FileThat vs FreeAgent for Making Tax Digital.
FreeAgent files quarterly updates, final declarations and VAT returns, and it is free with some business bank accounts. If you do not bank there, here is what a year of each costs.
Prices from FreeAgent
Checked 1 October 2026
VAT included
A year of Making Tax Digital: FileThat and FreeAgent
| Software | How you pay | A year, sole trader (4 updates) | A year, VAT registered (4 updates and 4 VAT returns) |
|---|---|---|---|
| FileThat | £3.99 to £5.99 per submission, set by your income. Final declaration and NIL VAT returns free. At most £55 a year. | £15.96 to £23.96 | £31.92 to £47.92 |
FreeAgent Sole Trader Checked 1 October 2026, FreeAgent pricing | £190 a year plus VAT (or £19 a month), after 50% off for the first 6 monthsFree while you have a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or a Mettle account with at least one transaction a month | £228.00Sole Trader | £228.00Sole Trader |
Regular prices, including VAT where the provider quotes without it. A VAT-registered business not on the Flat Rate Scheme can usually reclaim that VAT.
Where FreeAgent is the better choice
Free with your bank
If you bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle, FreeAgent can be free, which nothing per submission can beat.
A long track record
FreeAgent has served UK freelancers for many years. FileThat is newer, with fewer users.
Every provider side by side: compare MTD software.
Where FileThat is the better choice
No bank account required
FileThat costs the same whoever you bank with: £15.96 to £23.96 a year for a sole trader's four quarterly updates.
Free NIL VAT returns
A VAT return with every box at zero never costs a credit, and nor do final declarations or amendments.
Never more than £55
Once you have paid £50 in a tax year, everything else you file is free. The most you can pay is £55.
FileThat's prices in full: FileThat pricing.
Straight answers
Who gets FreeAgent free?
FreeAgent is free while you have a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or a Mettle account with at least one transaction a month. If that is you, it will cost you less than any per-submission price.
Is FileThat cheaper than FreeAgent?
For filing, usually. A sole trader's four quarterly updates cost £15.96 to £23.96 a year on FileThat, against £228.00 a year on FreeAgent Sole Trader (£190 a year plus VAT, regular price). FreeAgent may still be worth more to you if you need what it does besides filing.
Can I move from FreeAgent to FileThat part way through the year?
Yes. Bring your records for the year so far, by upload or by hand, and connect FileThat to HMRC. Quarterly updates you have already sent stay with HMRC, and because updates are cumulative, your next one covers the whole year to date.
Does FileThat file the final declaration?
Yes, and it is free, as are amendments and NIL VAT returns. FileThat files quarterly updates, the annual submission, the final declaration and VAT returns directly to HMRC. Only a new quarterly update or a VAT return that is not NIL uses a credit.
Does FileThat connect to my bank?
No. There is no live bank feed. You download a CSV of your transactions from online banking and upload it, and FileThat reads it into records. It is a deliberate choice to hold less of your data, and it does mean one more step than a bank feed.
See if per-submission suits you
4 free credits, no card needed. No subscription, and never more than £55 in a tax year.
Get started free