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.
1. 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
- Best for: Landlords with UK property income, foreign property income, and self-employment income, including Buy-to-Let, HMOs, and commercial properties.
- Cost: Free for everyone until March 2026. Free for single property landlords until March 2028. Offer applies to the MTD and accounting module only.
- Accreditation: Full HMRC recognition for all MTD components: UK Property Income, Foreign Property Income, and Self-Employment. 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 trial version available.
Key Features for MTD
- Digital Record Keeping: Automatically 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, with bank reconciliation 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 automated categorisation to meet MTD record-keeping requirements.
- Automated Data Entry: Bank transaction matching and automated accounting to reduce manual data entry errors and maintain accurate digital records required for MTD compliance across all income types.
2. 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
- Best For: Sole traders and landlords
- Data Security Accreditation: GDPR compliant with bank-level security standards
- Mobile App: Available for iOS and Android
- Income Types Supported: Self-employment income, UK property income, foreign property income
Key Features for MTD
- MTD for Income Tax Ready: Built specifically for MTD requirements with quarterly updates and year-end submissions
- Real-time Bank Integration: Connect over 25 different bank accounts via Open Banking for automatic transaction imports
- Digital Record-Keeping: Secure cloud storage for all business paperwork with photo receipt capture
- Automatic Transaction Categorisation: Smart categorisation with guidance on allowable business expenses
- Quarterly MTD Submissions: Submit required quarterly updates directly to HMRC through MTD API
- Real-time Tax Calculations: Live tax estimates showing how much to set aside throughout the year
3. 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
- Best For: Sole traders, small businesses, 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, UK property income
Key Features for MTD
- 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 for MTD compliance requirements
- Quarterly Update Submissions: Submit required quarterly MTD updates directly to HMRC
- Basic Tax Return Support: Fundamental tax return preparation capabilities 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
4. 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
- Best For: Small businesses, sole traders, 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, UK property income
Key Features for MTD
- Complete MTD for Income Tax Support: Submit quarterly submissions and final declarations directly to HMRC
- MTD VAT Compliance: HMRC-recognised VAT return submissions with direct filing capability
- Open Banking Integration: Sync with most UK banks for real-time transaction imports and reconciliation
- AI-Powered Smart Capture: Automatic data extraction and transaction categorisation from receipts
- Real-time Tax Timeline: Track what tax you owe and when it’s due with automatic calculations
- Integrated Payroll Management: Complete payroll processing with RTI submissions and pension contributions
5. 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
- Best For: Landlords, small property investors, 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
- Free Property MTD Compliance: Digital record-keeping that automatically prepares 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: Generate property tax return reports instantly from existing records
- Integrated Property Management: Handle tenancy details, maintenance tracking, and financial records in one platform
6. 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
- Best For: Sole traders, small businesses, freelancers, 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, UK property income
Key Features for MTD
- MTD ITSA Pilot Participation: Official participation in HMRC’s MTD for Income Tax pilot scheme from April 2025
- Free Quarterly Submissions: Submit cumulative quarterly updates to HMRC
- Final Declaration Support: Complete end-of-year submissions, including additional income sources
- Digital Record Maintenance: MTD-compliant digital record-keeping with automatic categorisation
- Multi-Income Source Management: Handle both self-employment and property income
- Bank Integration: Connect bank accounts for automatic transaction imports and reconciliation
7. 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
- 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, foreign property income
Key Features for MTD
- Free HMRC-Recognised MTD Compliance: Fully compliant software for Making Tax Digital for Income Tax
- No-Installation Browser Access: Full MTD functionality through a web browser
- Guided Submission Process: Expert-guided workflows that simplify compliance
- Free Multi-Income Source Support: Handle both self-employment and property income submissions
- Expert Development Heritage: Built by the team behind MTD for VAT
- Comprehensive Transaction Management: View and download all income and expense transactions
| Software Name | Type of Software | Submission Type | Best For | Income Types Supported |
|---|---|---|---|---|
| RentalBux | Software that creates digital records, supports quarterly updates and final declaration for UK property income | Quarterly updates, Tax return | UK property landlords | UK property income |
| @Coconut | Software that creates digital records, software that connects to your records (bridging software) | Quarterly updates, Tax return | Self-employed, landlords | Self-employment income, UK property income, Foreign property income |
| Clear Books Free | Software that creates digital records | Quarterly updates, Tax return | Sole traders, small businesses | Self-employment income, UK property income |
| FreeAgent | Software that creates digital records | Quarterly updates, Tax return | Self-employed, small enterprises with eligible bank accounts | Self-employment income, UK property income |
| PaTMa Property Manager | Software that creates digital records | Quarterly updates | Landlords, property investors | UK property income |
| QuickFile Accounting Software for MTD IT | Software that creates digital records | Quarterly updates, Tax return | Self-employed, small businesses | Self-employment income, UK property income |
| Self Assessment Direct | Software that creates digital records, software that connects to your records (bridging software) | Quarterly updates, Tax return | Self-employed, landlords | Self-employment income, UK property income, Foreign property income |
| TaxNav | Software that creates digital records, software that connects to your records (bridging software) | Quarterly updates, Tax return | Self-employed, landlords | Self-employment income, UK property income, Foreign property income |
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.