FreeAgent is a cloud-based accounting software built for freelancers, contractors, and small business owners. It helps manage invoicing, expenses, banking, and tax obligations all in one place. The platform automates key tasks such as importing bank transactions, calculating VAT and Self Assessment, and generating real-time financial insights. Users can also send professional invoices, track time, and manage projects with ease. Fully HMRC-compatible, FreeAgent allows users to file VAT returns and tax submissions directly to HMRC, making it a convenient, all-in-one solution for managing business finances efficiently.

Is FreeAgent HMRC recognised?

Yes, FreeAgent is recognised by HMRC (the UK tax authority) for several compliance purposes: FreeAgent is listed by HMRC as a “commercial software supplier” via its parent company FreeAgent Central Ltd, which means it meets HMRC’s technical standards for submitting tax data. It supports the Making Tax Digital (MTD) for Income Tax initiative and is described as an “HMRC-recognised solution” for sole traders and landlords to keep digital records, submit quarterly updates and final declarations. Moreover, it supports HMRC-compatible payroll (RTI) submissions and VAT/Making Tax Digital for VAT procedures. So for freelancers, contractors and small business owners in the UK, FreeAgent is a valid and compliant tool you can trust for your HMRC filings.

Is FreeAgent the same as Xero?

No, FreeAgent and Xero are different accounting platforms. Both offer cloud-based bookkeeping, invoicing, and tax management tools, but they serve slightly different audiences. FreeAgent is designed for freelancers, contractors, and very small businesses, focusing on simplicity and built-in UK tax features. Xero, on the other hand, caters to larger or growing businesses, offering more advanced features such as multi-currency support, inventory tracking, and a wider range of integrations. In short, FreeAgent is ideal for straightforward accounting needs, while Xero suits businesses with more complex financial requirements.

Do I need an accountant if I use FreeAgent?

Not necessarily. FreeAgent is designed to help freelancers, contractors, and small business owners manage invoicing, expenses, and tax submissions without needing deep accounting knowledge. However, while the software automates much of the process, an accountant can still provide expert advice, ensure compliance, and help with complex tax or business decisions. In short, FreeAgent can replace many routine accounting tasks, but having an accountant can still add value and peace of mind.

Does FreeAgent do self-assessment?

Yes, FreeAgent lets freelancers, contractors, and small business owners complete and file their Self Assessment tax returns directly to HMRC. It automatically fills in much of the return using your recorded income, expenses, and tax data, making the process faster and more accurate. However, if your return includes complex sections like foreign income or capital gains, you may need to complete those parts separately outside FreeAgent.

Does FreeAgent do bookkeeping?

Yes, FreeAgent handles most everyday bookkeeping tasks for freelancers, contractors, and small business owners. It automatically imports bank transactions, tracks income and expenses, and keeps your accounts organised in real time. The software also generates key financial reports like profit and loss statements and balance sheets, helping you stay on top of your business performance. While FreeAgent covers most bookkeeping needs, you may still want an accountant for complex adjustments or advanced financial advice.

How easy is FreeAgent to use?

FreeAgent is widely regarded as user-friendly for freelancers, contractors and small business owners. Reviewers praise its clean interface, intuitive navigation and built-in templates that make tasks like invoicing, expense-tracking and VAT/submission significantly simpler. The learning curve for core features is minimal, you don’t need deep accounting knowledge to get started, thanks to labelled menus and helpful onboarding. That said, for more advanced tasks (custom reports, complex tax scenarios, multiple currencies) some users report limitations or the need for a bit more ‘know-how’. In short: if your business has fairly straightforward bookkeeping needs, FreeAgent is very easy to use. If you anticipate growth or complexity, you may still find it manageable but might need some additional learning or support.

Home » Our Services » FreeAgent

Your Specialist Accountancy Partner Powering Your Business

Smart, HMRC-compliant software for contractors, self-employed & small businesses Get an Instant Quote Request a Free Demo

Clear and Connected Finances, with FreeAgent

At Gorilla Accounting, we believe that managing your finances should be simple, smart, and stress-free. That’s why we’ve partnered with FreeAgent, the award-winning accounting software designed specifically for freelancers, contractors, and small business owners.

Run your business from anywhere
Send estimates, invoices and payment reminders
Log and track your expenses
Check your cash flow
Stay on top of your tax affairs

FreeAgent makes it easy to monitor and manage your finances on the go using the powerful mobile app.

