FreeAgent is UK-built accounting software owned by NatWest Group, designed around the sole trader’s tax year. The single most important thing to know about it: your VAT returns, Self Assessment and Making Tax Digital quarterly updates are filed directly to HMRC from inside the app — no bridging software, no separate filing step.
This review is written for UK freelancers and sole traders. Prices below are FreeAgent’s UK list prices excluding 20% VAT, checked against freeagent.com in October 2026. New customers currently get 50% off for the first six months on monthly billing (or the whole first year if you pay annually) — budget from the full rate, because the discount always ends.
How much does FreeAgent cost?
| Plan | Price | The short version |
|---|---|---|
| Sole trader | £19/month or £190/year | Everything a freelancer needs: invoicing, MTD VAT filing, Self Assessment filed to HMRC, MTD for Income Tax |
| Partnership & LLP | £27/month or £270/year | Sole trader features plus profit share calculation |
| Limited company | £33/month or £330/year | Adds Corporation Tax forecasting, dividends and Final Accounts filing |
| Landlord | £10/month or £100/year | Rental income and expenses, property tax reports |
| Free (bank route) | £0 | The full product free with a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or a Mettle account with at least one transaction a month |
All prices exclude 20% VAT, so the sole trader plan actually costs £22.80 a month out of your pocket. Two add-ons sit outside the headline price: unlimited Smart Capture (receipt/bill data extraction — the standard plan includes 10 files a month) is £5/month + VAT, and an Amazon UK Marketplace connection is £6/month + VAT. There is a 30-day free trial for everyone.
Who is FreeAgent for?
- Sole traders who want one tool from invoice to tax return. The Tax Timeline shows what you owe HMRC and when, in real time, through the year.
- VAT-registered businesses — MTD-compatible VAT returns are generated and filed directly to HMRC.
- Anyone with an eligible NatWest Group or Mettle business account — getting the full product free is hard to beat on value.
- Freelancers who bill by the hour — time tracking and project profitability views are built in, not bolted on.
Who should skip it: if all you need is invoicing and an accountant handles the rest, free tools cover that. If your clients pay you in several currencies, the global platforms have deeper multi-currency support.
What are the cheaper or free alternatives?
- QuickBooks Sole Trader Plus (£10/month + VAT) — cheaper for non-VAT sole traders, and it prepares your Self Assessment figures. Full review: /directory/quickbooks-review/.
- Xero Simple (£7/month) or Ignite (£18/month) — the accountant-friendly choice if you already have one. Full review: /directory/xero-review/.
- Coconut (MTD filing £12.99/month) — a simpler, mobile-first sole trader app; free for two years with a Zempler account. Full review: /directory/coconut-review/.
- Wave / Zoho Invoice / Clear Books — genuinely free invoicing tiers exist, but none is built around UK VAT and MTD filing the way FreeAgent is.
What are the honest drawbacks?
- The +VAT kicker. £19/month is never £19 — it’s £22.80 leaving your account. Every UK software price works this way, but budget the inc-VAT figure.
- No permanent free tier. There’s a 30-day trial, and then you pay — the free route means holding a specific business bank account, which is a bigger commitment than a software subscription.
- Smart Capture is capped. 10 receipts and bills a month is fine for a lean freelancer; photograph every expense and you’ll need the £5/month unlimited add-on.
- UK-only by design. It’s built around UK tax rules. If you trade internationally with multi-currency invoicing, Xero or QuickBooks serve you better.
- The discount cliff. 50% off for six months feels generous, then £19/month lands in full. Put a reminder in for month seven and check you still need the plan.
- More than invoicing needs. If your only problem is sending invoices and getting paid, FreeAgent’s tax engine is machinery you’re paying for and not using.
Verdict
FreeAgent is the right buy for a UK sole trader who wants tax handled inside the same app that does the invoicing — and it’s hard to beat on value if it comes free with your business bank account. If you only need invoices and your accountant handles tax, buy less software.
This is general information, not financial advice. If the amount is large or the situation is disputed, get proper professional advice. Prices change — check FreeAgent’s current UK pricing before you commit.