Free Making Tax Digital
software
The TaxMTD Starter plan is free forever for non-VAT sole traders. Keep MTD-ready digital records, sort your expenses into HMRC categories, and auto-fill your SA103 - without paying a penny.
Free MTD software, done honestly
"Free MTD software" means different things depending on who is selling it. Some tools are bridging-only - they push spreadsheet totals to HMRC but never give you real digital records. Others are free until you hit a low transaction cap, then ask for card details. TaxMTD takes a simpler line: the Starter plan is genuinely free, forever, for non-VAT sole traders, and it gives you proper digital books rather than a spreadsheet patch.
Making Tax Digital for Income Tax starts on 6 April 2026 for sole traders and landlords with qualifying income above £50,000, then reaches the £30,000 band in April 2027 and the £20,000 band in April 2028. Even if you are below the threshold today, getting your records digital now means there is nothing to scramble for when your band is mandated. The free plan is built for exactly that - a place to keep income and expenses in order, ready for the day you need to file.
When that day comes, upgrading is one step: Essential at £12/month (billed annually) unlocks quarterly MTD submissions to HMRC, VAT returns, and your SA103 final declaration. Read the full Making Tax Digital guide or jump straight to MTD for VAT.
What the free Starter plan gives you
Real digital records for non-VAT sole traders - not a bridging hack.
Free forever
The Starter plan stays free for non-VAT sole traders. No card, no 14-day clock, no surprise bill.
Digital records
Keep MTD-ready digital records of your income and expenses in one place instead of a spreadsheet.
HMRC categories
Organise every transaction into HMRC-compliant expense categories, ready for your Self Assessment.
SA103 auto-fill
Your self-employment figures flow straight into an auto-filled SA103 - included on every plan, free ones too.
No lock-in
Import a spreadsheet on day one and export your data whenever you like. Your books are always yours.
Upgrade only when ready
Move to Essential at £12/month when you need quarterly MTD submissions, VAT, or cross the VAT threshold.
Who the free plan suits
Start free today, upgrade the moment you actually need to file.
Non-VAT sole traders
You run a small trade below the VAT threshold and want tidy digital books without a monthly bill.
Side-hustlers
Freelance or gig income on the side? Keep it separate and MTD-ready before your income grows into a mandated band.
Getting ready for 2026
Below the threshold now but expecting to cross it? Put your records in place early so the switch to filing is effortless.
When you're ready to file: Essential, £12/month
The free plan gets your records MTD-ready. Essential (billed annually) adds everything you need to submit: quarterly MTD updates to HMRC's Making Tax Digital for Income Tax API, full 9-box VAT returns with standard and flat rate scheme support, and your SA103 final declaration. Your data carries straight over - nothing to rebuild.
Start free, upgrade when it pays off
Free Starter plan for non-VAT sole traders. Paid plans add HMRC submissions and a 14-day free trial.
Essential
Track money, file the basics
- Everything in Starter
- Open Banking (2 connections)
- SA103S (Short) self-assessment submission
- Mileage tracking & expense rules
- Dashboard & full transaction ledger
Pro
Most PopularRun a business properly
- Everything in Essential
- Invoicing, estimates & credit notes
- Full reports suite (P&L, cash flow, trial balance)
- Receipt capture & OCR (20/mo)
- SA103F (Full) self-assessment
- 5 bank connections, 3 team members
Business
Full compliance stack
- Everything in Pro
- CT600, VAT, CIS, Companies House
- Payroll, dividends & journal entries
- Inventory management (200 SKUs)
- AI Copilot & multi-currency
- Unlimited bank connections, 10 team members
Practice
Firm workflow
- Everything in Business — uncapped
- 25 entities included
- Accountant portal & API access
- White-label reports & bulk operations
- Unlimited team members & OCR
- Priority support
Starter
Free ForeverFree for non-VAT sole traders
- Free forever — no card required
- Open Banking (1 connection)
- 5 invoices per month
- MTD quarterly submissions
- Universal Credit calculator
- Receipt capture & basic P&L
Free MTD software FAQ
Get MTD-ready for free
Set up your free Starter plan in minutes. No card, no catch.