The introduction of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) has made tax submission more complex and expensive than ever. What once cost just a few hundred pounds can now easily run into thousands when you factor in ongoing software subscriptions, accountant fees, and digital record-keeping requirements.
But here's the good news: several HMRC-recognised MTD software solutions provide everything you need for free. In this blog post, you will get a detailed breakdown of each of the free HMRC-recognised MTD software. Plus, we've included a summary table at the end to help you quickly compare the software and choose the best fit. Sounds fair! Let's start with the first software.
RentalBux
RentalBux is an all-in-one platform that helps landlords manage properties, tenants, finances, and tax compliance. It is now fully HMRC recognised for all MTD components: UK property income, foreign property income, and self-employment. RentalBux stands out with complete MTD approval across all income types.
Key Details
Feature | Details |
|---|---|
Best For | Self-employed individuals and landlords with UK, and foreign property income, including Buy-to-Let, HMOs, and commercial properties |
Cost | Free for all users until March 2026. Single property landlords and self-employed individuals operating as a single business remain free forever with few limitations |
Accreditation | Full HMRC recognition for all MTD components: UK Property Income, Foreign Property Income, and Self-Employment income. Utilises secure data centres with enterprise-level Microsoft operating systems, the latest anti-virus protection, and Cisco Systems remote access security |
Trial / Freemium Availability | Free |
Key Features for MTD
Feature | Details |
|---|---|
Digital Record Keeping | Maintain digital records of rental income, foreign property income, self-employment income, and expenses as required by MTD regulations |
Bank Integration & Feeds | Link bank accounts and sync transactions for real-time financial data capture to ensure accurate digital records |
Automated Financial Reporting | Generate MTD-ready reports with just a few clicks for quarterly submissions and Final Declarations |
Income & Expense Tracking | Real-time tracking of all income streams: UK property, foreign property, and self-employment, and related expenses with swift categorisation to meet MTD record-keeping requirements |
Invoicing & Document Management | Create and manage invoices and bills with comprehensive document management features for organizing all property and business-related documents |
What Makes RentalBux Stand Out
Features | Details |
|---|---|
Self-Assessment Integration | Most self-employed and property business accounts are pre-mapped to HMRC Self-Assessment boxes, so no configuration is needed. Enter your transactions throughout the year, and your tax return boxes auto-populate from your final figures. If you need custom accounts for your specific business, you can drag and drop to map them to the right SA boxes |
All-in-One Compliance Platform | Complete solution handling everything from property management and bookkeeping to MTD compliance, eliminating the need for multiple software systems |
Coconut
Coconut is an invoicing and expense management platform that also provides features for MTD compliance. It solves the problem of expensive accounting software by providing essential MTD functionality for free to accountants with a simple mobile-first approach. It stands out for its focus on real-time financial tracking, automatic bank integration, and intelligent transaction categorisation that puts professional-grade accounting in everyone's pocket.
Key Details
Feature | Details |
|---|---|
Best For | Sole traders and landlords with UK and foreign property income |
Cost | Free version available, Paid plans from £9.95 per month |
Data Security Accreditation | GDPR compliant with bank-level security |
Trial/Freemium Availability | 30-day free trial available, plus free version for qualifying Zempler bank account holders |
Mobile App | Yes, native mobile app available |
Key Features for MTD
Feature | Details |
|---|---|
MTD-Ready Submissions | Supports quarterly updates and year-end submissions |
Real-time Bank Integration | Connects with 25+ bank accounts and credit cards via Open Banking |
Automatic Categorisation | Automatically categorises transactions with automated guidance for allowable expenses |
Digital Record-Keeping | Captures photo receipts and secures cloud storage for all business paperwork |
Tax Estimation | Calculates tax in real-time, showing how much to set aside throughout the year |
Accountant Portal | Offers a dedicated portal for real-time data sharing with accountants |
Clear Books Free
The Best Free HMRC-Approved MTD Software in 2025. Clear Books Free is the no-cost version of Clear Books accounting software. This software is particularly designed for small sole traders and property businesses that need basic digital record-keeping and tax-filing capabilities without ongoing costs. It stands out for its provision of genuine compliance features without feature restrictions or time limits. It provides all the core MTD functionality as paid alternatives for free while still maintaining professional standards and HMRC recognition.
Key Details
Feature | Details |
|---|---|
Best For | Sole traders, small businesses, and budget-conscious property investors |
Data Security Accreditation | Accredited by The Institute of Certified Bookkeepers and registered with the Financial Conduct Authority |
Mobile App | Limited mobile access compared to the paid version |
Income Types Supported | Self-employment income and UK property income |
Key Features for MTD
Feature | Details |
|---|---|
Free MTD Compliance | Complete MTD for Income Tax and VAT compliance at no cost, with no time restrictions |
Digital Record Creation | Essential digital record-keeping capabilities to meet MTD compliance requirements |
Quarterly Update Submissions | Submits required quarterly MTD updates directly to HMRC |
Basic Tax Return Support | Fundamental tax return preparation features for year-end compliance |
Bank Feed Integration | Essential bank connectivity for automatic transaction imports |
Compliance Reporting | Basic financial reporting tools to support MTD submission requirements |
FreeAgent
FreeAgent is a cloud-based accounting software particularly designed for small businesses. It offers free access to its comprehensive accounting software for small businesses, sole traders, and freelancers who bank with participating institutions like NatWest, Royal Bank of England, Ulster Bank, or Mettle.
