HMRC recognised

Free MTD software for sole traders & landlords.

Record income and expenses, submit quarterly updates to HMRC, and file your end-of-year income tax return, with Clear Books. For free.

Clear Books free MTD software on a laptop and mobile

HMRC recognised · Trusted by 30,000+ UK businesses

✓ HMRC recognised MTD software 🇬🇧 UK-based support team £0, no hidden costs
The basics

What is Making Tax Digital for Income Tax?

HMRC is replacing the traditional annual Self Assessment with a new system of digital record-keeping and quarterly updates. If you're a sole trader or landlord above a certain income threshold, you'll need to use HMRC recognised software. Clear Books is that software, and for most people, it's free.

Apr 2026
MTD required for income over £50,000
Apr 2027
Extends to income over £30,000
4/yr
Quarterly updates required
£0
Clear Books free plan, forever
Who it's for

Free MTD software built for your situation.

Whether your income comes from self-employment, property, or both, we've made it straightforward to sign up and stay compliant.

Self-employed sole traders

Record business income and expenses, submit your quarterly updates, and file your end-of-year Self Assessment return, completely free.

Sign up as sole trader

Landlords

Track property income from UK or overseas lets, manage expenses, and submit compliant MTD returns to HMRC, without paying for software.

Sign up as landlord

Both (sole trader & landlord)

Have income from self-employment and property? Clear Books has a free MTD plan for each type of income, so both obligations are covered.

Get started free
MTD quarterly update submission inside Clear Books
Q2 update submitted to HMRC
Next deadline: 5 Nov
Everything included

What the free MTD plan includes.

No upgrade walls when it comes time to file. Everything below is included in the free plan, for sole traders and landlords alike.

  • Record income and expenses: Create digital records with ease.
  • Keep track of business profitability: Get at-a-glance profit and loss reporting to know if you're on track.
  • One-click MTD quarterly updates: Submit MTD quarterly updates to HMRC in one click.
  • Easy end-of-year tax returns: Review and submit your end-of-year MTD tax return.
  • Export your data any time: No lock-in here!
  • Construction Industry Scheme: Works for construction subcontractors.
Get started for free
Truly free, not "freemium"

The free MTD plan for sole traders & landlords.

No timer. No sneaky upgrade wall the moment you try to file.

Why we made this free.

The new MTD rules will catch a lot of sole traders and landlords off-guard. We didn't want cost to be the reason someone misses a deadline and picks up an HMRC penalty.

So we built a permanently free plan with everything you need to stay compliant. If you outgrow it, say you need VAT filing or payroll, our paid plans start at £5/month.

  • No 14-day trial timer
  • No MTD filing hidden behind a paywall
  • Sole traders and landlords, both covered
Common questions

Free MTD software FAQ.

Is the free MTD software really free?
Yes, no credit card, no time limit, no "upgrade to file" walls. The free plan covers quarterly updates and the end-of-year final declaration for sole traders and landlords, with no transaction limits.
Who needs to follow Making Tax Digital for Income Tax?
Since 6 April 2026, sole traders and landlords with gross income over £50,000 must file quarterly updates via MTD-recognised software. The threshold drops to £30,000 from April 2027, and £20,000 from April 2028.
Is Clear Books recognised by HMRC for MTD?
Yes, Clear Books appears on HMRC's official list of MTD-compatible software for both VAT and Income Tax Self Assessment. We are fully recognised for MTD for Income Tax.
Can I use the free plan as a landlord?
Absolutely. The free plan covers property income from UK and overseas residential lets. You can also combine sole trader and property income in a single account, ideal if you have income from both.
What is a quarterly update?
A quarterly update is a short digital summary of your income and expenses for the quarter, sent to HMRC four times a year. With Clear Books your records are already organised, you review the figures and click submit. Most users finish in under 10 minutes.
Do I still need to file a Self Assessment?
Under MTD for Income Tax, you'll complete a "final declaration" at year-end instead of a traditional Self Assessment return. Clear Books prepares this automatically using the data from your four quarterly updates.
What happens if I outgrow the free plan?
If you later need VAT filing, multi-user access, or payroll, our paid plans start from £5/month. Upgrade at any time with no data loss, your records stay exactly as they are.
What is CIS and does the free plan support it?
The Construction Industry Scheme (CIS) is a set of HMRC rules for contractors and subcontractors in the construction industry. Yes, CIS support is included in the free plan at no extra cost.
No timer · No catch

Get your free MTD software today.

Sign up in two minutes and be ready to submit your first quarterly update when it arrives. Sole traders and landlords welcome, individually or combined.