FreeAgent vs Wave: Which Is Better in 2026?

FreeAgent is UK-based cloud accounting software built for small businesses, freelancers, contractors and landlords. It brings invoicing, expenses, tax and reporting into one place and files directly to HMRC, taking the fear out of self-assessment and VAT for people who run their own business but aren't accountants.

What is FreeAgent?

FreeAgent handles the full money side of a small business: raising invoices and chasing payment, capturing expenses, tracking projects and time, connecting to your bank, and turning all of it into the tax returns HMRC expects. Because it's designed around UK tax rules, it can file Self-Assessment and VAT returns directly and is a recognised solution for Making Tax Digital (MTD).

Who it's for

FreeAgent is aimed at UK sole traders and freelancers, limited companies, contractors, and landlords, as well as the accountants and bookkeepers who support them. It's ideal for anyone who wants to stay on top of their books and file taxes correctly without hiring out every part of the process.

Key features

• Invoicing with automated reminders and online payment options
• Expense capture with AI-powered Smart Capture
• Self-Assessment and VAT returns filed directly to HMRC
• Making Tax Digital (MTD) for Income Tax compliance
• Integrated payroll with Real Time Information (RTI) submission
• 90-day cashflow forecasting
• Bank feeds via Open Banking
• Full mobile app access

Tax without the panic

FreeAgent's biggest draw is how it demystifies UK tax. As you invoice and record expenses through the year, it continuously works out what you'll owe, then lets you file Self-Assessment and VAT straight to HMRC when the time comes — no spreadsheets, no last-minute scramble, and full MTD compliance built in. For sole traders and small limited companies, that alone can replace a lot of accountant hours.

Everyday bookkeeping made simple

Open Banking bank feeds pull transactions in automatically, Smart Capture reads receipts so expenses log themselves, and 90-day cashflow forecasting shows what's coming so there are no nasty surprises. Invoices can be sent with automatic reminders and online payment links, helping small businesses get paid faster with less chasing.

Integrations and support

FreeAgent connects with tools like Dext and Amazon and other business services, and is backed by a UK-based human support team — a meaningful reassurance when the questions are about your own tax. It carries strong customer ratings and industry recognition for its ease of use.

Pricing

FreeAgent offers a genuinely free tier for customers who bank with NatWest, RBS, Ulster Bank or Mettle, and otherwise monthly plans roughly £5–£33 depending on whether you're a landlord, sole trader or limited company, often with introductory discounts. A 30-day free trial with no card required lets you try it first.

Payroll and projects

Beyond the books and tax, FreeAgent covers running a small operation day to day. Integrated payroll with RTI submission handles paying yourself or a small team and reports it to HMRC correctly, while project and time tracking let contractors and agencies see profitability per job and bill accurately. For a one-person company, having payroll, projects, invoicing and tax in a single tool removes a surprising amount of scattered admin.

Why choose FreeAgent

For a UK freelancer, contractor or small limited company, FreeAgent is one of the most reassuring ways to run the books and stay on the right side of HMRC. The combination of everyday bookkeeping, direct MTD-compliant filing, real UK support and (for some banks) a free plan makes it a standout choice for people who'd rather spend time on their business than on tax admin.

Wave is accounting and invoicing software that offers powerful financial tools for small businesses and freelancers — with its core accounting and invoicing features available completely free. For very small businesses, solo entrepreneurs, and freelancers, paid accounting software can feel like an unnecessary expense, yet managing finances properly is essential. Wave fills this gap by providing genuinely capable, easy-to-use accounting and invoicing at no cost, making good financial management accessible to those just starting out or running lean.

The platform lets users send professional invoices, track income and expenses, scan and manage receipts, and keep their books organized, with a clean and approachable interface designed for non-accountants. It connects to bank accounts to import transactions, categorizes income and expenses, and generates the financial reports small businesses need, giving owners a clear picture of their finances and making tax time easier. While the core accounting and invoicing are free, Wave earns money through paid add-on services like payment processing (so customers can pay invoices online) and payroll, which businesses can opt into as they grow. This freemium model makes it especially attractive for budget-conscious small businesses.

Wave is used by freelancers, solo entrepreneurs, and small businesses that want capable accounting and invoicing without paying for software. The value is professional financial management for free: it lets the smallest businesses send invoices, track their money, and stay organized without the cost that often deters them from using proper tools, while offering paid services like online payments and payroll for when they need them. For someone running a small operation who wants to look professional, get paid, and keep their finances in order without adding another monthly bill, Wave offers an unusually generous and genuinely useful solution that has helped countless small businesses manage their money.