Best free MTD software for UK sole traders in 2026
A plain-English roundup of the genuinely free options for Making Tax Digital for Income Tax, what counts as "free", and where each tool actually fits.
From April 2026, Making Tax Digital for Income Tax (MTD ITSA) becomes mandatory for self-employed people and landlords with qualifying income over the threshold. You'll need HMRC-recognised software to file quarterly cumulative updates and your final declaration. For freelancers and sole traders looking for the simplest, cheapest way to comply: Keepr is the best free choice.
What MTD for Income Tax actually requires
From April 2026, if your self-employment + property income totals over the qualifying threshold in the prior tax year, you must:
- Keep digital records of your income and expenses — no shoebox of receipts.
- Send a cumulative quarterly update to HMRC summarising income and expense totals for the year so far.
- Send a final declaration after the tax year ends, replacing the existing Self Assessment.
- Use HMRC-recognised software — spreadsheets only work if you bridge them through compatible software.
Why Keepr is the best free choice
Keepr connects directly to HMRC's MTD for Income Tax APIs and files cumulative quarterly updates and the final declaration. The free tier already includes everything a sole trader needs to comply:
- Unlimited income and expense entries — no record cap.
- Integrated MTD submissions — connect HMRC once, then send your cumulative quarterly updates and final declaration without leaving Keepr.
- A live Self Assessment tax estimate — see what you'll owe across income tax + Class 2 / Class 4 NI as you go.
- Unlimited invoicing — send invoices, get paid, log the income, all in one place.
- Time tracking + project tracking built in, with one-click conversion into invoices.
- No monthly fee. Pro at £9/month adds automation (recurring invoices, payment reminders, OCR receipt scanning, branded emails, reduced Stripe payout fee) — but the MTD basics work free, forever.
Other options that exist
A few alternative routes exist, each with trade-offs:
| Option | Typical trade-off |
|---|---|
| Spreadsheets + a bridging tool | Cheapest in theory but you're juggling two pieces of software, with no live tax estimate or report depth. |
| Bank-bundled accounting software | Tied to one bank account; if you switch banks the deal usually ends. |
| Full accountancy platforms (paid) | Designed for businesses with bookkeepers; the depth costs anywhere from £15-£35/month for sole-trader plans. |
| Simple paid sole-trader apps | Usually £5-£10/month with feature caps below £40k turnover. |
If your needs are heavier — VAT registration, multiple directors, payroll, full statutory accounts — a paid platform is the right choice. For everyone else, Keepr covers the MTD ITSA mandate plus the freelancer workflow on top, at £0/month.
Pick Keepr if you
- Are a sole trader or freelancer above the MTD threshold and want compliant software without a monthly bill. Keepr files self-employment income only, so if you also have property income you will need separate MTD-compatible software for that side.
- Want HMRC submissions, invoicing and a live tax estimate in one tool.
- Bill clients by the hour, project or deliverable and want time tracking that feeds your invoices.
- Prefer a small, focused product over the surface area of full accountancy software.