FreeAgent for Builders and Tradespeople: How to Get MTD Bookkeeping Software for Free

If you’re a self-employed builder, plumber, electrician, carpenter or CIS subcontractor, you may be wondering how much Making Tax Digital (MTD) bookkeeping software is going to cost you.

The good news is that FreeAgent accounting software can be available at no additional subscription cost when you have a qualifying business bank account.

For builders and tradespeople who want to keep things simple, this could be an affordable way to manage digital bookkeeping and prepare for Making Tax Digital for Income Tax.

At MTD Trade Books, we specialise in helping self-employed builders and tradespeople keep their bookkeeping organised using FreeAgent. Our introductory bookkeeping service starts at just £20 per month, with catch-up bookkeeping available from £99 for eligible straightforward cases.

What Is FreeAgent and How Does It Work for Builders?

FreeAgent is cloud-based accounting software designed to help small businesses, sole traders and self-employed people manage their financial records.

Instead of keeping everything on paper or trying to work out your income and expenses at the end of the tax year, FreeAgent helps you organise your bookkeeping throughout the year.

For a self-employed builder or tradesperson, FreeAgent can help you:

• Record payments received from customers and contractors.
• Keep track of business expenses, including tools, materials and fuel.
• Connect a business bank account to import transactions.
• Create and manage invoices.
• Record relevant Construction Industry Scheme (CIS) deductions.
• Keep digital records for Making Tax Digital.
• Use supported features to submit information to HMRC.

This can make it easier to understand how your business is performing and reduce the amount of paperwork you have to deal with.

How Can Builders Get FreeAgent for Free?

One of the biggest advantages of FreeAgent is that you may not have to pay a separate software subscription.

FreeAgent is available without a separate subscription charge to eligible customers with qualifying business accounts from:

• NatWest
• Royal Bank of Scotland
• Mettle
• Ulster Bank

These offers are subject to the bank’s and FreeAgent’s eligibility requirements. Optional extras may cost more.

For example, Mettle-funded FreeAgent accounts generally require at least one transaction each month through the Mettle account. Other eligibility conditions may apply when working with a bookkeeper or accountant.

You should always check the current terms before choosing or switching business bank accounts.

Important: FreeAgent being free through an eligible bank account does not mean that your bank provides a free professional bookkeeping service. The software and the bookkeeping work are two separate things.

You can read the current eligibility information on the official FreeAgent website.

Do You Need a Separate Business Bank Account for FreeAgent?

Having a dedicated business bank account can make bookkeeping much easier.

Although sole traders are not generally required to have a separate business bank account, keeping business and personal spending apart helps you see exactly what’s happening with your business finances.

For example, imagine you’re a self-employed carpenter.

During one week you might receive:

• £1,200 from a building contractor.
• £450 for a private carpentry job.
• £300 for a small repair job.

You might also pay for timber, screws, fuel, tools and business insurance.

If your business bank account is connected to FreeAgent, these transactions can appear automatically in the software, ready to be checked and categorised.

That saves time compared with entering every payment manually.

However, the transactions still need to be checked carefully. A bank feed doesn’t automatically know whether every payment is business-related or how it should be treated for tax purposes.

Is FreeAgent Suitable for CIS Subcontractors?

Yes. FreeAgent includes functionality to help record Construction Industry Scheme deductions.

This is particularly useful for self-employed builders, carpenters, plumbers, electricians and other subcontractors who work for construction contractors.

Under CIS, contractors may deduct tax from payments before paying the subcontractor.

For example:

• Gross labour payment: £1,000
• CIS tax deducted: £200
• Amount received in your bank: £800

Your bookkeeping needs to reflect the full £1,000 gross income and the £200 CIS deduction separately.

Simply recording the £800 bank receipt as your total earnings would not give the complete picture.

CIS deductions are taken into account when calculating your final tax liability.

At MTD Trade Books, we understand how CIS payments work because of our extensive experience in the building industry.

For a more detailed explanation, read our guide:

Do CIS Subcontractors Have to Use Making Tax Digital?

Will Builders Need FreeAgent for Making Tax Digital in 2027?

Making Tax Digital for Income Tax is being introduced gradually.

The qualifying income thresholds are:

• 6 April 2026: Qualifying income over £50,000.
• 6 April 2027: Qualifying income over £30,000.
• 6 April 2028: Qualifying income over £20,000.

Qualifying income generally means your total gross income from self-employment and property, before deducting business expenses or tax.

For example, a self-employed builder with £40,000 in qualifying income for the 2025/26 tax year would generally fall within Making Tax Digital from April 2027, unless an exemption or other exception applies.

Builders who fall within the rules will need to maintain digital records and send quarterly updates using compatible software.

FreeAgent is one option for managing those requirements.

For more information, see our article:

Making Tax Digital for Builders and Tradespeople: A Simple Guide

Can FreeAgent Submit MTD Quarterly Updates to HMRC?

