The best free MTD software for landlords (and what's free with a catch)

“Free MTD software” can describe three quite different offers: a permanent free tier, a subscription paid for through a qualifying bank account, or a trial that eventually asks for payment. A landlord comparing the headlines can therefore reach the right price for the wrong product.

This guide separates the ongoing free routes from limited trials and low-cost paid software. The useful question is not only whether the monthly price begins at zero, but which property, transaction, banking or filing condition brings that price to an end.

Clear Books offers the broadest published free route

Clear Books publishes a permanent free plan for sole traders and landlords with no transaction limit. It includes digital records and quarterly MTD updates, and Clear Books says people with property and self-employment income can manage both in one place. That makes it a materially different option from a bank-funded licence or a property-only free tier.

Its pricing page lists the year-end MTD tax return as included, while another Clear Books product page still describes that part as coming soon. Check that the final-return feature is live for your account before relying on it. The paid plan adds receipt scanning and stronger support rather than removing a transaction cap.

Pandle keeps MTD submissions and usage on the free plan

Pandle’s free plan includes MTD Income Tax submissions, bank imports and no usage limits. The £5 plus VAT Pro plan is mainly where automation appears: live bank feeds, receipt uploads, mileage tracking and Projects for separating each property. A landlord can therefore start free, but a larger portfolio may find the Pro workflow easier to keep clean.

Sage Sole Trader offers a permanent free tier for modest activity

Sage offers this tier without a trial period, credit card or bank requirement. It does have a clear usage cap: five sales invoices and twenty-five categorised transactions a month. If your situation is one property or a small trade with light activity, the allowance may be enough. Several properties or frequent transactions can use it quickly, at which point the paid tier becomes part of the comparison.

FreeAgent can work well when your bank account already qualifies

FreeAgent’s bank-funded offer is permanent while the qualifying account remains open. A NatWest, RBS, Ulster Bank or Mettle business account can include FreeAgent without a separate subscription, and the product is not restricted by Sage’s monthly transaction cap. Without a qualifying account, FreeAgent is a paid product, with different direct prices for landlords and sole traders.

If you do not already use one of those banks, compare the whole banking relationship rather than treating the software as an isolated saving. Account fees, service, integrations and the effort of moving payments may matter more than the direct software subscription.

Landlord Studio is free for small portfolios, but the filing cost still matters

Landlord Studio’s GO plan is free for up to three properties, so it can cover a small portfolio without a monthly subscription. The plan still charges £5 for each MTD submission. Four quarterly updates therefore cost at least £20 across the year, with the tax return still to submit. The paid plan includes submissions, while both versions remain property-focused and do not cover a separate sole trade.

Untied belongs in a different category. Its free access is a 30-day trial, and filing requires a paid plan. It may still suit someone with mixed income, but the trial should not be compared with a permanent free tier.

VitalTax is not free, but the low annual cost makes it worth comparing

VitalTax is not free, but its annual price and different way of working make it useful in the same comparison. It is bridging software: it doesn’t replace your spreadsheet, it sits on top of one and handles the actual submission to HMRC. Individual pricing was £30 plus VAT a year when checked on 8 July 2026, which puts it below many paid upgrades that follow once a free cap is exceeded. If you already keep tidy records in Excel and just need the submission layer, it can remain less expensive than moving the whole record-keeping process into a subscription platform.

Where the free options usually stop being enough

A free subscription can now cover more than light record keeping. Clear Books publishes a mixed-income route, and Pandle includes free MTD submissions without a usage cap. The point where payment starts is more often automation, document capture, portfolio separation or support. Joint ownership, foreign property, former FHL records and a complete year-end return still need an explicit provider check because a zero price does not prove that every part of a return is supported.

Rather than read through this and try to match your own situation against four sets of small print, the selector asks about your properties and income directly, then shows which of these, if any, looks like a free fit. The full comparison shows the free-tier status and conditions for every product we track.

Before choosing a free route, check where the conditions start to matter

Is there a completely free option with no conditions at all?

Clear Books and Pandle both publish permanent free MTD routes without a bank requirement or trial expiry. Their paid plans add useful automation and support, so the remaining condition is practical fit rather than a countdown to a mandatory subscription.

I’ve got two properties and a side business. Is anything free for me?

Clear Books says its free MTD product can keep property and self-employment income together. Pandle also includes free MTD submissions, although its per-property Projects tool is part of Pro. Confirm joint ownership, foreign-property and final-return needs before treating either as a complete fit.

Should I switch banks just to get free software?

It can be worth it if FreeAgent’s paid price is the alternative and you’re not attached to your current bank, but it’s a decision about your banking relationship, not just your accounting software, so weigh it as that.