FreeAgent

FreeAgent is accounting software for small businesses, accountants and bookkeepers. It automates tasks such as invoicing and expenses, supports tax reporting and provides business reports. The software builds real-time accounts from bank statements, invoices and expenses, with Profit and Loss, Balance Sheet and Trial Balance reports. Users can create recurring invoices, automate late-payment reminders, convert estimates into invoices and accept payments through Stripe and PayPal. FreeAgent can generate MTD-compatible VAT returns and file them directly to HMRC. Its payroll calculates PAYE and National Insurance and can submit Real Time Information payroll to HMRC. The iOS and Android apps cover expense recording, time tracking, invoice management and bank transaction reconciliation. FreeAgent supports bank feeds from most UK banks via Open Banking and lists connections to HMRC for MTD VAT. UK-based support accountants can be contacted online or by phone. Plans include a free option and paid options such as Sole trader at £10.00 per month and Limited company at £33.00 per month. Smart Capture includes up to 10 receipts and bills per month as standard; an add-on removes that limit.

FreeAgent combines accounting, invoicing, tax features and mobile tools for small businesses and finance professionals. Review the Smart Capture allowance and cash-basis restrictions against your needs.

FreeAgent is aimed at small businesses, accountants and bookkeepers handling accounts, invoicing, expenses or tax administration. Its iOS and Android apps also support expense recording, time tracking and invoice management.

Overview

FreeAgent brings bookkeeping, invoicing, tax workflows and business reporting together for small businesses, accountants and bookkeepers. It is a strong fit for UK-focused businesses that want routine finance work in one place, but cash-basis accounting rules out Stock and Payroll.

Key features

Accounts and invoicing

FreeAgent builds real-time accounts from bank statements, invoices and expenses, then provides Profit and Loss, Balance Sheet and Trial Balance reports. Open Banking feeds from most UK banks can reduce manual transaction entry, though FreeAgent does not provide detailed support for third-party integrations developed outside its service.

Recurring invoices, estimates that convert into invoices and automated late-payment reminders cover common billing needs. Stripe and PayPal payments let customers pay invoices online. The standard Smart Capture allowance is only 10 receipts and bills per month across all businesses; firms processing more will need the Unlimited add-on or another way to handle the excess.

Tax, payroll and mobile

FreeAgent can generate MTD-compatible VAT returns and file them directly with HMRC. It also offers Self Assessment and end-of-year filing for relevant business types. Payroll calculates PAYE and National Insurance and can submit Real Time Information to HMRC, but businesses choosing cash-basis accounting lose access to both Payroll and Stock.

The iOS and Android apps support expense recording, time tracking, invoice management and bank transaction reconciliation. Those are useful core tasks for owners and finance professionals handling accounts away from a desk. FreeAgent says data in transit uses HTTPS and TLS 1.2, stored data uses 256-bit AES encryption, and its data centres hold ISO 27001, 27017 and 27018 certifications; it also states that it is Cyber Essentials Plus certified. UK-based support accountants can be reached online or by phone.

Pricing

Pricing varies by business type, and several monthly prices are promotional rather than permanent. The Sole trader plan is £10.00 per month billed monthly, while Partnership or LLP costs £19.00 per month and Limited company costs £33.00 per month, each billed monthly. A separate set of offers cuts the first six months by 50%: Landlord is £5.00 per month before returning to £10/month, Sole trader is £9.50 before £19/month, Partnership or LLP is £13.50 before £27/month, and Limited company is £16.50 before £33/month. These prices exclude 20% VAT and optional add-ons may cost extra.

Annual offers are listed for Landlord at £50.00 per year and Sole trader at £95.00 per year, each half price for the first year before returning to £100/year and £190/year respectively; prices exclude 20% VAT and optional add-ons may cost extra. The free plan is £0.00 per free, billed monthly, but its business-type eligibility and feature caps are not given. A separate bank-account-funded account is £0.00 per free while eligible conditions remain met: the customer must retain a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or maintain a Mettle account with at least one transaction per month. Optional add-ons may be chargeable.

Smart Capture Unlimited costs £5.00 per month, billed monthly, excluding 20% VAT; it removes the standard limit of 10 receipts and bills per month. A 30-day trial is also offered. Choose a paid plan according to business type, and weigh the post-offer renewal price against the initial discount rather than budgeting on the promotional rate.

Platforms

FreeAgent runs on the web and has apps for Android and iOS. The mobile apps cover selected accounting tasks, including expenses, time, invoices and reconciliation.

Who it's for

FreeAgent suits small UK businesses and the accountants or bookkeepers who support them, particularly where invoicing, tax filing and reporting need to sit alongside bookkeeping. It is less suitable for businesses that need Stock or Payroll while using cash-basis accounting, or that process more than 10 receipts and bills monthly without adding the paid Smart Capture option.

Pros and cons

• Pros: Invoicing spans recurring bills, estimates, reminders and Stripe or PayPal payments, reducing the need to assemble a separate billing workflow.
• Pros: Direct HMRC VAT filing, payroll submissions and mobile reconciliation support practical UK business administration.
• Pros: UK-based support accountants are available online or by phone.
• Cons: Smart Capture is capped at 10 receipts and bills monthly unless the £5.00-per-month add-on is purchased, and its price excludes VAT.
• Cons: Cash-basis accounting excludes Stock and Payroll, which may be a deal-breaker for businesses relying on either.
• Cons: Third-party integration support is limited because external integrations are developed and supported outside FreeAgent.

Alternatives

For broader accounting comparisons, browse SaaS Accounting Software or Bookkeeping Software; freelance billers can also compare Freelance Invoicing Software. Gym and salon operators can review Gym Accounting Software and Salon Accounting Software.

Zoho Books is a reasonable alternative for solopreneurs and micro businesses that can stay below $50K in annual revenue: its free plan is indefinite under that cap and includes one user and one account. FreshBooks is a paid alternative with a free trial and Lite, Plus and Premium plans, but its listed prices are in USD rather than FreeAgent's GBP. Odoo Accounting may suit readers who want a free plan and web, mobile or self-hosted deployment; its free offer is One App Free.

Holded API is a paid alternative whose Plus plan includes 250 invoices per year, one connected bank and one user. Sage Accounting is another paid option, with a Standard plan that includes three users and 30 approved captures, then charges £0.20 per additional approved capture. MYOB Business is worth comparing for readers considering an annual Lite plan or a Pro plan with unlimited bank accounts. QuickBooks Time is a paid alternative focused on time, with Premium and Elite plans each including one admin. Numarics Accounting is another paid option with a free trial.

Verdict

Choose FreeAgent if you run a UK small business and want invoicing, accounts, mobile bookkeeping and HMRC workflows in one product, with phone or online access to UK-based support accountants. Look elsewhere if cash-basis accounting must coexist with Stock or Payroll, or if the recurring Smart Capture cap and paid add-on do not suit your receipt volume.