Key Details
Feature | Details |
|---|---|
Best For | Small businesses, sole traders, and freelancers with eligible bank accounts |
Data Security Accreditation | Bank-level security with Open Banking compliance and GDPR standards |
Mobile App | Available for iOS and Android |
Income Types Supported | Self-employment income and UK property income |
Key Features for MTD
Feature | Details |
|---|---|
Complete MTD for Income Tax Support | Submits quarterly updates and final declarations directly to HMRC |
MTD VAT Compliance | HMRC-recognised VAT return submissions with direct filing capability |
Open Banking Integration | Syncs with most UK banks for real-time transaction imports and reconciliation |
AI-Powered Smart Capture | Automatically extracts data and categorises transactions from receipts |
Real-time Tax Timeline | Tracks what tax you owe and when it’s due with automatic calculations |
Integrated Payroll Management | Complete payroll processing with RTI submissions and pension contributions |
PaTMa Property Manager
The Best Free HMRC-Approved MTD Software in 2025. PaTMa Property Manager is a UK landlord-focused property management software that combines management, accounting, and MTD compliance all in one place. It provides UK landlords with specialised features like tenancy tracking, compliance reminders, and property-specific accounting. It offers a completely free plan for managing one property.
Key Details
Feature | Details |
|---|---|
Best For | Landlords, small property investors, and first-time property managers |
Data Security Accreditation | Open Banking integration with secure cloud-based storage |
Mobile App | Not specified |
Income Types Supported | UK property income |
Key Features for MTD
Feature | Details |
|---|---|
Free Property MTD Compliance | Digital record-keeping that automatically prepares data for MTD submissions |
Open Banking Integration | Direct bank connection for automatic property transaction syncing |
Simplified Property Bookkeeping | No double-entry required; simply record property income and expenses |
Compliance Automation | Step-by-step guides and automated reminders for property compliance requirements |
One-Click Tax Reporting | Generates property tax return reports instantly from existing records |
Integrated Property Management | Manages tenancy details, maintenance tracking, and financial records in one platform |
QuickFile Accounting Software for MTD IT
The Best Free HMRC-Approved MTD Software in 2025. QuickFile provides a fully-featured MTD Income Tax solution for free to self-employed individuals, landlords and businesses with up to 1000 ledger entries. It supports everything from digital record keeping and quarterly submission to year-end accounting adjustments and final declaration.
Key Details
Feature | Details |
|---|---|
Best For | Sole traders, small businesses, freelancers, and budget-conscious entrepreneurs |
Data Security Accreditation | Bank-level security with SSL encryption and secure data centres |
Mobile App | Available for iOS and Android |
Income Types Supported | Self-employment income and UK property income |
Key Features for MTD
Feature | Details |
|---|---|
MTD ITSA Pilot Participation | Official participation in HMRC’s MTD for Income Tax pilot scheme from April 2025 |
Free Quarterly Submissions | Submits cumulative quarterly updates to HMRC |
Final Declaration Support | Completes end-of-year submissions, including additional income sources |
Digital Record Maintenance | Maintains MTD-compliant digital records with automatic categorisation |
Multi-Income Source Management | Handles both self-employment and property income |
Bank Integration | Connects bank accounts for automatic transaction |
TaxNav
The Best Free HMRC-Approved MTD Software in 2025. TaxNav was developed by the team that created VAT. It provides a simple, browser-based operation platform without requiring users to install software, undergo training, or pay subscription fees. It also offers a guided submission process, making it ideal for non-accountants.
Key Details
Feature | Details |
|---|---|
Best For | Self-employed individuals, landlords, and tax agents |
Data Security Accreditation | HMRC-recognised with secure data protection and privacy controls |
Mobile App | Browser-based, accessible on any device |
Income Types Supported | Self-employment income, UK property income, and foreign property income |
Key Features for MTD
Feature | Details |
|---|---|
Free HMRC-Recognised MTD Compliance | Fully compliant software for Making Tax Digital for Income Tax |
No-Installation Browser Access | Full MTD functionality available directly through a web browser |
Guided Submission Process | Expert-guided workflows designed to simplify MTD compliance |
Free Multi-Income Source Support | Handles both self-employment and property income submissions |
Expert Development Heritage | Developed by the team behind MTD for VAT |
Transaction Management | Allows users to view and download all income and expense transactions |
Free HMRC-Approved MTD Compatible Software Summary Table
Software Name | Price | Type of Software | Submission Type | Income Sources / Best For |
|---|---|---|---|---|
RentalBux | Free Version | Software that creates digital records, Software that connects to your records (bridging software) | Quarterly updates | Sole trader, UK property, Foreign property |
@Coconut | Free Version | Software that creates digital records, Software that connects to your records (bridging software) | Quarterly updates, Tax return | Sole trader, UK property, Foreign property |
Clear Books Free | Free Version | Software that creates digital records | Quarterly updates, Tax return | Sole trader, UK property |
FreeAgent | Free Version | Software that creates digital records | Quarterly updates, Tax return | Sole trader, UK property |
PaTMa Property Manager | Free Version | Software that creates digital records | Quarterly updates | UK property |
QuickFile Accounting Software for MTD IT | Free Version | Software that creates digital records | Quarterly updates, Tax return | Sole trader, UK property |
Self Assessment Direct | Free Version | Software that creates digital records, Software that connects to your records (bridging software) | Quarterly updates, Tax return | Sole trader, UK property, Foreign property |
TaxNav | Free Version | Software that creates digital records, Software that connects to your records (bridging software) | Quarterly updates, Tax return | Sole trader, UK property, Foreign property |
Conclusion
There's no doubt that MTD compliance can be expensive, but you can cut costs significantly by using free and reliable software solutions. HMRC has published a list of recognised tools that are completely free to use. We've reviewed them all and compiled the key details, supported income types, and MTD-specific features to help you choose the one that best fits your needs.
Remember, the MTD deadlines are approaching fast, and now is the best time to get started. So, pick your software, set up your digital records and save yourself both money and last-minute stress when compliance becomes mandatory.