Tool Review · Updated 2026-05
FreshBooks
FreshBooks is not currently listed on the GOV.UK MTD ITSA software finder. It cannot be used for MTD ITSA quarterly submissions. If you have a Making Tax Digital obligation, you need a different tool. Verified against GOV.UK May 2026.
No commercial relationship — FreshBooks is featured on editorial merit alone.
Verified May 2026 · Source: GOV.UK
FreshBooks and MTD ITSA — important notice
⚠️ Not currently HMRC-recognised for MTD ITSA. We checked the GOV.UK software finder in May 2026. FreshBooks does not appear — not in the recognised list, and not in the “in development” section. FreshBooks has not publicly engaged with HMRC’s recognition process as of this date.
If you have a Making Tax Digital for Income Tax obligation, you cannot use FreshBooks to meet it. You need a GOV.UK-listed tool.
Verified May 2026 · Source: GOV.UK
If you need a confirmed HMRC-recognised tool, see Xero, QuickBooks, FreeAgent, or Zoho Books.
What FreshBooks’ own support page says
FreshBooks’ own help documentation makes this clear. Their Making Tax Digital support article states, under “Making Tax Digital for Income Tax (ITSA)”:
“FreshBooks serves as your primary hub for digital record keeping only. To send your data to HMRC, use one of MTD’s compatible software to submit your quarterly update to the HMRC by the submission deadline.”
In other words, FreshBooks itself tells users to export a CSV and submit through a different, MTD-compatible tool. FreshBooks supports MTD for VAT (which has been mandatory since 2019 and is a separate requirement), but it does not submit MTD ITSA quarterly updates directly to HMRC. This is why it does not appear on the GOV.UK software finder for MTD ITSA.
Where FreshBooks is still useful
FreshBooks’ strength is invoicing and client management. If you do not yet have an MTD ITSA obligation (income under £50,000, or exempt), FreshBooks remains an excellent invoicing platform for service-based sole traders — client portals, proposals, time tracking, and expense capture are all genuinely well built.
If FreshBooks achieves GOV.UK recognition in future, we will update this page immediately. It would then be worth considering for service-based sole traders who need both invoicing quality and MTD compliance.
When to choose something else
If you have an MTD ITSA obligation now, do not use FreshBooks. Switch to an HMRC-recognised alternative. The simplest free option is FreeAgent (free with NatWest/RBS banking) or Zoho Books (free tier available, GOV.UK listed).
The client limits on the Lite plan (5 active clients) will also be too restrictive for sole traders with a larger client base — the Plus plan (50 clients) is more realistic if you do use FreshBooks for invoicing only.
MTD ITSA Phase Support
MTD ITSA Rollout Phases
- Phase 1 — April 2026 Live Not confirmed
Income over £50,000
- Phase 2 — April 2027 Not confirmed
Income over £30,000
- Phase 3 — April 2028 Not confirmed
Income over £20,000
Phase support verified against GOV.UK software finder . Always confirm with the software provider before your obligation date.
FreshBooks does not appear on the GOV.UK MTD ITSA software finder (verified May 2026). It is not in the 'in development' section either — FreshBooks has not publicly engaged with the HMRC recognition process as of this date.
Landlord support: Basic expense and income tracking. Not designed primarily for property income.
CIS support: No CIS-specific functionality. Not suitable for CIS subcontractors.
Pricing (GBP)
| Plan | Price/mo | Contacts | |
|---|---|---|---|
| Lite | £15/mo | Get started → | |
| Plus | £25/mo | Get started → | |
| Premium | £45/mo | Get started → |
Prices shown are monthly and exclude VAT. UK pricing in GBP. Annual billing available at approximately 10% discount.
Last verified: April 2026
What we like
- + Best-in-class invoicing and client management UI
- + Strong mobile app for capturing expenses
- + Good for service businesses billing multiple clients
- + Polished client portal and proposal tools
What we don't like
- − Not listed on the GOV.UK MTD ITSA software finder (verified May 2026)
- − Cannot be used for MTD ITSA quarterly submissions
- − No free tier
- − Client limits on lower plans are restrictive
- − No dedicated landlord or CIS support
Who it's best for
- ✓ Service-based sole traders who do not yet have an MTD ITSA obligation and want excellent invoicing
- ✓ Freelancers who prioritise client-facing tools and are monitoring FreshBooks for future MTD recognition
Not ideal if
- ✗ Anyone with a current MTD ITSA obligation (use Xero, QuickBooks, or FreeAgent)
- ✗ Landlords (use FreeAgent or Zoho Books)
- ✗ CIS subcontractors
- ✗ Budget-first sole traders (Zoho Books free plan is cheaper and MTD-recognised)