FreeAgent has a distinct identity in the UK accounting software market. Owned by NatWest Group since 2018, it focuses tightly on the needs of UK contractors, freelancers, sole traders and small limited companies. For NatWest, RBS and Mettle business banking customers, FreeAgent is available free of charge as long as the bank account remains open, which has driven significant adoption.
Strengths for contractors and freelancers
FreeAgent's product design choices reflect its target audience. Time tracking and project profitability are first-class features. Self Assessment estimation is built into the dashboard from day one. The dividend voucher and salary calculator for owner-managed limited companies is one of the cleanest in the market. The mobile app is genuinely useful for receipt capture on the go.
- IR35 awareness: Reporting and structuring helps inside-IR35 and outside-IR35 contractors track their position.
- Self Assessment: The personal tax module is integrated and accountant-friendly.
- VAT and MTD: Fully HMRC-recognised with a clean flat rate, standard and cash accounting workflow.
- Bank-bundled pricing: Free for eligible NatWest, RBS and Mettle business banking customers.
Where it is less suitable
FreeAgent is not designed for businesses with complex inventory, multi-entity consolidation or large transaction volumes. It is single-currency only on the standard plan. The integrations marketplace is narrower than Xero or QuickBooks. For a fast-growing business that may need to scale beyond ten employees or add an e-commerce sales channel, FreeAgent often becomes a limitation rather than an enabler within two to three years.
MTD ITSA on FreeAgent
FreeAgent is well-placed for MTD ITSA given its sole-trader and landlord client base. Quarterly updates, EOPS submission and the final declaration are handled within the platform, and the workflow has been refined through the 2025 pilot programme.
Should you stay or switch?
For a steady-state contractor or one-person limited company, FreeAgent is excellent and (for NatWest customers) effectively free. For a business outgrowing the freelancer phase, Xero or QuickBooks typically offers a longer runway. We see many clients start on FreeAgent during the early contracting years and move to Xero when they hire their first employee or take on a more complex client base.
How PushDigits supports your software choice
As ICAEW Chartered Accountants, we support FreeAgent clients alongside our Xero and QuickBooks practice. For contractors, freelancers and owner-managed limited companies, explore our bookkeeping and Self Assessment services, or book a consultation.