Is there free HMRC MTD software?
Short answer: HMRC itself does not provide free software for Making Tax Digital — it publishes a list of commercial products instead. But there are genuinely free and near-free ways to comply, especially if you already keep your records in a spreadsheet. Here's the honest picture.
What HMRC actually provides (and doesn't)
For the old Self Assessment system, HMRC's own website was the free filing route. Under MTD for Income Tax, that changes: quarterly updates must be sent through commercial software that connects to HMRC's system. HMRC's role is to publish a directory of compatible software, some of which is paid, some free, and some free-with-limits.
The genuinely free routes in 2026
1. A spreadsheet plus bridging software
HMRC explicitly permits keeping your digital records in a spreadsheet, provided the figures reach HMRC through compatible “bridging” software using a digital link (a formula or connection — not re-typing). Your record-keeping layer — the spreadsheet — is free forever; the only cost is the bridging tool, and those are the cheapest products in the market (typically a small annual fee rather than £15–£30 a month for full accounting suites).
2. Free tiers of accounting products
Some vendors offer free plans for a single trade or property business with basic needs. They work — but you adopt their app, their categories and their upgrade prompts, and export can be awkward if you leave. If you already live in a spreadsheet, moving everything into an app to save a small bridging fee is usually the expensive kind of free.
3. Doing nothing until you're in scope
Genuinely free and often forgotten: MTD for Income Tax starts April 2026 only for those with combined self-employment and property income over £50,000 (£30,000 from April 2027, £20,000 from April 2028). Below the threshold, Self Assessment continues as now — you need no software at all yet. Check your gross income against the timetable before buying anything.
Why “free” usually means “your spreadsheet”
For most sole traders and landlords searching for free MTD software, what they actually want is: keep doing what I do now, without a subscription. That is precisely the spreadsheet-plus-bridging model. Your records stay in your own file, in your own categories, readable in ten years' time — and the compliance layer is a thin, cheap tool rather than a new accounting system.
Keep the spreadsheet. Skip the subscription software.
SheetMTD structures your records into HMRC's categories inside Google Sheets — the record-keeping layer is free — and files your quarterly updates from a sidebar once HMRC recognition completes. Built by a UK chartered accountant's practice for people who like their spreadsheet just fine.
See how it works →Quick answers
Does HMRC provide free MTD software?
No. HMRC publishes a directory of commercial software; it does not supply its own MTD filing tool.
Can I use Excel or Google Sheets for MTD?
Yes — spreadsheets are valid digital records, provided figures reach HMRC via bridging software with a digital link. See our full spreadsheet guide.
Is bridging software free?
Some VAT-era bridging tools had free tiers; for Income Tax, expect a small annual fee — still the cheapest compliant route by far. Compare that with £180–£360 a year for typical subscription accounting software.
When do I actually need any of this?
From the April after your combined gross self-employment and property income exceeds the threshold: £50,000 (2026), £30,000 (2027), £20,000 (2028). Deadlines for the quarterly updates are 7 August, 7 November, 7 February and 7 May — see the deadline guide.
General information, not personal tax advice. “HMRC” and “Making Tax Digital” refer to UK government services; SheetMTD is independent commercial software. Check GOV.UK or your accountant for your circumstances.