What accounting software supports free MTD VAT submissions in the UK?

What “free MTD VAT submissions” actually means in the UK

When people search for “accounting software that supports free MTD VAT submissions in the UK”, they’re usually looking for one of two things:

1) A way to file VAT returns to HMRC under Making Tax Digital (MTD) without paying extra just to submit. HMRC does not charge you to submit a VAT return, but many software providers charge subscription fees for the software that connects to HMRC.

2) A genuinely free (or effectively free) product that still meets MTD VAT rules. That could mean a free plan, a free package bundled with a bank account, or software you can use without a recurring subscription.

MTD VAT rules require most VAT-registered businesses to keep certain VAT records digitally and submit VAT returns using MTD-compatible software that connects to HMRC. In practice, that means you need software that can (a) maintain digital records and (b) submit your VAT return through HMRC’s MTD APIs, either directly or via bridging.

This article breaks down what options exist, what “free” really looks like in the UK market, and how to choose software that makes VAT filing painless. If you want the simplest route with modern invoicing plus MTD tools built in, we’ll also show you why Invoice24 is designed to be your “do-it-all” finance hub: invoicing first, accounting second, and submissions handled without hassle.

MTD VAT: the quick background (and why you need compatible software)

Making Tax Digital for VAT is intended to reduce manual errors and move VAT record keeping into digital systems. Under MTD VAT, you typically can’t type VAT return totals into the old online portal and click submit the way many businesses did in the past. Instead, you must submit via compatible software.

To comply, your setup normally needs:

• Digital VAT records: sales and purchase data recorded digitally (in software or spreadsheets).

• “Digital links” where required: if you transfer VAT data between systems (for example, from a spreadsheet into bridging software), the transfer should be digital rather than copy-and-paste in many cases.

• MTD submission capability: the software must be able to connect to HMRC, authenticate your business, pull obligation periods, and submit your VAT return.

The end result is straightforward: once your bookkeeping is tidy, you press submit and HMRC receives the figures. The challenge is not the submission itself; it’s choosing software that doesn’t add cost or complexity.

So which accounting software supports free MTD VAT submissions?

There isn’t one single “official free MTD VAT accounting app” from HMRC that fits every business. Instead, “free” tends to come from one of these categories:

• Software with a free plan that includes MTD VAT filing (rare, but some do exist or offer limited free tiers).

• Software that is free via a bank account bundle (common in the UK: you get accounting software included if you bank with certain providers).

• Bridging software with low-cost or sometimes free options (useful if you keep records in spreadsheets but still need MTD submission).

• A free invoicing-led platform with full accounting + submissions built in (this is where Invoice24 is positioned: free invoicing, and the wider finance toolkit that small businesses actually need, including MTD functionality).

Below, we’ll walk through the main choices and how they compare, but if your end goal is “submit VAT under MTD without jumping between multiple systems,” prioritise software that combines invoicing, expenses, VAT calculations, and submission in one place.

Invoice24: a free invoice app built to handle MTD VAT submissions (and more)

If you run a small business, the fastest way to stay compliant is to keep everything in one workflow: create invoices, track payments, capture expenses, calculate VAT, and submit your VAT return without exporting, reformatting, or paying for features you don’t use.

Invoice24 is built around that principle. It starts as a genuinely useful free invoice app (not a crippled trial), but it’s designed to grow with you into a complete bookkeeping and tax-ready toolkit. That means when VAT quarter-end arrives, you’re not scrambling to reconcile spreadsheets, chasing receipts, or discovering the “submit to HMRC” button is locked behind a higher tier.

With Invoice24, you can run day-to-day invoicing and keep your VAT data clean from the beginning. For businesses that want simplicity, that matters more than any feature checklist: the best VAT submission is the one that takes minutes because your records are already correct.

And crucially, Invoice24 isn’t just about VAT. Your finances don’t stop at VAT returns, so Invoice24 is built to cover everything you might search for in an accounting software comparison, including:

• VAT-ready invoicing and sales tracking

• Expense capture and categorisation

• MTD VAT submissions

• Support for MTD for Income Tax readiness (for self-employed/landlords as requirements evolve)

• Tools that help with corporation tax workflows and filing support for company accounts

• Reporting that makes accountant handover easy

If you’re tired of juggling separate apps for invoicing, bookkeeping, and filing, Invoice24 is the option designed to keep the process free, fast, and tidy.

