There are exactly two routes to genuinely-free UK accounting software that actually works: (1) bank with Mettle / NatWest / RBS / Ulster, get FreeAgent free; or (2) use a feature-light free product that suits low-volume sole traders. Almost everything else marketed as "free accounting software" has caps, restrictions or US-flavoured workflows that make it impractical for UK use beyond a few months.
The shortlist
- FreeAgent (via Mettle/NatWest/RBS/Ulster banking) — the cleanest free path for UK sole traders and small Ltds
- Wave — US-headquartered, free for invoicing and accounting; weak on UK specifics
- QuickFile — UK-built, free up to 1,000 ledger entries per year
- GnuCash — open-source, double-entry desktop; steep learning curve
- Structured spreadsheet + bridging software — works at very low volume; needs bridging for MTD-VAT
1. FreeAgent — free via NatWest banking
NatWest acquired FreeAgent in 2018 and bundles it free with their business banking products. If you bank with Mettle, NatWest, RBS or Ulster Bank, you get the full FreeAgent product at zero cost — no time limit, no transaction limit, no usage cap.
This is the cheapest UK accounting setup, full stop. FreeAgent direct is £19/mo sole trader / £29/mo Ltd. Switching banks to Mettle saves you £228–348/year vs paid alternatives.
Caveats:
- You need to be banking actively with the qualifying bank — if you close the account, FreeAgent reverts to paid subscription
- Mettle is fine for sole traders + single-director Ltds; multi-director Ltds may need NatWest Business proper
- See our Mettle review for the banking side
2. Wave
Wave is the most-marketed "free" accounting platform. Free for invoicing and accounting, with paid add-ons for payments and payroll. The catch: Wave is US-headquartered, and the UK product feels retrofitted.
What Wave is good for:
- UK sole traders with very simple needs and no VAT registration
- Generating clean PDF invoices without subscription
- Basic bookkeeping where you'll DIY your Self Assessment from Wave's reports
Where Wave struggles for UK users:
- MTD-VAT support is limited. Wave isn't on HMRC's MTD-compatible software list as a primary submission tool — you'd need separate bridging software.
- No native Self Assessment generation. Reports are usable but require manual translation to the SA categories.
- No UK bank feeds reliably. Wave's bank-feed coverage is patchy for UK challenger banks.
- USD-centric. Currency formatting and tax assumptions occasionally bite UK users.
Worth it if you're a brand-new UK sole trader earning under £10k/year and want something better than a spreadsheet. Outgrown quickly above that.
3. QuickFile
QuickFile is a UK-built free accounting platform that's been around since 2010. Free up to 1,000 ledger entries per year, paid plans for higher volume.
Pros:
- Genuinely UK-focused (HMRC-aware, MTD-VAT compatible)
- Free tier suits low-volume sole traders
- UK customer support
Cons:
- UX is functional but not polished
- 1,000-entries cap pushes growing freelancers to paid tiers within 12 months
- App ecosystem smaller than Xero / QuickBooks
- Mobile app limited
QuickFile is a credible Wave alternative for UK users who specifically want a UK-built product but don't qualify for free FreeAgent via banking.
4. GnuCash
Open-source double-entry accounting software. Free, runs on your own computer (not cloud). Mature project with decades of development.
The reality: GnuCash is a power-user tool, not a sole-trader-friendly product. The interface assumes accounting literacy; UK tax-specific features are absent; MTD-VAT requires manual export to bridging software; bank feeds don't connect natively. Cloud sync is DIY (Dropbox the database file or use Git, neither is recommended for compliance-grade records).
Worth it only if you're an accountancy enthusiast who specifically wants double-entry desktop software and doesn't mind the friction. Not recommended for UK freelancers who just want to run their business.
5. Structured spreadsheet
Genuinely free, full control, suitable for very low volume. Works for:
- UK sole traders under £20k turnover
- Not VAT-registered (or willing to use bridging software like 123 Sheets, BTC for MTD)
- Fewer than ~30 transactions per month
- Users comfortable with spreadsheets
Our free expense tracker is purpose-built for UK freelancers and runs entirely in your browser — useful as a starter spreadsheet or for cross-checking software.
Limitations: no bank feed automation (manual entry), no MTD submission (needs bridging), no automatic categorisation, much higher per-transaction time cost than software. Over ~30 transactions/month, the time cost of a spreadsheet exceeds the £10–19/mo subscription cost of dedicated software.
"Free" that isn't really free
Watch out for marketing-driven "free" claims:
- 30-day trials marketed as "free" — these convert to paid plans. Not actually free.
- "Free forever" with strict transaction caps — typically 10–20 invoices/month or similar; outgrown within a quarter for any active freelancer.
- "Free" sole-trader-only plans that don't include MTD-VAT — useless if you're VAT-registered.
- "Free" with mandatory paid add-ons for receipt scanning, bank feeds or payments — the base accounting is free but the workflow you actually need isn't.
Decision tree
- Banking is flexible: switch to Mettle → free FreeAgent. Best free UK accounting setup, full stop.
- Banking is fixed and you're a low-volume sole trader: QuickFile (free tier) or structured spreadsheet.
- You want US-style invoicing speed: Wave (with caveats about UK MTD).
- You're an accounting enthusiast on a desktop: GnuCash.
- None of the above appeal: accept the £10/mo for QuickBooks Self-Employed or £15/mo for Xero Starter. Free is rarely worth £100/year of bookkeeping pain.
What about the £10–15/mo paid options?
If "free" doesn't include the workflow you actually need, paying £10–15/mo is reasonable:
- QuickBooks Self-Employed (£10/mo): cleanest UK sole trader workflow. See our QuickBooks Self-Employed review.
- Xero Starter (£15/mo): limited but credible. Better long-term if you'll scale. See our Xero review.
- FreeAgent direct (£19/mo): only worth it if Mettle banking isn't an option for you.
Yes — as long as you bank with Mettle (or NatWest/RBS/Ulster). There's no time limit, no transaction cap. Close the bank account and FreeAgent transitions to its normal paid subscription. See our Mettle review.
FreeAgent (free via Mettle) and QuickFile both support MTD-VAT natively. Wave doesn't — you'd need separate bridging software (123 Sheets, VitalTax, BTC at £10–40/year). GnuCash has no native MTD support either.
Wave is US-focused. UK MTD-VAT support is weak, no native Self Assessment, patchy UK bank feed coverage. Fine for very simple, non-VAT-registered UK sole traders; painful for anyone needing UK compliance features.
Yes, if you're under £20k turnover and not VAT-registered. Above that, the time cost of manual entry typically exceeds the £10–19/mo software cost. Above £90k turnover (VAT registration), you'd need MTD-bridging software anyway, which closes the cost gap further.
Zoho Books offers a free tier for businesses under £50k turnover. UK MTD-VAT support is decent but the UK presence is smaller than Xero/QuickBooks. Worth a look if you're already in the Zoho ecosystem (CRM, Mail).
Likely. Most UK freelancers earning over ~£40k turnover hit the limits of free tiers within 12–18 months (transaction caps, VAT complexity, multi-currency needs, accountant collaboration). Plan for the migration ahead of time — see our switching guide.
Editorial comparison as at May 2026. "Free" terms change frequently — verify on each provider's live site.