FreeAgent
A UK HMRC ledger: connect the bank, invoice, and file VAT. A US edition exists; most US shops should pick something else.
Best for
UK sole traders, contractors, and small limited companies who want HMRC filing in the same file as the bank feed, especially if NatWest Group already funds the licence.
Not ideal if
A US shop whose CPA will only open QuickBooks, who needs 1099s or US payroll, or who banks at a US bank with no Open Banking feed on FreeAgent's list.
Standout
UK HMRC work (MTD VAT, Self Assessment, and most micro-entity CT600 / FRS 105 filings) lives in the same weekly bank-explain as the invoices.
About FreeAgent
FreeAgent is the ledger. You connect a UK bank through Open Banking (or upload a statement), explain the lines, send invoices, and snap receipts. Those posts are the books. Profit and loss, the balance sheet, and a tax timeline come out of FreeAgent. On a UK account you can file Making Tax Digital VAT, Self Assessment, and (for most limited companies) CT600 and FRS 105 accounts from the same file. Invite your accountant as a user, or move the file onto a partner Practice Dashboard.
It replaces QuickBooks Online and Xero. It does not sit on those files. There is a US edition (sole prop, partnership, LLC, C Corp, S Corp) with sales-tax rates and Schedule C sales-tax reports. That edition does not file 1099s, does not run US payroll (you journal it), and the published bank-feed list is UK Open Banking banks. Wave and Kick are the US replacement ledgers in this directory. Xero is the other UK cloud ledger that US firms already know.
People who stick are usually UK sole traders, contractors, and small limited companies, especially if NatWest, RBS, Ulster Bank, or Mettle already funds the licence. They stay because HMRC filing lives in the same weekly review as the bank feed. US owners who land on the /us site should treat it as a thin overlay, not a QuickBooks substitute.
What people who used it say
What they tend to like
DIY UK contractors can file from the same weekly review
r/ContractorUK owners say VAT, payroll, corp tax, and Companies House submissions are doable solo once the first year is set up, as long as you already know what a small Ltd must file.
The NatWest / Mettle free licence is the usual reason to start
r/freelanceuk and r/UKPersonalFinance keep pointing sole traders at FreeAgent because the bank already pays for it.
Bank explain plus invoices is enough for a simple UK service shop
Contractors and sole traders describe a short weekly categorisation job, then reminders and HMRC dates on the Tax Timeline.
What they hesitate about
Xero is the step up once volume or ecommerce grows
r/smallbusinessuk bookkeepers call FreeAgent fine for a few transactions and clunky on supplier invoices, splits, and bank rules versus Xero cash coding.
US tax work is not the product
Official US help documents payroll as journals. Sales-tax reports and Schedule C sales-tax reporting exist. 1099 e-file and US bank feeds do not show up on pages opened this pass.
Year-end filing has real limits
Official help: FRS 105 micro-entities only; no filing for companies limited by guarantee. Third-party write-ups add marginal relief and some CT600 supplementary pages as gaps.
How it hits your books
- Replaces your ledger
- Yes
- QuickBooks Online
- No
- Xero
- No
- Multi-entity
- Partial
- Inventory
- Partial
- 1099s
- No
- Payroll
- No
Close is you: explain the feed (or the uploaded statement), match invoices and bills, attach receipts, then run P&L, balance sheet, and trial balance in FreeAgent. UK VAT periods and the Tax Timeline are part of that close. Nothing writes back to QuickBooks. US payroll is a journal, not a run.
Invite the accountant as a user (level 7 or 8), or transfer the account to a FreeAgent partner Practice Dashboard. Export an Excel dump (level 8) plus PDF P&L, balance sheet, and trial balance. FreeAgent does not e-file a US income tax return or 1099s. UK partners can file VAT, Self Assessment, and (with limits) CT600 and Final Accounts from the file.
Images
Features
Explain the bank feed, or upload a statement
UK Open Banking and named API feeds (NatWest, Barclays, HSBC, Starling, Monzo Pro, Wise, and peers) import lines daily. You explain each line to a category. Official help lists major UK banks, not Chase or Bank of America. If the bank is missing, upload a statement or type it in.
Send invoices and collect on the invoice
Create invoices and estimates, set reminders, and convert an estimate in one click. Customers can pay through Stripe, PayPal, GoCardless (GBP), or Tyl by NatWest. Recurring invoices and the mobile app (iOS 18+, Android 9+) are included. Users, clients, and projects are not seat-metered on the pricing page.