FreeAgent Accounting Software is the No.1 Choice for Small Businesses

Gorilla Accounting is proud to provide full FreeAgent access to all our clients included in our great value monthly fees when you join our service.

INSIGHTFUL
REPORTING

Automatically generate financial reports, get key metrics at a glance in the dashboard

POWERFUL
PAYROLL

Full PAYE and NIC calculations with automated RTI submissions to HMRC

EASY
INVOICING

Create branded templates, set up recurring invoices and automated reminders

MANAGE
EXPENSES

Automatically track and categorise your expenses to keep your records organised

ONLINE
PAYMENTS

Payment provider integration so your clients can easily pay you online

HMRC
INTEGRATION

Connect with HMRCs systems to easily and securely file your tax returns digitally

FULL MTD
COMPLIANCE

Ensure compliance with all current and future Making Tax Digital regulations

MOBILE
APP

Manage your finances and log expenses on-the-go with the powerful mobile app

MTD Made Easy with FreeAgent & Gorilla

MTD will have a big impact on how small businesses maintain their accounts, calculate their tax returns and file them with HMRC. But with this change comes opportunity and switching to MTD-compliant accounting software such as FreeAgent offers significant benefits including powerful automation, improved accuracy and insightful reporting.

The rollout of MTD is ongoing:

Since April 2022, all VAT-registered businesses must comply with MTD for VAT regulations which means recording all VAT-related transactions digitally and filing your returns with HMRC using approved software.
The next major milestone comes in April 2026 when sole traders and landlords earning over £50,000 a year must follow MTD rules for income tax.
Sole traders and landlords earning over £30,000 a year must comply from April 2027 and over £20,000 a year from April 2028.
The traditional self-assessment process will also be replaced under MTD with taxpayers instead submitting quarterly updates to HMRC, an End of Period Statement (EOPS) and final declaration.

FreeAgent accounting software gets you ahead of the curve with MTD. It’s already approved by HMRC for MTD for Income Tax and more than 600,000 MTD VAT returns have been filed using FreeAgent. As MTD continues to roll out, using FreeAgent will ensure that you are fully compliant.

FreeAgent & Gorilla: Expert help, guaranteed

FreeAgent has UK Contact Support via email, WhatsApp or telephone, combined with our Client Service Guarantee. Your accountant will be available to offer you unlimited advice and support, including any help you need with FreeAgent, via telephone, email, video call and face to face meetings.

If you’re struggling with slow response times from your current accountant, our client service guarantee means that if you contact us before 3pm on any working day we’ll respond to your query the very same day or we’ll issue you with a £50 compensation payment.

Your dedicated Gorilla Accounting accountant will quickly onboard you with FreeAgent, giving you instant access to its powerful features. They’ll also have direct access to your accounts, eliminating the need to send information and saving time. This allows them to focus on providing tailored advice, personalized support, and helping you maximize tax efficiencies to boost your take-home pay and grow your business.

All included in our fixed-fee accountancy packages saving you up to £330 a year

FreeAgent & Gorilla: Effortless accounting starts here

FreeAgent is cloud-based so you can access your accounts at any time on any device with an internet connection to get a comprehensive real-time overview of the financial position and health of your business.

The host of clever inbuilt features and powerful automation functionality will make your life much easier and save you heaps of time. Many previously laborious and repetitive accounting and admin tasks such as calculating and preparing your tax returns, bank reconciliation and invoicing are performed by automatically by FreeAgent while you work.

FreeAgent: The perfect choice for you

Small Businesses

Freelancers & Contractors

Small Businesses

Freelancers & Contractors

MTD Compliance with FreeAgent Accounting Software

If you’re a sole trader or landlord earning over £50,000 a year, you now have to comply with Making Tax Digital for Income Tax, and our MTD accountancy packages make compliance easy. They provide everything you need to stay organised, compliant with MTD and manage your finances with confidence.

Whether you prefer to manage your own bookkeeping or want full support from a dedicated accountant, we offer flexible options to suit your needs.

HMRC-approved FreeAgent accounting software included at no extra cost
Self-assessment and MTD registration with HMRC
Automated reminders and tax deadline alerts
Quarterly updates and final declaration submissions

With real-time financial insights, tax estimates, and streamlined digital record-keeping, you’ll gain better visibility over your cash flow and avoid last-minute surprises. For those who want a more hands-off approach, our MTD Complete package also includes proactive advice, regular reviews, and expert support from your own dedicated accountant throughout the year.

