.tax, Clear Books and Coconut, and not included for Monzo, Pandle, PaTMa, Sage and Starling (checked 1 November 2026). PaTMa's free plan covers one rental unit. For how the rules work for rent, joint property and letting agents, see our guide to MTD for landlords.

How to choose free MTD software: 5 checks

List your income sources: self-employment, UK property, foreign property, and anything else on your tax return.
Filter HMRC's finder by "Free version" and open each listing. Check that every source you have is "Ready now".
Check the submission type: quarterly updates and tax return, or plan which product does each.
Read the provider's pricing page for trials, time limits, bank-account conditions, transaction or property limits, and paid features.
Match it to how you keep records now. Spreadsheet: consider bridging software. Paper receipts and PDF statements: look for software that reads them.

Landlords should also check how the software handles letting agent statements and jointly owned property. See MTD for landlords. Deadline close? See the 7 November deadline guide.

Frequently asked questions

Is there free MTD software for Income Tax?

Yes. On 17 October 2026, HMRC's software finder listed 37 recognised products with a free version for sole traders and landlords. Check each one supports your income sources and lets you send both quarterly updates and your tax return.

Does HMRC provide free MTD software?

No. HMRC says you need commercial software that works with MTD for Income Tax. It lists recognised products in its software finder but doesn't recommend any.

Is there free MTD software for landlords?

Yes. Several free products in HMRC's finder support UK property, and some support foreign property. Check each listing for the property income you have, and look for limits such as the number of properties.

Can I use a spreadsheet with free MTD software?

Yes. HMRC says bridging software can connect to spreadsheet records and make your submissions. Some bridging products are free for individuals; check whether they also send your tax return.

What do free MTD plans usually leave out?

Among the products we checked: tax return submission (quarterly updates only), some income sources, bank feeds, more than one property, or free access tied to a bank account or trial. HMRC notes free products may have limits, such as on the number of transactions.

Is AATAX really free for sole traders and landlords?

Yes. The individual app is free and you don't need a card to sign up. You keep your records and send your quarterly updates and tax return yourself.

Sources (checked 17 October 2026)

GOV.UK: Choose the right software for MTD for Income Tax · HMRC software finder · Create digital records · Send quarterly updates

Provider pages and HMRC listings: AATAX (listing) · Aligned.tax (site, listing) · Clear Books (site, listing) · Coconut (site, listing) · Monzo (site, listing) · Pandle (site, listing) · PaTMa (site, listing) · Sage (site, listing) · Starling (site, listing)

General guidance, not tax advice. Product details change; check the provider before you choose.