Receipts and Smart Capture
Snap or upload a receipt. Smart Capture extracts data, matches the bank line, and categorises. Every plan includes 10 captures a calendar month. Unlimited is an add-on: £5/month + VAT on UK, $6/month on US.
UK HMRC filing from the same file
UK accounts file MTD VAT and Self Assessment to HMRC. Sole traders and landlords also get MTD for Income Tax quarterly updates. Limited companies can file FRS 105 Final Accounts to Companies House and a CT600 to HMRC for most micro-entities. PAYE payroll with RTI is on UK accruals accounts, not cash basis.
US edition: sales tax, not 1099s
A US company type exists. You set sales-tax rates (including compound) and run sales and purchase tax reports, plus 1040 Schedule C sales-tax reporting. US payroll is a journal you post yourself. Pages opened this pass do not document 1099 e-file or W-9 tracking.
Projects, time, and stock on accruals
Track time and project income, expenses, and profitability, then bill the hours. Stock items (quantity and value) sit on the accruals basis. Cash-basis UK accounts drop Stock and Payroll. This is not a COGS inventory system like QuickBooks Plus.
Pricing
A US shop that signs up on freeagent.com/us pays $27/month or $270/year after the intro. New customers get 50% off for six months monthly ($13.50) or 50% off the first annual year ($135). Smart Capture past 10 files is another $6/month. There is no NatWest-style free path for a US bank. A UK sole trader pays £19/month or £190/year excl 20% VAT (£22.80 / £228 with VAT). A UK partnership or LLP is £27/month or £270/year. A UK limited company is £33/month or £330/year. A UK unincorporated landlord is £10/month or £100/year. UK add-ons: Smart Capture Unlimited £5+VAT, Amazon UK Marketplace £6+VAT. A 5-person US service shop with ~500 transactions should not pick this to save money versus Wave or Kick; the catch is fit, not the $27 sticker.
US Business
USA sole prop, partnership, LLC, C Corp, or S Corp. 30-day trial. New customers: 50% off the first six months monthly, or 50% off the first year annual.
- Sales tax reporting and multi-currency invoicing
- Invoices, expenses, projects, time tracking
- 10 Smart Capture receipts/bills per month
- UK-based support
- Optional Smart Capture Unlimited $6/month
UK Sole trader
UK self-employed. MTD for Income Tax, VAT, and Self Assessment. 30-day trial. New customers: 50% off first six months or first annual year.
- MTD for Income Tax quarterly updates and final declaration
- MTD VAT and Self Assessment filing to HMRC
- Bank feeds, invoices, expenses, projects, time
- PAYE payroll on the accruals basis
- 10 Smart Capture receipts/bills per month
UK Limited company
UK Ltd. Final Accounts and Corporation Tax data, plus VAT and (director) Self Assessment. The live BookkeepDIY stub showed this tier's intro as the sticker.
- FRS 105 Final Accounts to Companies House (most micro-entities)
- CT600 filing to HMRC for most micro-entities
- MTD VAT, payroll RTI, Self Assessment
- Bank feeds, invoices, expenses, projects, time
- 10 Smart Capture receipts/bills per month
Free with NatWest Group bank
UK only. Same core product as paid. NatWest, Royal Bank of Scotland, or Ulster Bank business current account, or Mettle with at least one transaction a month. Add-ons still charge.
- Same core features as the matching paid UK type
- One funded licence per eligible bank account
- Mettle: make it the primary business account in FreeAgent
- Smart Capture Unlimited and Amazon UK still paid
Integrations
Platforms
Audience
Pick something else instead of FreeAgent
QuickBooks Online
Stay in QuickBooks Online if you are a US shop, your CPA will only open that file, you need 1099s, US payroll, inventory, or classes. FreeAgent replaces the file; it does not sit next to it.
Xero
Pick Xero instead if you want the other paid cloud ledger, a larger US accountant network, or you have already outgrown FreeAgent's bank rules and volume on the UK side.
Wave
Pick Wave instead if you want a US cash-basis file with free invoicing and a $19 bank-feed step, and you do not need HMRC filing.
Kick
Pick Kick instead if you want another US replacement ledger that categorises bank and processor feeds and hands your CPA a year-end package, without a UK tax engine.