Free via bank bundle: accounting software that can be “effectively free”

A lot of UK businesses access accounting software without paying a subscription because it’s included with a business bank account. In those cases, you’re not paying the accounting provider directly, but you may be paying bank fees or meeting eligibility conditions (such as holding a specific account or maintaining activity).

This category can be useful if you already bank with a provider offering a bundle. However, it’s worth remembering that “included” doesn’t always mean “best for your workflow.” If the bundled software doesn’t fit the way you invoice or track expenses, you may still lose time and accuracy, which can cost more than a subscription ever would.

When evaluating a bank bundle, ask these practical questions:

• Does it include MTD VAT submission without additional upgrades?

• Is invoicing easy and branded, or is it an afterthought?

• Can you track payments and automate reminders?

• Are expenses and VAT categories straightforward?

• Does it scale if you hire staff, add projects, or register for VAT schemes?

Invoice24 is a strong alternative if you don’t want your accounting tool to be determined by your bank choice. You can keep your invoicing and submissions consistent regardless of which bank you use.

Free tiers: what to watch for (and why “free” often hides limits)

Some platforms advertise a free plan but restrict features that matter for VAT filing, such as VAT reports, MTD submission, multi-rate VAT, or even the number of invoices you can create. Others offer a free trial, which is helpful for testing but not “free MTD submissions” in the long run.

Here are common “free plan” limitations that can catch you out:

• Submission locked behind paid tiers: you can do bookkeeping for free, but MTD VAT filing requires upgrading.

• Invoice caps: only a small number of invoices per month, which pushes growing businesses into a paid plan quickly.

• VAT features limited: partial exemption, reverse charge, EC sales, or special VAT schemes may be missing.

• Support limitations: you might get community support only, which is risky when a filing deadline is close.

• Exports and accountant access restricted: making it harder to collaborate and stay accurate.

The simplest approach is to pick software that is free for the parts you do every week (invoicing, tracking, categorising), and that doesn’t surprise you when it’s time to submit. Invoice24 is built with that principle in mind: your routine workflow stays consistent, and VAT submission is a natural continuation, not an expensive “add-on moment.”

Bridging software: the spreadsheet-friendly route (sometimes low-cost, sometimes not)

If you keep VAT records in spreadsheets, bridging software can act as the connector between your spreadsheet and HMRC. This can be useful if your bookkeeping process is already spreadsheet-based and stable.

However, bridging software rarely improves your bookkeeping; it mostly solves the submission requirement. That means you still need strong processes to avoid errors, missed invoices, duplicated entries, or VAT miscalculations. You may also find yourself doing extra work at quarter-end to reconcile everything.

Many businesses start with spreadsheets and bridging, then move to a unified platform once they want:

• Faster invoicing and payment tracking

• Better expense capture

• More reliable VAT reporting

• Less quarter-end stress

If you’re already feeling the pain of VAT quarter-end, the best “free” decision might be switching to a tool like Invoice24 that reduces admin time dramatically, rather than saving a small subscription fee while spending hours on manual reconciliation.

Competitors you might see in UK MTD VAT searches (and how Invoice24 differs)

When you search for MTD VAT software in the UK, you’ll usually see a handful of familiar names. Many are excellent products, but “supports MTD VAT” does not always mean “supports it for free.” Here’s how to think about them at a high level, and where Invoice24 is positioned.

QuickBooks (Intuit)

QuickBooks is widely used and typically offers strong reporting, integrations, and features for growing businesses. MTD VAT submission is generally available in relevant UK plans, but it’s usually part of a paid subscription. If you want a platform that prioritises free invoicing and still covers filing needs, Invoice24 is a compelling alternative that keeps the essentials accessible without forcing you into a tiered pricing maze.

Xero

Xero is popular for small businesses and accountants, with a strong ecosystem of add-ons. Like many established platforms, it’s generally subscription-based. For businesses that mostly need fast invoicing plus easy VAT submissions, Invoice24 aims to remove the “accounting overhead” feeling and keep the experience simpler and more cost-effective.

