Best Free Making Tax Digital Software 2026

Searching for free MTD software and finding that "free" usually means "free trial" or "free for VAT only"? Here's what's genuinely available for Making Tax Digital for Income Tax without paying.

The problem with "free"

Many tools advertise as free but come with caveats:

• Free trial — free for 30 days, then £10-35/month
• Free for VAT only — MTD for VAT is supported, but Income Tax requires a paid plan
• Free with a bank account — FreeAgent is free if you bank with NatWest/RBS/Ulster, but that means switching banks
• Free tier with limits — free up to a certain number of transactions, then paid

Genuinely free options for MTD Income Tax

As of 2026, the options for truly free MTD for Income Tax software are limited. Most providers are charging because the market is new and demand is high.

Flonancial

• Cost: Free
• Type: Bridging software
• How it works: Upload your spreadsheet, pick your figures, submit to HMRC
• Best for: Sole traders and landlords who already use spreadsheets
• Limitations: Quarterly updates only (Final Declaration via HMRC's own service). No bookkeeping, invoicing, or bank feeds.

HMRC's own software

HMRC is developing its own free service for MTD submissions. However, as of early 2026, it's limited in scope and may not cover all business types. Check gov.uk for the latest availability.

When free isn't enough

Free bridging software is perfect if:

• You keep your own records in a spreadsheet
• Your finances are straightforward
• You just need to submit quarterly figures

Consider paid software if you need invoicing, automatic bank categorisation, payroll, or your accountant requires a specific platform.

The bottom line

MTD is a government requirement, not a choice. If you have simple finances and already keep a spreadsheet, there's no reason to pay for it. Flonancial is built specifically for this — free, simple, and focused on getting your numbers to HMRC without the overhead of full accounting software.