How to Get FreeAgent Free for MTD Through NatWest and Mettle
Last updated: February 2026
Making Tax Digital for Income Tax starts on 6 April 2026, and software is not optional. Every sole trader and landlord above the income thresholds will need HMRC-recognised software to file quarterly updates. The most common question I hear is how to keep costs down. The answer, for many, is FreeAgent through a NatWest or Mettle business account — full accounting software at no extra cost.
Full disclosure: Jack Ross is a Xero Gold Partner, and we use Xero for most of our clients. But this article is about the best genuinely free option, and I would rather you had accurate information than a sales pitch. If you want to see all the options side by side, use our full software comparison tool.
The short version
- Open a NatWest, Royal Bank of Scotland, Ulster Bank, or Mettle business current account (free for Mettle)
- Activate FreeAgent through your online banking — it is included at no extra cost
- FreeAgent is HMRC-recognised for both MTD ITSA and MTD for VAT
- FreeAgent normally costs £19 to £36 per month, so this saves £228 to £432 per year
- This is the most popular route to free MTD software in 2026
What is the NatWest/Mettle FreeAgent offer?
NatWest Group acquired FreeAgent in 2018. Since then, the bank has offered FreeAgent as a free benefit to all business current account holders across its brands: NatWest, Royal Bank of Scotland, and Ulster Bank. Mettle, NatWest’s digital-only business account, also qualifies.
This is not a trial. It is the full version of FreeAgent — invoicing, expense tracking, bank feeds, Self Assessment filing, and MTD submissions — included for as long as you hold the account. Mettle has no monthly fee and no minimum balance, making this the cheapest route to a full-featured MTD setup for sole traders and landlords.
This offer was verified as of February 2026. NatWest could change the terms at any time, so check NatWest.com for current availability before opening an account.
Step-by-step: how to get it
Step 1 — Open a Mettle account (easiest route)
Mettle is entirely digital — no branch visits, no monthly fees, no credit checks. Apply on the Mettle website or through the app with proof of identity, proof of address, and your business details. Most applications are approved within minutes. If you already have a NatWest, RBS, or Ulster Bank business account, skip this step.
Step 2 — Activate FreeAgent
Once your account is open, log in to Mettle and look for the FreeAgent activation link. You will be asked to create a FreeAgent account (or link an existing one). Activation is instant. You now have full access to FreeAgent at no charge.
Step 3 — Connect to HMRC for MTD
Inside FreeAgent, go to Settings > Connections > HMRC and authorise the connection using your Government Gateway credentials. This allows FreeAgent to submit quarterly updates and your Final Declaration directly to HMRC. You will need to have registered for MTD with HMRC before this step works.
Step 4 — Start recording transactions
Connect your bank feed (Mettle connects automatically), categorise your income and expenses, and you are ready to file. FreeAgent will prompt you when each quarterly update is due. Under MTD ITSA, you submit updates by the 7th of the second month after each quarter ends: 7 August, 7 November, 7 February, and 7 May. Your Final Declaration is due by 31 January following the end of the tax year.
Is FreeAgent good enough for MTD?
Yes. FreeAgent is on HMRC’s list of recognised software for both MTD for VAT and MTD for Income Tax. It handles everything the legislation requires:
- Quarterly updates — records income and expenses for each quarter and submits them digitally to HMRC
- Final Declaration — replaces the old Self Assessment tax return, due by 31 January
- Sole traders and landlords — supports both self-employment income and UK property income, which together make up qualifying income under MTD
- Bank feeds — automatic transaction imports from Mettle and most other UK banks
- Invoicing and expenses — built-in tools for sending invoices, photographing receipts, and tracking mileage
The main limitation is complexity. If you run multiple businesses through separate entities or need multi-currency support, FreeAgent may not be sufficient. For straightforward sole trader or landlord affairs, it does everything you need. For a broader look at what MTD will cost you, see our dedicated guide.
What is the catch?
There is no hidden fee, but there are conditions worth understanding:
- You must keep the bank account open. FreeAgent access is tied to your NatWest Group business account. Close the account and you lose free FreeAgent.
- You do not need to use it as your main account. There is no requirement to route all your business transactions through Mettle. You can keep your existing business bank account and use Mettle purely to access FreeAgent. Many sole traders do exactly this.
- Your data belongs to you. FreeAgent lets you export all your data at any time. If you later decide to move to a different software provider, you will not lose your records.
- The offer could change. NatWest has maintained this arrangement since 2018, but there is no contractual guarantee it will continue indefinitely. There is no indication it is ending.
Other ways to get free MTD software
FreeAgent through Mettle is the most feature-rich free option, but it is not the only one. For a complete list, see our guide to all free MTD software options. The highlights:
- HMRC’s own free filing service — basic quarterly submissions and Final Declaration. No invoicing, no bank feeds, no expense tracking. Suitable only if you keep meticulous records elsewhere.
- 123 Sheets — a spreadsheet-based approach that connects to HMRC via bridging software. Costs around £30 + VAT per year. Good for people who prefer working in spreadsheets.
- Free trials from paid providers — QuickBooks, Xero, and others offer 30–90 day trials. These are useful for testing before you commit, but they convert to paid subscriptions. Do not confuse a trial with a permanently free option.
Frequently asked questions
Do I need to switch my main bank account to NatWest?
No. You can open a Mettle account alongside your existing bank account and use it solely to access FreeAgent. There is no requirement to move your day-to-day banking. FreeAgent connects to most UK banks via Open Banking, so transactions from other accounts still appear automatically.
Can I use this for rental/property income too?
Yes. FreeAgent supports UK property income, which counts towards your qualifying income for MTD alongside self-employment income. Qualifying income is based on gross turnover (not profit), so if your combined self-employment and property income exceeds £50,000 from 6 April 2026, £30,000 from April 2027, or £20,000 or more from April 2028, you will need MTD-compatible software. FreeAgent covers both income types.
Is Mettle available for limited companies?
Yes, Mettle accounts are available to sole traders, freelancers, and limited companies. However, Making Tax Digital for Corporation Tax has no mandatory start date set, so limited companies do not currently need MTD software. The free FreeAgent offer through Mettle is most relevant for sole traders and landlords who face the 2026 MTD ITSA deadline.
What happens if NatWest withdraws the free FreeAgent offer?
You would need to either pay for FreeAgent directly (currently £19 to £36 per month depending on the plan) or switch to a different MTD-compatible provider. Your data would remain accessible in FreeAgent for export. This is a risk, but NatWest has maintained the offer since 2018 and it remains a central part of their business banking proposition.