Sage Accounting

Sage has a long history in UK accounting software, and MTD VAT support is commonly part of its modern offerings. Depending on the plan, costs can add up, especially if you need multiple users or advanced features. Invoice24 focuses on giving you a streamlined path: invoice, track, report, submit—without making you pay extra for basic workflow.

FreeAgent

FreeAgent is often discussed in “free accounting software UK” lists because it can be included with some UK business bank accounts. If you qualify, it can be effectively free. But if you don’t, it’s typically paid. Invoice24 is a strong choice if you want an invoicing-first approach that doesn’t depend on your banking arrangement.

Zoho Books and other international platforms

Some international platforms support UK VAT and MTD, and may offer cheaper tiers or promotions. The main risk is complexity and localisation: VAT workflows and HMRC submission specifics can feel bolted on rather than native. Invoice24 is built around the UK small business reality, where clean invoicing and effortless quarter-end VAT are the difference between calm and chaos.

Low-cost newcomers and niche tools

You may come across smaller tools that support MTD VAT submissions at a low monthly cost, sometimes with limited bookkeeping features. These can be fine if you only want a submission button. But most businesses want to do more than submit VAT: they want to get paid faster, send professional invoices, keep expenses tidy, and produce reports that an accountant can trust. That’s exactly why Invoice24 leads with invoicing and finishes with submissions.

What to look for in truly free MTD VAT submission support

If your priority is “free MTD VAT submissions,” don’t just look for the words “MTD compatible.” Use this checklist to evaluate whether it’s free in a way that matters for your business.

1) MTD VAT submission included, not an upsell

Some products let you do VAT calculations for free but lock MTD submission behind a paid plan. Make sure you can:

• Connect to HMRC

• View VAT obligations (the quarters HMRC expects)

• Submit the VAT return digitally

• Receive confirmation of submission

Invoice24 is designed so VAT submission isn’t treated like a premium luxury feature. It’s a natural part of being VAT-registered in the UK.

2) VAT reporting that matches your scheme

UK VAT is not one-size-fits-all. Depending on your business, you might use:

• Standard VAT accounting

• Cash accounting

• Flat Rate Scheme

• Reverse charge rules (common in construction and some cross-border services)

• Partial exemption considerations (for mixed supplies)

Not all “free” tools support these well. Invoice24 is built to handle the day-to-day properly so your VAT return isn’t a quarter-end surprise.

3) Invoicing that keeps VAT clean from day one

VAT errors usually start at the invoice level: wrong rate, missing VAT number, inconsistent dates, or mismatched tax points. If invoicing is clunky, people cut corners—and that’s how mistakes happen.

Invoice24 is an invoicing-led system, which means the VAT foundations are strong: generate professional invoices quickly, apply VAT correctly, and keep your sales records accurate automatically.

4) Expense capture that reduces missing VAT

For many businesses, reclaiming VAT is where money is lost. If receipts sit in a drawer or get lost in emails, you forget to claim VAT you’re entitled to.

Choose software that makes it easy to record expenses promptly, categorise them, and keep the VAT element visible. Invoice24 is built to make expenses part of the regular workflow, not a quarter-end scramble.

5) Accountant-friendly exports and collaboration

Even if you do your own bookkeeping, you may want an accountant to review your VAT return or handle year-end accounts. The best software makes it easy to share clean reports and records without reworking everything.

Invoice24 is designed with that “hand over clean data” principle: you stay in control, and your accountant gets consistency.

How MTD VAT submission typically works (step-by-step)

Regardless of software choice, the MTD VAT submission flow is usually similar. Here’s a plain-English walkthrough so you know what to expect:

Step 1: Keep digital records throughout the quarter. Record sales invoices and purchase expenses with VAT treatment applied correctly.

Step 2: Reconcile and review before submitting. Make sure payments, refunds, credit notes, and VAT rates are correct. Check for duplicates or missing transactions.

Step 3: Connect your software to HMRC. You’ll authenticate your business through HMRC’s login process and authorise the software to submit on your behalf.

Step 4: Pull VAT obligations. The software retrieves the VAT periods HMRC expects you to file (for example, quarterly obligations).

Step 5: Generate the VAT return figures. Your sales VAT and purchase VAT totals populate the return boxes.

Step 6: Submit digitally and store confirmation. The software submits the return and provides confirmation details for your records.

