No MTD software yet and the deadline is days away? Start here
Genuinely free Making Tax Digital software exists, several options can be set up in a day, and if you already keep a spreadsheet, bridging software keeps you compliant without switching systems. Neither route needs to cost you anything.
What this means for you
HMRC does not provide its own MTD software, but free products exist and HMRC actively encourages providers to offer free tiers for the simplest affairs. Depending on your bank and business type, you may already qualify for one without paying anything.
If you would rather keep using a spreadsheet, that's still allowed. Digital records are required, and spreadsheets meet that requirement once they're digitally linked to HMRC through bridging software, so switching your whole record-keeping system is not the only route to being compliant this week.
The one thing worth checking first: fit, not just price
"Free" and "compatible" are not the same test. A piece of software can be fully MTD compatible and still cost money, and a free option can still be the wrong fit if it doesn't cover your business type (some free tiers exclude landlords or VAT-registered businesses, for example). Check both before you commit under time pressure.
Common questions
Is there a genuinely free option for me?
Often, yes. FreeAgent is free for as long as you hold a NatWest, RBS or Ulster Bank business current account, or a Mettle account with at least one transaction a month. Starling's Accounting Essentials is free for its business current account holders, sole traders and landlords alike. Sage's Sole Trader Free tier is free for non-VAT-registered sole traders, but not landlords. Which one fits depends on your bank and business type, the Software Chooser will narrow it down.
I already keep a spreadsheet, do I have to abandon it?
No. Spreadsheets remain compliant when they are digitally linked to HMRC through bridging software. You do not have to move to full accounting software just to meet this deadline.
Does "MTD compatible" mean the same thing as "free"?
No. Compatible only means the software can file with HMRC. Plenty of compatible software is paid, so check cost and compatibility separately.
What if I do not get set up before 7 August?
Getting set up late is still much better than not filing at all. See what actually happens if you miss the deadline before you assume the worst.