Free MTD software: the real options and the small print
There is no free HMRC filing tool for MTD — but genuinely free options exist. Here's the honest map, including the limits nobody prints in large type.
Where "free" actually comes from
- Free tiers of commercial products. HMRC expects the market to offer free software for the simplest cases, so several vendors have a free plan — typically one business, low income, no year-end final declaration, no support.
- Free bridging tools. File quarterly updates straight from a spreadsheet. Free tiers usually cap submissions or businesses, and charge for the final declaration.
- Free with your bank. Some business bank accounts bundle full accounting software (e.g. FreeAgent with certain accounts) — genuinely free if you already bank there.
- Free trials. Not free software — just deferred billing. Fine for testing, not a strategy.
The authoritative list is HMRC's "find software" page on GOV.UK, which can be filtered to free products — check it close to your start date, because the list is growing every quarter.
What free plans commonly leave out
- The final declaration — you file four free updates, then pay to finish the year.
- A second business — sole trade + rental property often breaks the free tier.
- Support — when a submission fails on deadline day, you're on your own.
- Your time — the real cost. Free tools optimise for "technically compliant", not "done in five minutes".
Our honest take
If your affairs are truly simple and you enjoy this stuff, free bridging plus a tidy spreadsheet is legitimate and we'd rather you did that than overpay for a suite you won't use. If you'd pay a small amount for the whole year to take minutes instead — that's the product NippyTax is being built to be. Tell us what "a small amount" means to you on the waitlist below; the answers literally set our pricing.
Frequently asked questions
Is there free software for MTD for Income Tax?
Yes, a small amount — HMRC’s recognised-software list on GOV.UK can be filtered to free products, and some paid suites have free tiers or come free with certain business bank accounts. Free almost always means limits: one business, income caps, bridging-only, or ads/upsells.
Does HMRC provide its own free MTD software?
No. Unlike the old Self Assessment website, HMRC does not offer its own filing tool for MTD for Income Tax — you must use commercial software, though HMRC requires that some free options exist in the market for the simplest cases.
Can I file MTD updates for free from a spreadsheet?
Some bridging tools have free tiers that will file quarterly updates from a spreadsheet. Check what’s excluded — the final declaration is often the paid bit. See spreadsheets and MTD.
Is free MTD software good enough?
For a single simple business, it can be. The trade-offs are usually support (little to none), the year-end final declaration (often excluded), and time — free tools tend to make you do more of the work. Decide what an hour of your January is worth.
Get NippyTax when it launches
We are building the simplest possible way to do MTD quarterly updates — no accounting suite, no jargon. Join the waitlist and be first in when it launches.