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Best free accounting software UK (2026)

There is genuinely free UK accounting software — the trick is knowing each option's real limits before you commit. Here's an honest look at the free tiers worth considering in 2026 for sole traders and small businesses, what they actually include, MTD readiness, and who each suits. Educational only — not financial or tax advice. Free tiers change and get restricted, so verify current terms and eligibility on each provider's site (checked 20 July 2026).

Affiliate disclosure

The “Try Zoho Books” link on this page is an affiliate link (rel="sponsored") — if you sign up through it, CashPilot may earn a commission at no extra cost to you, and it doesn't change our ranking or what we say. Every other product below is a plain, unpaid link. We feature Zoho because its free tier genuinely earns a place here. Full affiliate disclosure.

1. Zoho Books — best free all-rounder (MTD-capable)

Zoho Books offers a real free tier that is HMRC-recognised for Making Tax Digital, including quarterly updates and end-of-year submission — rare for a no-cost plan. It has a short learning curve and plugs into the wider Zoho suite. Eligibility for the free plan can depend on your revenue, so confirm you qualify. Our full Zoho Books UK review goes deeper on the limits (UK payroll depth, accountant familiarity).

Try Zoho Books (affiliate link)

2. FreeAgent — free if you bank with the right bank

FreeAgent is the full product, free indefinitely, if you hold an eligible NatWest, Royal Bank of Scotland, Ulster Bank or Mettle account — not a trial, the whole thing. For sole traders who already bank there (or would), it's one of the best-value UK options going, with strong UK-native tax and MTD support. If you don't bank there, it becomes a paid subscription. See our FreeAgent + NatWest free-banking review for the eligibility catch. (We have no affiliate relationship with FreeAgent.)

3. Crunch — basic free tier + UK community

Crunch's free software tier is basic but practical for a sole trader keeping simple books, and it comes with Crunch Chorus, a UK-focused resource and community hub. Crunch markets itself as MTD-ready with stated intent to support MTD for Income Tax — confirm the current free-plan feature set before relying on it for submission. Crunch's site.

4. Pandle — free UK-built bookkeeping

Pandle is a UK-built option with a free tier aimed at start-ups, new sole traders and small side businesses doing straightforward bookkeeping. Good for keeping clean records cheaply; check whether the free plan covers the MTD submission you need. Pandle's site.

How to choose a free tier (without regretting it)

  • Ask the one question that matters: what specific limit will make me upgrade, and how far am I from it?
  • Confirm MTD submission is included if you're (or soon will be) mandated — check if MTD applies to you.
  • Check the export/cancellation path so you're not locked in if you outgrow it.
  • Weigh free vs paid honestly — sometimes a cheap paid tier beats a limiting free one (see our free vs paid guide).

FAQ

Is there genuinely free accounting software in the UK?
Yes. Zoho Books, Crunch and Pandle all offer real free tiers (with limits), and FreeAgent is free indefinitely if you bank with NatWest, RBS, Ulster Bank or Mettle. 'Free' always comes with caps or conditions, so check the current terms for your situation.
Is free accounting software MTD-compatible?
Some of it is. Zoho Books' free tier is HMRC-recognised for Making Tax Digital, and Crunch and FreeAgent are MTD-ready. Always confirm the specific free plan supports MTD submission before relying on it — free tiers sometimes exclude submission.
What's the catch with free accounting software?
The catch is the limit that eventually makes you upgrade — a cap on invoices, users, bank feeds, revenue, or the MTD submission itself. Free is a smart start if that cap is above where you actually are; it's a problem if you hit it mid-tax-season.
Which free option is best for a UK sole trader?
If you bank with NatWest/RBS/Ulster/Mettle, FreeAgent free is hard to beat. Otherwise Zoho Books' free tier is a strong, MTD-capable all-rounder, with Crunch and Pandle worth a look for basic bookkeeping. Pick by your bank, your volume and whether you need MTD submission included.

Educational only — not financial, tax, or accounting advice. Only the Zoho Books link is an affiliate link (rel="sponsored"); all other links are plain and unpaid. Free tiers, limits and MTD support change — verify current terms on each provider's official site. Checked 20 July 2026.