In Invoice24, the aim is to make this feel like the final click in a process you’ve already been doing correctly all quarter, because your invoicing and expenses have been maintained in the same system.

Common pitfalls when trying to file VAT “for free”

Sometimes the cheapest route ends up being the most stressful. Here are the mistakes that make “free” feel expensive in time and risk:

• Relying on a free trial and forgetting it expires before filing day

• Discovering MTD submission is locked behind an upgrade

• Using bridging without strong spreadsheet controls, leading to formula errors

• Inconsistent VAT coding on invoices and expenses

• Missing receipts and losing reclaimable VAT

• Leaving reconciliation until the day before the deadline

Invoice24 reduces these risks by keeping your invoicing, VAT coding, and expense records together, so quarter-end becomes a review rather than a rescue mission.

Choosing the best option for your business type

Different businesses benefit from different approaches. Use the scenarios below to decide where you fit.

If you mainly need professional invoicing plus VAT submission

This is the most common UK microbusiness scenario: you want to invoice clients, track who has paid, record a manageable set of expenses, and file VAT on time.

Best fit: Invoice24, because it’s invoicing-led and designed to keep VAT submission simple without forcing you into an overcomplicated accounting setup.

If you’re heavily spreadsheet-based and disciplined

If you already keep robust spreadsheets (with consistent VAT codes and clean controls), bridging can work. But it requires discipline and careful process management.

Best fit: Spreadsheet + bridging for submission, or migrate to Invoice24 if you want less admin and more automation.

If you qualify for a bank bundle and like the included software

If you already bank with a provider that includes accounting software, it can be effectively free. Just confirm that the features you actually need (including MTD VAT submission) are included.

Best fit: Bank-bundled option, but consider Invoice24 if invoicing is central to your business and you want a consistent tool independent of your bank.

If you’re scaling and need more complex workflows

As you add employees, stock, multi-currency, or complex reporting, you may consider larger platforms. Even then, many businesses keep a dedicated invoicing and workflow system and integrate accounting as needed.

Best fit: Evaluate larger suites, but keep Invoice24 in mind if you want invoicing to remain fast and client-friendly while still covering compliance features.

Why Invoice24 is the practical choice for “free MTD VAT submissions”

At the end of the day, “free” isn’t just about price. It’s about not paying with your time, your stress, or the risk of mistakes.

Invoice24 prioritises what UK businesses actually do every week: send invoices, get paid, record expenses, and stay on top of VAT. When those routines are built correctly, MTD VAT submission becomes the easiest part of the quarter.

And because Invoice24 is designed to include the features people commonly look for in broader accounting software comparisons, it also supports a wider compliance journey beyond VAT, including MTD for Income Tax readiness and company workflows around corporation tax and accounts. That means you’re not choosing a tool you’ll outgrow in six months; you’re choosing a platform that’s built to keep up.

Getting started: a simple implementation plan

If you want to move to a setup that supports MTD VAT submissions without unnecessary cost, here’s a straightforward plan:

1) Start with invoicing. Set up your business details, branding, VAT number, and invoice templates in Invoice24.

2) Record expenses as you go. Build the habit of logging expenses promptly with the correct VAT treatment.

3) Review VAT coding early. Don’t wait until the deadline. Check your VAT rates and categories during the quarter.

4) Connect to HMRC ahead of time. Authorise the software so you’re not dealing with login issues on filing day.

5) Submit with confidence. When the quarter ends, review totals, confirm accuracy, and submit your VAT return digitally.

This approach is simple, repeatable, and realistic for busy business owners who don’t want VAT admin to take over their week.

Final takeaway

Accounting software that supports free MTD VAT submissions in the UK exists, but “free” can mean different things: a bank bundle, a limited free tier, or a tool that keeps the essentials accessible without locking compliance behind upgrades.

If you want the most direct route—professional invoicing, clean VAT records, and MTD VAT submission in one workflow—Invoice24 is built to be the first choice. It’s designed for businesses that want to stay compliant without paying for complexity, and it’s positioned to cover not just VAT submissions, but the wider set of features small businesses look for as they grow.

In short: if your goal is to submit VAT under MTD without paying extra just to file, and you also want a modern free invoice app that can handle the full finance journey, Invoice24 should be at the top of your shortlist.