Tool profile
FreeAgent: cost, fit and limits
FreeAgent is cloud accounting software made by FreeAgent Central Limited, registered in Edinburgh, that combines bookkeeping, invoicing, payroll and HMRC tax filing for UK sole traders, limited companies, partnerships and landlords, with one AI-labeled receipt feature.
What to know first
FreeAgent prices by business type rather than by user count: £19 a month for sole traders, £33 for limited companies, with half off for the first six months and a 30-day trial. A free plan exists for customers who keep a qualifying business current account with one of four named banks. The only feature the vendor labels as AI is Smart Capture for receipts and bills, so the product reads as UK tax software with one AI helper attached.
FreeAgent at a glance
| Maker | FreeAgent Central Limited, United Kingdom |
|---|---|
| Free plan | Yes |
| Entry price | £19 per month for the sole trader plan |
| API access | No |
| Category | Best AI Accounting Software in 2026, rank 12 of 12 |
| Website | freeagent.com |
Who FreeAgent is best for
UK sole traders filing Self Assessment
The sole trader plan includes Self Assessment, VAT and MTD for Income Tax filing to HMRC, so one ledger feeds the returns without a separate filing tool.
Limited company directors
The limited company plan adds end-of-year filing, payroll, banking and cashflow, and a dashboard projection looks 90 days ahead for owners who watch cash closely.
Landlords with jointly owned property
Landlord mode splits income and costs by ownership percentage, and the unincorporated landlord plan starts at £10 a month, which is the lowest tier on the pricing page.
Accountants running many small UK clients
A Practice Dashboard supports bulk actions such as explaining transactions across clients, which suits firms that handle routine bookkeeping for many micro businesses.
FreeAgent plans and pricing
| Plan | Price | What it includes |
|---|---|---|
| Sole trader | £19 per month (£9.50 for the first six months), or £190 per year | Payroll, MTD for Income Tax, VAT, Self Assessment, tax timeline, banking and cashflow. Smart Capture beyond 10 uses a month needs an add-on. |
| Partnership or LLP | £27 per month (£13.50 for the first six months), or £270 per year | The daily admin set including payroll, VAT and the tax timeline, with no Self Assessment or end-of-year filing. |
| UK limited company | £33 per month (£16.50 for the first six months), or £330 per year | The full set: payroll, VAT, end-of-year filing, tax timeline, banking, smart categorisation, cashflow and one-click payments. |
| Unincorporated landlord | £10 per month (£5 for the first six months), or £100 per year | Property finances, MTD for Income Tax, VAT, Self Assessment and the tax timeline, but no payroll. |
| Free | £0 | Open to every business type while a qualifying NatWest, RBS, Ulster Bank or Mettle business account is kept. The pricing page does not list its features separately. |
Checked November 2026.
What FreeAgent does
- Smart Capture
- The vendor describes this as AI-powered: it extracts data from bills and receipts, matches them to transactions and categorises the spend. Ten uses a month are included, and more cost £5 a month as an add-on.
- Direct HMRC submissions
- VAT returns and Self Assessment go to HMRC from the same books, and payroll submits RTI filings. Payslips and P60s are produced in the app, so no export to a filing portal is needed.
- Cashflow projection
- The dashboard shows a 90-day forecast of money in and out. Automated invoice reminders and one-click customer payments sit alongside it, aimed at owners chasing late payers.
- Landlord mode
- Property income and costs are split by ownership percentage, which helps couples or co-owners who file separate returns from one shared set of rental books and statements.
- Practice Dashboard
- Accountants get a view across their clients with bulk actions, such as explaining many transactions at once. Integrations with Dext, Syft and Bright extend it into capture and reporting.
How FreeAgent handles your data
The security page states that FreeAgent hosts customer data in Ireland across multiple availability zones, with TLS 1.2 in transit and 256-bit AES at rest. It lists Cyber Essentials Plus for the company; ISO 27001, 27017 and 27018 are credited to the data centres, not to FreeAgent, and SOC 2 is not mentioned. Point-in-time recovery and offline daily snapshots are described, but no retention period is given. The pages read do not say whether customer data trains AI models.
Where FreeAgent falls short in practice
- UK-only tax coverage. Prices are in pounds sterling and every filing listed goes to HMRC. The pricing page shows no EU VAT, e-invoicing or multi-currency tax features, so a business outside the UK has little reason to use it.
- Capped receipt capture. Smart Capture allows 10 receipts and bills per calendar month on the base plans. A business with dozens of supplier bills a month will either pay for the £5 add-on or enter the rest by hand.
- Marketplace connection costs extra. The Amazon UK connection is a £6 a month add-on, offered only to limited companies, partnerships and sole traders. Sellers who need several marketplaces should check what the pricing page lists first.
Works with
Alternatives to FreeAgent
FreeAgent: common questions
Is FreeAgent actually free?
The free plan applies to every business type, but only while the customer keeps a qualifying business current account with NatWest, RBS, Ulster Bank or Mettle. Without one, the paid plans start at £19 a month for sole traders, and a 30-day trial is offered on the homepage.
Which FreeAgent plan fits a limited company?
The UK limited company plan at £33 a month, or £330 a year, is the full set. It adds end-of-year filing to payroll, VAT, banking and cashflow. Partnership and LLP plans leave out end-of-year filing and Self Assessment. Pricing is per business type, not per user.
What does AI do in FreeAgent?
The vendor labels one feature as AI: Smart Capture reads bills and receipts, extracts the data, matches it to bank transactions and categorises the outgoing. Smart categorisation and Radar are described without the AI label on the pages read. Ten uses a month are included.
Where does FreeAgent store customer data?
The security page says Ireland, spread across multiple availability zones. Data is encrypted with TLS 1.2 in transit and 256-bit AES at rest. FreeAgent itself holds Cyber Essentials Plus, while the ISO standards listed belong to its data centres, not the company.
Can FreeAgent file taxes outside the UK?
The pricing page shows only UK filings: HMRC VAT, Self Assessment, MTD for Income Tax and RTI payroll. No EU VAT or e-invoicing feature is listed, so businesses based outside the UK should look at other accounting software instead. The vendor's pages do not say otherwise.