- Invoicing and Payments: Create, send, and track customizable invoices, automate recurring invoices, send reminders, and integrate with PayPal, Stripe, and GoCardless.
- Expense Tracking: Categorize expenses via bank feeds or manual entry, attach receipts via mobile app, and link to projects for billing.
- Bank Reconciliation: Import and categorize bank transactions automatically, reconcile payments, and monitor cash flow in real time.
- Tax Management: Automate VAT calculations, file Self Assessment returns, and view real-time tax estimates for HMRC compliance (UK-focused).
- Time Tracking: Track billable/non-billable hours with a timer or manual entry, assign to projects, and convert to invoices.
- Project Management: Track project income, expenses, and profitability, set budgets, assign tasks, and invoice based on project costs.
- Financial Reporting: Generate Profit and Loss, Balance Sheet, and Cash Flow reports with customizable date ranges.
- Client and Contact Management: Store client/contact details, track communications, and convert estimates to invoices.
- Mobile App: Manage invoicing, expenses, receipt capture, time tracking, and bank balances on iOS/Android apps.
- Integrations: Connect with 65+ apps (e.g., Zapier, Shopify) and major banks for seamless data integration.
- Multi-Currency Support: Invoice clients in a variety of currencies and languages, though bank feeds are GBP only.
- Dashboard and Insights: View real-time cash flow, invoices, expenses, and tax deadlines on a user-friendly dashboard.
- Payroll (UK-only): Run HMRC-recognized payroll, manage salaries, taxes, and benefits for free.
- Accounts Payable: Create, manage, and track bills, set recurring bills, and link to projects.
- Document Collaboration: Share invoices/documents with clients or accountants, attach files, and collaborate.
FreeAgent
FreeAgent simplifies small business accounting with automated bookkeeping, invoicing, expense tracking, and tax compliance.
Updated July 27, 2026
FreeAgent Overview
FreeAgent is a cloud-based accounting software designed for small businesses, freelancers, and contractors. It streamlines financial tasks with features like automated bookkeeping, invoicing, expense tracking, and tax compliance. Users can manage cash flow, create professional invoices, and monitor project profitability.
With real-time financial insights and integrations like bank feeds, FreeAgent simplifies accounting, saving time and ensuring accuracy for users without extensive accounting knowledge.
Key Features
Pricing
| Business Type | Monthly Plan | Annual Plan | Free Plan | Notes |
|---|---|---|---|---|
| Limited Company | £16.50/month (first 6 months, then £33/month) | £165/year (first year, then £330/year) | £0 (with a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or a Mettle account used at least once a month) | Includes 30-day free trial, excl. 20% VAT |
| Partnership / LLP | £13.50/month (first 6 months, then £27/month) | £135/year (first year, then £270/year) | £0 (with eligible bank account) | Includes 30-day free trial, excl. 20% VAT |
| Sole Trader | £9.50/month (first 6 months, then £19/month) | £95/year (first year, then £190/year) | £0 (with eligible bank account) | Includes 30-day free trial, excl. 20% VAT |
| Landlord | £5/month (first 6 months, then £10/month) | £50/year (first year, then £100/year) | £0 (with eligible bank account) | Includes 30-day free trial, excl. 20% VAT |
Pricing source: https://www.freeagent.com/pricing/
Pros
| Competitor | Pros of FreeAgent |
|---|---|
| QuickBooks Online | One plan per business type covers everything at a fixed rate: £33 a month plus VAT for a limited company, £27 for a partnership or LLP, £19 for a sole trader and £10 for a landlord, with 50% off the first six months. There are no feature tiers to climb, so invoicing, expenses, projects, reporting and tax all arrive on day one. QuickBooks UK spreads the same ground across £10 to £123 a month, which means upgrades as the business grows. |
| Xero | FreeAgent files Self Assessment straight to HMRC and runs monthly payroll with auto calculated PAYE and National Insurance inside the standard subscription. Xero UK charges £16 a month for Ignite up to £65 for Ultimate and sells payroll as a separate line. A 30 day free trial and the option to cancel at any time make the comparison easy to run on real data. |
| FreshBooks | FreshBooks UK is £16 a month for Lite, £30 for Plus and £42 for Premium, and every extra team member is another £8 a month. FreeAgent’s £19 sole trader plan includes time tracking, project profitability and estimates without per person charges; the only paid extras are unlimited Smart Capture at £5 a month and the Amazon UK connection at £6. Getting paid is covered through Tyl by NatWest, Stripe, GoCardless and PayPal. |
