Sage Sole Trader vs FreeAgent: best MTD software in 2026

Sage Sole Trader

Free

Aimed at: Non-VAT registered sole traders who want free, MTD-ready accounting from a trusted UK brand

4.0/5

Try Sage Sole Trader Read the full review →

FreeAgent

Free with NatWest/RBS, else £19/mo

Aimed at: UK sole traders & micro limited companies who want a simple all-in-one package

4.5/5

Try FreeAgent Read the full review →

Last verified on 30 September 2026. Sources: Sage Sole Trader and FreeAgent provider websites, and the HMRC list of MTD software . Prices may include VAT or be promotional and can change at any time.

Sage Sole Trader and FreeAgent are both HMRC-recognised for MTD Income Tax. Sage Sole Trader is non-vat sole traders who want a simple, low-cost option; FreeAgent is uk sole traders & micro limited companies who want a simple all-in-one package.

Quick comparison

	Sage Sole Trader	FreeAgent
Pricing	£7/month, free with NatWest	Free with NatWest/RBS/Mettle/Ulster, otherwise £19/month
Best for	Non-VAT sole traders who want a simple, low-cost option	UK sole traders & micro limited companies who want a simple all-in-one package
Free tier	Yes	Yes
Bank feeds	Limited	Limited
Multi-currency	No	No
Invoicing	Yes	Yes
Mobile app	Yes	Yes

Sage Sole Trader overview

Sage Sole Trader is non-vat sole traders who want a simple, low-cost option. Key strengths: Free with NatWest, Lower price than FreeAgent, Simple interface. Limitations: No multi-currency, Limited features.

FreeAgent overview

FreeAgent is uk sole traders & micro limited companies who want a simple all-in-one package. Key strengths: Free with NatWest, Simple interface, Strong freelancer features. Limitations: No multi-currency, Limited bank feeds.

Which should you choose?

Pick Sage Sole Trader if…

Free with NatWest
Lower price than FreeAgent
Simple interface

Pick FreeAgent if…

Free with NatWest
Simple interface
Strong freelancer features

Verdict

Sage Sole Trader vs FreeAgent: Both are solid MTD-recognised options. Sage Sole Trader excels for non-vat sole traders who want a simple, low-cost option, while FreeAgent is better for uk sole traders & micro limited companies who want a simple all-in-one package. Choose based on your specific needs and budget.

Still not sure which one fits?

Comparing prices and features only gets you so far. Answer five quick questions about how your business actually works and the MTD Software Finder will shortlist the tools that genuinely suit your situation — and be honest about what each one can't do.

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Sage Sole Trader vs FreeAgent: how we researched this

We checked both Sage Sole Trader and FreeAgent against the official HMRC list of MTD-compatible software on 30 September 2026, and verified pricing from each provider's own website on the same date. We judge what each tool genuinely can and can't do for a real UK sole trader, freelancer or landlord — including limitations a free trial won't volunteer — and we never let commission influence the order we present things. Some links on this page are affiliate links; we may earn a small commission if you buy through them, at no extra cost to you.

Also worth considering

If neither Sage Sole Trader nor FreeAgent feels right, these HMRC-recognised options are worth a look:

Xero Sole traders & landlords who want a mature ecosystem and lots of integrations Read the review →
Sage Accounting Established UK businesses & landlords who want a recognisable UK brand Read the review →
QuickBooks Sole traders & small businesses already in the Intuit ecosystem Read the review →

Bottom line: who should pick what

Your situation	Our pick	Why
Best for limited companies	FreeAgent	UK sole traders & micro limited companies who want a simple all-in-one package
Best for VAT-registered businesses	Sage Sole Trader	Non-VAT registered sole traders who want free, MTD-ready accounting from a trusted UK brand

Not sure which camp you fall into? Run the 5-question Software Finder and we'll shortlist the tools that fit you.

Sage Sole Trader vs FreeAgent: common questions

Which is better, Sage Sole Trader or FreeAgent?

The honest answer is "it depends on your situation". Sage Sole Trader is aimed at traders who fit "Non-VAT registered sole traders who want free, MTD-ready accounting from a trusted UK brand", while FreeAgent is aimed at people who fit "UK sole traders & micro limited companies who want a simple all-in-one package". If that doesn't settle it for you, run the 5-question MTD Software Finder and it will shortlist the tools that actually fit your circumstances.

Is Sage Sole Trader or FreeAgent cheaper?

Sage Sole Trader starts from a lower headline price (Free) than FreeAgent (Free with NatWest/RBS, else £19/mo). Check the plans on each provider's site for the full picture — the cheapest headline tier is often not the one you'll end up on.

Can I move from Sage Sole Trader to FreeAgent later?

Yes. MTD just requires you to keep digital records and send quarterly updates to HMRC — it does not lock you into any one tool. Most MTD software lets you export your accounting data, so you can switch providers and simply start your next quarterly update in the new software. Keep your old records for at least six years.