Find Out More Enquire Today

The UK’s Most Trusted Accountancy Firm

Powerful integrations designed to make your business run smarter and smoother

Syncs to your bank account

Effortless bank syncing with top UK and online banks.

Online payment options

Cost effective, fast and flexible payments.

More integrations, more connections

Integrate with the tools that power your business.

Gorilla Accounting + FreeAgent: Answers at Your Fingertips

What Is FreeAgent?
FreeAgent is a cloud-based accounting software built for freelancers, contractors, and small business owners. It helps manage invoicing, expenses, banking, and tax obligations all in one place.
The platform automates key tasks such as importing bank transactions, calculating VAT and Self Assessment, and generating real-time financial insights. Users can also send professional invoices, track time, and manage projects with ease.
Fully HMRC-compatible, FreeAgent allows users to file VAT returns and tax submissions directly to HMRC, making it a convenient, all-in-one solution for managing business finances efficiently.
Is FreeAgent HMRC recognised?
Yes, FreeAgent is recognised by HMRC (the UK tax authority) for several compliance purposes:
FreeAgent is listed by HMRC as a “commercial software supplier” via its parent company FreeAgent Central Ltd, which means it meets HMRC’s technical standards for submitting tax data.
It supports the Making Tax Digital (MTD) for Income Tax initiative and is described as an “HMRC-recognised solution” for sole traders and landlords to keep digital records, submit quarterly updates and final declarations.
Moreover, it supports HMRC-compatible payroll (RTI) submissions and VAT/Making Tax Digital for VAT procedures.
So for freelancers, contractors and small business owners in the UK, FreeAgent is a valid and compliant tool you can trust for your HMRC filings.
Is FreeAgent the same as Xero?
No, FreeAgent and Xero are different accounting platforms. Both offer cloud-based bookkeeping, invoicing, and tax management tools, but they serve slightly different audiences.
FreeAgent is designed for freelancers, contractors, and very small businesses, focusing on simplicity and built-in UK tax features. Xero, on the other hand, caters to larger or growing businesses, offering more advanced features such as multi-currency support, inventory tracking, and a wider range of integrations.
In short, FreeAgent is ideal for straightforward accounting needs, while Xero suits businesses with more complex financial requirements.
Do I need an accountant if I use FreeAgent?
Not necessarily. FreeAgent is designed to help freelancers, contractors, and small business owners manage invoicing, expenses, and tax submissions without needing deep accounting knowledge.
However, while the software automates much of the process, an accountant can still provide expert advice, ensure compliance, and help with complex tax or business decisions.
In short, FreeAgent can replace many routine accounting tasks, but having an accountant can still add value and peace of mind.
Does FreeAgent do self-assessment?
Yes, FreeAgent lets freelancers, contractors, and small business owners complete and file their Self Assessment tax returns directly to HMRC.
It automatically fills in much of the return using your recorded income, expenses, and tax data, making the process faster and more accurate.
However, if your return includes complex sections like foreign income or capital gains, you may need to complete those parts separately outside FreeAgent.
Does FreeAgent do bookkeeping?
Yes, FreeAgent handles most everyday bookkeeping tasks for freelancers, contractors, and small business owners. It automatically imports bank transactions, tracks income and expenses, and keeps your accounts organised in real time.
The software also generates key financial reports like profit and loss statements and balance sheets, helping you stay on top of your business performance.
While FreeAgent covers most bookkeeping needs, you may still want an accountant for complex adjustments or advanced financial advice.
How easy is FreeAgent to use?
FreeAgent is widely regarded as user-friendly for freelancers, contractors and small business owners. Reviewers praise its clean interface, intuitive navigation and built-in templates that make tasks like invoicing, expense-tracking and VAT/submission significantly simpler.
The learning curve for core features is minimal, you don’t need deep accounting knowledge to get started, thanks to labelled menus and helpful onboarding. That said, for more advanced tasks (custom reports, complex tax scenarios, multiple currencies) some users report limitations or the need for a bit more ‘know-how’.
In short: if your business has fairly straightforward bookkeeping needs, FreeAgent is very easy to use. If you anticipate growth or complexity, you may still find it manageable but might need some additional learning or support.