FreeAgent offers Making Tax Digital functionality, but you must use the appropriate features for your tax obligations.

Under Making Tax Digital for Income Tax, eligible self-employed people must maintain digital records and send quarterly income and expense updates to HMRC.

For those using standard tax-year quarters, the usual deadlines are:

• 7 August — first quarterly update.
• 7 November — second quarterly update.
• 7 February — third quarterly update.
• 7 May — fourth quarterly update.

These updates are not the same as completing your annual tax return.

You still need to deal with your end-of-year tax obligations and any required adjustments.

The important thing is to keep your records up to date throughout the year rather than leave everything until a deadline approaches.

We explain this in more detail here:

MTD Quarterly Updates for Builders: What Do You Need to Submit?

Is FreeAgent Difficult for Builders to Use?

FreeAgent is designed to make bookkeeping more manageable, but there is still a learning curve if you’ve never used accounting software before.

You’ll need to understand how to record different types of income and expenses, deal with CIS deductions where relevant and check that your bookkeeping records are accurate.

For example, buying materials for a customer’s job may need to be treated differently from buying an item for personal use.

You may also need to distinguish between everyday business expenses and purchases of equipment that require different tax treatment.

If you’ve spent years working on building sites rather than in an office, you might understandably prefer to leave the bookkeeping to somebody else.

That’s where having an experienced bookkeeper can help.

Can Someone Manage My FreeAgent Bookkeeping for Me?

Yes. You can use FreeAgent while having a bookkeeper help maintain your records.

At MTD Trade Books, we focus on straightforward self-employed businesses, especially builders, tradespeople and CIS subcontractors.

With over 30 years of experience in the building trade, we understand the practical side of running a construction business.

We know about contractor payments, CIS deductions, materials, tools, fuel and the everyday expenses that tradespeople deal with.

Our aim is to help keep your bookkeeping organised without making the process unnecessarily complicated.

You concentrate on your work while we help with the bookkeeping.

How Much Does FreeAgent Bookkeeping Cost with MTD Trade Books?

We offer straightforward introductory pricing for eligible sole traders with relatively simple bookkeeping requirements.

£20 Per Month — Ongoing Bookkeeping

Our ongoing bookkeeping service starts at £20 per month.

This is designed for eligible straightforward self-employed businesses using FreeAgent, helping keep their bookkeeping records organised and up to date.

£99 — Catch-Up Bookkeeping

If you’ve fallen behind with your bookkeeping, we offer a £99 catch-up service for eligible straightforward cases.

This would typically cover organising records for one or two missed quarterly periods, depending on the amount and complexity of the work.

Additional work, more complicated bookkeeping and services outside the agreed scope may require a separate quotation.

For more details about our pricing, read:

MTD Bookkeeping for Builders: Affordable Making Tax Digital Help from £20 a Month

How Should Self-Employed Builders Prepare for Making Tax Digital?

If you’re expecting to come within Making Tax Digital from April 2027, it’s worth getting organised before the new tax year begins.

Here are six practical steps:

• Check your qualifying income. Establish whether the MTD rules will apply to you and when.
• Review your business bank account. Consider whether a qualifying account could provide FreeAgent without a separate software subscription.
• Choose suitable bookkeeping software. Make sure it supports the MTD requirements relevant to your circumstances.
• Organise your existing records. Gather details of your income, expenses, invoices and CIS deductions.
• Understand the quarterly deadlines. Know when updates will need to be submitted.
• Get help if you need it. A bookkeeper can help you keep your records organised and avoid a last-minute rush.

We’ve also written a practical preparation guide:

How to Get Ready for Making Tax Digital for Income Tax if You’re Self-Employed

Why Choose MTD Trade Books?

MTD Trade Books was created to provide straightforward, affordable bookkeeping support for self-employed people working in the building industry.

We understand that most tradespeople don’t want to spend their evenings sorting through receipts, checking bank transactions and worrying about bookkeeping deadlines.

Our service is particularly suited to straightforward sole traders and CIS subcontractors who want help keeping their records organised.

We focus on:

• Affordable monthly bookkeeping.
• FreeAgent software.
• Straightforward self-employed businesses.
• CIS subcontractor bookkeeping.
• Catch-up bookkeeping for eligible cases.
• Practical support from someone who understands the building trade.

We’re based in Uxbridge and can help suitable clients remotely.

Get FreeAgent Bookkeeping Help from £20 a Month

If you’re a self-employed builder, plumber, electrician, carpenter or CIS subcontractor, you don’t necessarily need to spend a fortune on accounting software or bookkeeping.

With a qualifying business bank account, FreeAgent may be available without a separate software subscription.

And with MTD Trade Books, you can get straightforward ongoing bookkeeping support from £20 per month, with eligible catch-up bookkeeping from £99.

Visit MTD Trade Books to find out more and get in touch.

MTD Trade Books — affordable, straightforward bookkeeping for self-employed builders and tradespeople.