| Zoho Books | Zoho Books UK bills per organisation and adds £2.50 a month for each extra user, and its UK tax handling is a feature rather than the point of the product. FreeAgent is built around HMRC: MTD compatible VAT, real time tax estimates, Self Assessment filing and payroll submissions. For a UK microbusiness, that is the work the software is bought to do. |
| Wave | Wave prices in US and Canadian dollars only, $0 for Starter and $19 a month for Pro, and charges $11 a month for receipt scanning on the free plan. FreeAgent prices in sterling from £10 a month plus VAT for landlords, and it is free for as long as a customer keeps a NatWest, Royal Bank of Scotland or Ulster Bank business account, or holds a Mettle account with at least one transaction a month. Bank feeds, invoicing, expenses and HMRC filing all come in the one subscription. |
Cons
| Competitor | Cons of FreeAgent |
|---|---|
| QuickBooks Online | There is no cheaper stripped back tier: after the six month half price period a limited company pays £33 a month plus VAT whether it uses everything or not. QuickBooks UK sells Simple Start at £16 and a Sole Trader plan at £10, and its higher tiers add the deeper inventory and layered reporting FreeAgent does not carry. Payroll is included but limited to UK PAYE, so this is not a platform to grow into overseas. |
| Xero | Xero’s marketplace runs to thousands of connected apps; FreeAgent’s integration list is much shorter, and two useful extensions are chargeable, Smart Capture at £5 a month once you pass ten receipt files and the Amazon UK connection at £6. Bank feeds are GBP focused, which matters if a business banks in more than one currency. Teams that want to assemble a stack around their ledger will feel the ceiling. |
| FreshBooks | FreshBooks Lite is £16 a month against £33 for a FreeAgent limited company plan, and its Premium tier at £42 adds retainers and proposals for client heavy freelancers. FreeAgent covers more ground, and that breadth is exactly what makes it feel busier than a pure invoicing tool. Anyone who only sends invoices and tracks time is paying for tax machinery they will not touch. |
| Zoho Books | Zoho Books has a free UK tier and paid plans up to £199 a month with inventory, multi currency and workflow automation; FreeAgent has one plan per business type and no upgrade path beyond it. The tax features are UK only, so a business that starts trading elsewhere has to move. Complex stock or approval workflows are not part of the product. |
| Wave | Wave’s Starter plan is $0 with unlimited invoices and bookkeeping records; FreeAgent’s cheapest paid route is £10 a month plus VAT for landlords, or £19 for a sole trader, unless the NatWest, Royal Bank of Scotland, Ulster Bank or Mettle route applies. All FreeAgent prices exclude 20% VAT, so the real monthly figure is higher than the headline. Free is hard to argue with for a business doing only basic bookkeeping. |
Reviews
- Trustpilot Review (Rating: 4.5/5): FreeAgent gave one business owner “back the freedom to progress my business” after VAT returns went unfiled, and several reviewers highlighted “fantastic, knowledgeable” customer support that helped with VAT issues and first-time setup. Others called it “simple yet deceptively powerful” and better suited to their workflow than Xero or Crunch, though complaints included unexpected charges for NatWest customers, Companies House rejecting extracted micro-accounts, limits on free automated invoice recognition, and immediate loss of access after cancelling.
- Reddit r/ContractorUK: After four years using FreeAgent, one contractor felt accountants merely used the software to file taxes or exported its data into their own tools, while offering little proactive tax advice. The poster noted handling most of the transaction reviews personally and considered managing self-assessment, corporation tax, PAYE, and VAT directly since FreeAgent can assist with all of them.
- TechRadar Review (Rating: 4/5): The overview highlights FreeAgent as an attractive online bookkeeping solution that helps manage projects, send and track invoices, and organize expenses.
- G2 Review (Rating: 4.3/5): FreeAgent beats Xero and QuickBooks for some freelancers and consultants because the interface feels intuitive and “super fast,” and built-in tips help keep accounts on track. Business owners valued the dashboard overview, cash flow forecasting, and the ability to manage invoices, VAT, bank transactions, and profit and loss in one place, though requests included American Express integration, splitting invoices for deposits, and year-on-year cash flow comparisons.
- Software Advice Review (Rating: 4.5/5): Long-term users still rank FreeAgent among the best cloud accounting options and praise its stable pricing, invoicing tools, payment tracking, and expense management, yet report “hit-and-miss” support, currency changes, and bugs that cause inaccurate balances. Another reviewer found it easy to learn during a free trial with strong support, but noted UK-only free access and lack of tiered pricing, while a separate reviewer labeled it “seriously overpriced awkward software.”
