Bridging software won't cut it in MTD era, FreeAgent warns
FreeAgent argues UK accountants relying on bridging software to bridge spreadsheet workflows for MTD tax filing face long-term inefficiency and should adopt dedicated compliance tools.
Companies › FreeAgent
FreeAgent
Cloud accounting software for freelancers and small businesses with AI-assisted invoicing and expense categorization.
FreeAgent Insights
Updated 6/16/2026
About FreeAgent
FreeAgent is a cloud accounting platform designed for UK freelancers and small businesses, offering AI-assisted invoicing, expense categorization, and tax compliance automation. The software helps users streamline bookkeeping and navigate regulatory requirements, particularly around Making Tax Digital (MTD) compliance. FreeAgent targets sole traders and small practices seeking to reduce manual accounting workload through intelligent automation.
Recent News & Trends
- VAT automation ahead of MTD rollout: FreeAgent shipped VAT improvements with an AI checker tool before the April 2026 Making Tax Digital rollout for UK sole traders, as reported in "FreeAgent Ships, Dext Standardises & The Skills Gap Widens".
- MTD Income Tax automation launches: Released new features to automate quarterly Income Tax compliance under the MTD mandate, enabling accountancy practices to reduce client-by-client manual processing at scale ("New ways to automate, scale and take control of MTD for Income Tax").
- Sole trader compliance concerns: FreeAgent's research revealed 39% of sole traders find MTD compliance more stressful than starting their business, highlighting strong market demand for compliance automation tools.
- Competitive landscape intensifying: Positioned alongside competitors like Dext, which added compliance-aligned AI baselines, and emerging players like Perplexity offering AI-driven tax form completion.
Companies in Tax
Accel
3 articles
Accrual
16 articles
Acumatica
8 articles
Alation
6 articles
Amazon Bedrock
1 article
AmplifAI
1 article
View all 139 companies in Tax →
Recent Coverage
Joiin launches forecasting feature for consolidated financial reporting
Joiin's new forecasting tool integrates with accounting platforms (Xero, QuickBooks, Sage) to generate P&L, balance sheet, and cash flow forecasts without manual exports or separate models.
1 more from Joiin Blog
Joiin consolidates multi-platform accounting data into unified dashboard
Joiin aggregates financial data from Xero, QuickBooks, Sage, and other accounting platforms into a single view, eliminating manual month-end consolidation across acquired companies or business units.
FreeAgent rolls out 7 VAT improvements for accountants and bookkeepers
FreeAgent updates VAT tools with dedicated tax rate columns and workflow streamlining features based on accountant feedback, targeting time savings for practices handling client compliance.
FreeAgent integrates with Joiin for automated multi-company consolidation
FreeAgent users can now directly connect to Joiin for automated financial data consolidation across multiple entities, eliminating manual export-and-spreadsheet workflows with 24-hour refresh cycles.
FreeAgent automates rental statement capture and categorization for landlord ...
FreeAgent launches automated rental statement capture and categorization for unincorporated landlord clients, reducing manual reconciliation work for accountants managing MTD compliance.
FreeAgent, Dext roll out VAT and compliance automation as MTD expands
FreeAgent ships VAT improvements with AI checker ahead of April 2026 MTD rollout for UK sole traders; Dext adds compliance-aligned AI baseline as vendors compete on automation for small business co...
Perplexity launches AI agent to draft US tax returns, catches solicitor's error
Perplexity's new Computer for Taxes agent reviews financial documents and automatically fills out official IRS forms for US federal income tax returns, now live for Pro subscribers ($17/month).
FreeAgent rolls out MTD automation tools for UK tax practices
FreeAgent releases new features to automate quarterly Income Tax compliance under UK's Making Tax Digital mandate, targeting reduction of manual client-by-client processes.
1 more from FreeAgent Blog
FreeAgent rolls out MTD automation for UK tax practices
FreeAgent launches updates to automate Making Tax Digital (MTD) compliance for UK income tax, enabling practices to scale client management with reduced manual processing.