Overview

FreeAgent brings business accounts, invoicing, expenses and tax administration together, with reports including Profit and Loss, Balance Sheet and Trial Balance. Its bank feeds from most UK banks can help keep records current; support for Open Banking and HMRC VAT connections also makes it a natural fit for UK tax workflows.

Founded in 2007 and headquartered in Edinburgh, FreeAgent serves small businesses as well as accountants and bookkeepers. Its breadth is useful, but not every workflow is available in every accounting mode: cash-basis accounting excludes Stock and Payroll.

Key features

Accounting, invoicing and tax

FreeAgent builds real-time accounts from bank statements, invoices and expenses. Recurring invoices, estimates that convert into invoices, automated late-payment reminders and payments through Stripe or PayPal cover much of the routine billing cycle. For firms that want to track time as well as expenses, those functions are also available.

It can generate MTD-compatible VAT returns and file them directly to HMRC. Self Assessment and end-of-year filing features are listed for relevant business types, while payroll calculates PAYE and National Insurance and can submit Real Time Information to HMRC. These tax and payroll workflows are a meaningful advantage for UK businesses, though cash-basis users lose access to payroll.

Mobile, integrations and security

The Android and iOS apps handle expense recording, time tracking, invoice management and bank transaction reconciliation, so owners can keep up with routine admin away from a computer. FreeAgent also supports partner integrations, but it does not provide detailed support for third-party products developed and supported outside the company.

Data in transit uses HTTPS and TLS 1.2 encryption, and stored data uses 256-bit AES encryption. FreeAgent says its data centres hold ISO 27001, 27017 and 27018 certifications and that it is Cyber Essentials Plus certified. UK-based support accountants can be contacted online or by phone.

Pricing

Pricing varies by business type, and the published offers include introductory discounts. The Sole trader monthly offer is £9.50 per month for six months, then £19/month; Partnership or LLP is £13.50 per month for six months, then £27/month; Limited company is £16.50 per month for six months, then £33/month. Landlord is £5 per month for six months, then £10/month. Those offers are billed monthly and exclude 20% VAT; optional add-ons may cost extra.

Annual billing is offered for some plans: Sole trader costs £95 per year for the first year, then £190/year, and Landlord costs £50 per year for the first year, then £100/year. Prices exclude 20% VAT, and the Landlord plan may also require the optional Smart Capture Unlimited add-on. The plan prices and renewal terms make the introductory period important to budget for rather than treating the discount as the ongoing rate.

Other displayed monthly prices are £10.00 for Sole trader, £19.00 for Partnership or LLP and £33.00 for Limited company. A Free plan is also shown at £0.00, alongside a 30-day trial. A separate bank-account-funded account is free while eligible conditions are met: retain a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or hold a Mettle account with at least one transaction per month. Optional add-ons can still be chargeable.

Smart Capture includes up to 10 receipts and bills per month for all businesses. The Unlimited add-on costs £5.00 per month, billed monthly, excluding 20% VAT. That is a modest but consequential extra for businesses processing receipts and bills regularly. FreeAgent offers a broad suite of workflows, but readers should account for the renewal rate, VAT and any add-ons when comparing plans.

Platforms

FreeAgent runs on the web and has Android and iOS apps. Its mobile tools cover common recording, invoice and reconciliation tasks rather than leaving all accounting work to a desktop.

Who it's for

FreeAgent is a strong match for UK sole traders, partnerships and limited companies that want bookkeeping, invoices and tax administration connected to bank feeds. Landlords have a dedicated plan, while accountants and bookkeepers are also among its intended users. It is less suitable for a business that needs Stock or Payroll while using cash-basis accounting, or one that depends on detailed FreeAgent support for third-party integrations.

Pros and cons

UK tax workflows: MTD VAT returns can be filed directly to HMRC, and payroll can submit Real Time Information.
Connected accounts and billing: Open Banking feeds from most UK banks sit alongside recurring invoices, reminders and online payments.
Useful mobile coverage: The apps include expenses, time tracking, invoice management and reconciliation.
Capture cap: Standard Smart Capture is limited to 10 receipts and bills monthly; unlimited use costs extra.
Cash-basis trade-off: Choosing that accounting basis excludes Stock and Payroll.
Integration support boundary: FreeAgent does not provide detailed support for third-party integrations.

Alternatives

Clear Books is worth considering for a sole trader seeking a forever-free MTD-ready bookkeeping plan with no transaction limits; its listed Sole Trader plan is £5.00 per month. BUSY may suit a web-only user looking for a free billing and accounting plan with multiple companies and financial years. Odoo Accounting is an option for readers seeking a free one-app plan across web, mobile or self-hosted platforms.

Wave offers a free Starter plan with unlimited estimates, invoices, bills and bookkeeping records, with online payments charged at 2.9% + $0.60 per credit card transaction. Zoho Books has a free plan for solopreneurs and micro businesses while annual revenue remains below $50K, limited to one user and one account. FreshBooks is a paid alternative with a free trial and Lite, Plus and Premium plans.

Zoho Inventory is the more focused alternative for inventory needs, with its free plan limited to 50 orders per month, one user and one location. Marg ERP is another alternative; its listed editions include user and company limits.

For category comparisons, see Gym Accounting Software, Bookkeeping Software, SaaS Accounting Software, Freelance Invoicing Software and Salon Accounting Software.

Verdict

Choose FreeAgent if you run a UK small business and want bank-fed accounts, invoicing and HMRC tax workflows in one service, with mobile access for everyday admin. Look elsewhere if cash-basis accounting must coexist with Stock or Payroll, or if your receipt volume makes the 10-item monthly allowance and paid upgrade unattractive.

	Express Accounts	FreeAgent
Free plan	Yes	Yes
Free trial	No	Yes
Paid from	Free	£4.17/mo
Open source	No	No
Platforms	macOS, Web, Windows	Android, iOS, Web
Free plan	Yes	Yes
Financial reports	Yes	—
Sales tax tools	Yes	—
Multi-currency	Yes	—

Express Accounts vs FreeAgent

Express Accounts

FreeAgent