Free MTD software for Income Tax: what really exists

Start at the source: HMRC's recognised list

The only tools that can actually file your MTD updates are on HMRC's recognised-software list on GOV.UK. It lets you filter by features — including free options — and by whether the tool suits sole traders or landlords. If a product is not on that list, it cannot submit to HMRC, no matter how it is advertised. So the recognised list, not an ad, is where a free-software search should begin.

What "free" usually means

• Free tier — a limited version (e.g. a cap on transactions, one income source, or no bank feeds).
• Free for a year — an introductory price that becomes a paid subscription later.
• Free for simple affairs — genuinely free if your business is small and straightforward.
• Free to file, paid to organise — some bridging tools are cheap or free but assume you keep your own records.

None of these are traps — they are just conditions. The mistake is assuming "free" means "free, full-featured, forever" and getting caught out at the first deadline.

Free vs cheap-paid: how to choose honestly

A £0 tool that doesn't fit your business can cost more in wasted hours than a £5/month one that does. Judge on fit, not price alone: how many income sources you have, whether you need bank feeds, and whether you want support when a deadline looms. For the paid side of the market, see our cheapest MTD software roundup and best free accounting software (2026) — and if you'd rather keep your spreadsheet, our bridging-software guide.

Before you pick anything

Confirm you're actually mandated and from when — plenty of people shop for software a year early. Our does MTD apply to me? guide and deadline checker answer that from one number, and the MTD checklist covers the whole set-up.

FAQ

Is there free MTD software for Income Tax?

There are recognised tools that offer a free or free-tier option, and HMRC lists recognised software (including some free options) on GOV.UK. But 'free' usually means a limited tier, an introductory price, or free for very simple affairs — genuinely no-cost-forever, full-service tools are rare. Always check the current terms on the provider's site and HMRC's list.

Where is the official list of MTD software?

HMRC maintains the recognised-software list on GOV.UK ('Find software that's compatible with Making Tax Digital for Income Tax'). It lets you filter by features, including free options. That list is the source of truth for what can actually file — a tool not on it cannot submit your MTD updates, whatever its marketing says.

What's the catch with a free tier?

Common limits are: a cap on transactions or invoices, no bank feeds, one income source only, no support, or 'free' only for the first year. None of these make the tool bad — they just mean 'free' has conditions. Match the limits to how your business actually runs before choosing.

Does free software make me MTD compliant?

Compliance comes from keeping digital records and filing quarterly updates plus a final declaration through HMRC-recognised software — free or paid. The price tag is irrelevant to compliance; being on HMRC's recognised list and filing on time is what matters.

Can I keep my spreadsheet instead of paying for software?

Yes, if you add bridging software that digitally links your spreadsheet to HMRC — some bridging tools are low-cost or have a free tier. See our bridging-software guide for how that works.