FreeAgent

Overview

FreeAgent is an accounting service for small businesses, accountants and bookkeepers, with web, iOS and Android access. It is strongest for UK businesses that want accounts, invoicing and tax workflows together; the choice is less compelling if cash-basis accounting is essential alongside stock or payroll.

Key features

Accounts and invoicing

FreeAgent builds real-time accounts from bank statements, invoices and expenses, with Profit and Loss, Balance Sheet and Trial Balance reports. Most UK banks can feed transactions through Open Banking, which can reduce manual reconciliation work. FreeAgent supports MTD-compatible VAT returns filed directly to HMRC, and lists Self Assessment and end-of-year filing for relevant business types.

Recurring invoices, estimates that convert into invoices, automated late-payment reminders and Stripe or PayPal payments give small firms a complete invoicing workflow. The trade-off is that Smart Capture covers only 10 receipts and bills per month as standard; businesses processing more need the paid Unlimited add-on.

Mobile, payroll and security

The iOS and Android apps cover expense recording, time tracking, invoice management and bank transaction reconciliation, useful for owners handling admin away from a desk. Payroll calculates PAYE and National Insurance and can submit Real Time Information to HMRC. Choosing cash-basis accounting excludes both Stock and Payroll, an important constraint for businesses that need those functions.

Data in transit uses HTTPS and TLS 1.2, and stored data uses 256-bit AES encryption. FreeAgent says its data centres hold ISO 27001, 27017 and 27018 certifications and that it is Cyber Essentials Plus certified. UK-based support accountants can be contacted online or by phone. FreeAgent does not provide detailed support for third-party integrations, which are developed and supported elsewhere.

Pricing

FreeAgent has a free plan, a 30-day trial and paid plans. Its listed plans include Free at £0 per month and paid monthly options of £10 per month for Sole trader, £19 per month for Partnership or LLP and £33 per month for Limited company. These plans are organized by business type; the free option suits users who qualify for its terms, while paid tiers match the listed business structures.

A separate bank-account-funded account is free while eligible conditions are met: retain a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or use a Mettle account with at least one transaction per month. Optional add-ons may still cost extra, so this is not an unconditional free plan.

Other listed monthly offers show Landlord at £5 per month, Sole trader at £9.50 per month, Partnership or LLP at £13.50 per month and Limited company at £16.50 per month. Each is 50% off for the first six months, then renews at respectively £10, £19, £27 and £33 per month; prices exclude 20% VAT. Annual offers include Landlord at £50 per year and Sole trader at £95 per year, each half-price for the first year before renewing at £100 and £190 per year respectively, excluding 20% VAT. Optional add-ons may cost extra.

Smart Capture Unlimited costs £5 per month, billed monthly, excluding 20% VAT; it removes the standard cap of 10 receipts and bills monthly. Check which offer and renewal price applies before choosing, since the listed monthly prices differ. The plans are shaped around business type, while the capture add-on matters most to firms with higher receipt volumes.

Platforms

FreeAgent runs on the web and has iOS and Android apps. The apps support expense recording, time tracking, invoice management and bank reconciliation.

Who it's for

FreeAgent suits small UK businesses and the accountants or bookkeepers who support them, particularly those wanting bank feeds, HMRC tax workflows, invoicing and payroll in one service. It is a weaker fit for a cash-basis business that needs stock or payroll, or for a business whose receipt volume makes the standard Smart Capture allowance inadequate without an add-on.

Pros and cons

• Pros: UK bank feeds and direct MTD VAT filing connect bookkeeping with tax administration.
• Pros: Recurring invoices, payment options, late reminders and mobile invoice management cover common billing tasks.
• Pros: Payroll includes PAYE, National Insurance and direct RTI submission to HMRC.
• Cons: Smart Capture is capped at 10 receipts and bills monthly unless the £5-per-month add-on is purchased.
• Cons: Cash-basis accounting excludes Stock and Payroll.
• Cons: Free bank-account-funded access depends on retaining a qualifying bank account or meeting Mettle transaction conditions; add-ons can still cost extra.

Alternatives

For a different accounting option, compare Odoo Accounting, which has a free plan and supports Android, iOS, web and self-hosted use. Zoho Books may suit a solopreneur or micro business that can stay below its $50K annual-revenue threshold: its free plan lasts indefinitely under that condition and includes one user and one account.

Choose Zoho Inventory when inventory workflows are the priority: its free tier allows 50 orders per month, one user and one location. Akaunting is another freemium web option, with paid cloud plans including Standard at $12 per month for one company, one user plus one accountant, 1,000 invoices and four included apps.

Exact Online is a paid web alternative with a free trial and accounting plans that include CRM, bank feeds and invoicing. FreshBooks is a paid alternative with Android, iOS and web access, starting at $23 per month for Lite. Holded API is a paid option with app and web access; its Plus plan costs €15 per month and includes 250 invoices per year, one connected bank and one user. Zuora CPQ is a separate paid product with custom pricing.

Verdict

Choose FreeAgent if you run a small UK business and want bank-fed accounting, invoicing and HMRC tax tasks, with payroll available when your accounting basis permits it. Its key strengths are the joined-up UK tax and bookkeeping workflow and practical mobile admin. Look elsewhere if cash-basis accounting must coexist with stock or payroll, or if the Smart Capture cap and add-on cost do not suit your receipt volume.