Free MTD software for THP clients

If you are a regular reader of this blog, you’ll know that Making Tax Digital for Income Tax becomes (MTD ITSA) compulsory for some taxpayers in April 2026. To help you prepare, you’ll be glad to know that we now offer our clients free MTD software that’s approved for MTD ITSA.

The two MTD software packages that we offer clients at no extra charge are FreeAgent and Hammock. Both have now joined the official list of MTD ITSA compliant software packages. We’ll look at both in more detail shortly. However, FreeAgent is a good fit for SMEs and sole traders, while Hammock is designed for buy-to-let landlords.

What is MTD ITSA?

Making Tax Digital is an initiative that is changing the way we submit tax returns. It replaces a system that includes paper tax returns with a fully digital one. This means almost all businesses, self-employed people and landlords will have to use approved MTD software to make various tax returns.

MTD for VAT is already compulsory. MTD ITSA becomes compulsory in April 2026 for those with qualifying income of over £50,000. In April 2027, it will also apply to people with a qualifying income of over £30,000.

Currently, you have to submit your tax return once per year. However, under MTD ITSA, you’ll need to make quarterly returns. You also need to submit an End of Period Statement, which lets you make adjustments (such as to capital allowances and losses). You can also declare other income and capital gains via a Finalisation Statement. To learn more about MTD ITSA, see our post on Making Tax Digital for landlords and the self-employed.

MTD for Corporation Tax will not be introduced before April 2026. We aim to offer our clients compliant software ahead of its introduction.

What is FreeAgent MTD software?

FreeAgent is very popular and easy-to-use cloud accounting software. You can use it via any web browser. It also has a handy mobile app, meaning you can scan receipts on the go. The software links to your business bank account, allowing you to allocate most transactions in a single click.

THP is an official FreeAgent partner. We love this software so much that we offer it free to small businesses and self-employed clients. All you need to do to get this MTD software at no extra cost is to use THP to prepare your Self-assessment tax returns, VAT returns, corporation tax returns (or any combination of the above).

You can book a call with us to discuss FreeAgent by following this link.

What is Hammock?

Hammock is also an excellent MTD software package. It has been designed with the needs of buy-to-let landlords in mind. You can connect it to multiple bank accounts, automatically reconcile rent payments and property expenses, and see your tax liability calculated in real time. It can also give you handy insights such as loan-to-value ratio, rental yields, arrears balances and occupancy rates. It’ll even give you reminders to renew insurance policies and certificates.

We offer Hammock free to landlords who sign up to our Landlord Software Platinum Service. To book a call to find out more about this service, follow this link.

Why get free MTD software now?

MTD ITSA becomes compulsory for some taxpayers quite soon. If you begin using MTD software now, it’ll make the transition a lot simpler for you. In addition, both FreeAgent and Hammock free up a lot of your time by automating so many functions. If you’re still working from spreadsheets, you’ll be pleasantly surprised how much faster you can get your accounts done!

Remember, we only offer free MTD software to our clients. So if your current accountant doesn’t offer you this service, it’s time to think about switching to THP. Give us a call today and we’ll be delighted to help you.