Latch vs FreeAgent for MTD: The Bank-Lock Problem
FreeAgent offers free MTD compliance but only if you bank with NatWest, RBS, or Mettle. Latch offers free MTD for everyone. Full comparison of the two approaches.
The Latch Team
Editorial
FreeAgent is one of the most popular accounting platforms in the UK, and it offers full Making Tax Digital compliance. For landlords, it is an attractive option — especially because it is available free through NatWest, RBS, Mettle, and Ulster Bank business accounts. But that free access comes with a significant condition.
Latch takes a different approach. Core MTD features are free for up to 3 leases with no bank account requirement, no trial period, and no strings attached. The question for landlords is whether FreeAgent's powerful accounting features justify the bank-lock, or whether a purpose-built landlord platform offers a better path to compliance.
This comparison focuses on MTD compliance specifically: what each platform offers, what it costs, and what conditions come attached to that free access.
Quick MTD Comparison: Latch vs FreeAgent
| Feature | Latch | FreeAgent |
|---|---|---|
| Free MTD Access | Yes — free for up to 3 leases, no conditions | Yes — but only with NatWest/RBS/Mettle/Ulster Bank account |
| Free Without Bank Lock | Yes — any bank, any account | No — £29.50/month without qualifying bank account |
| Digital Record Keeping | Yes — landlord-specific categories | Yes — full accounting with invoicing |
| Quarterly Submissions | Yes — quarterly summary generation | Yes — quarterly update filing |
| HMRC API Integration | Yes — direct HMRC submission | Yes — direct HMRC submission |
| Bank Feed Integration | Yes — Open Banking | Yes — Open Banking |
| AI Categorisation | Yes — Matt the AI agent (paid plan) | Auto-categorisation rules |
| Landlord-Specific Features | Yes — property compliance, tenant management, lease tracking | No — general business accounting |
| Self Assessment | MTD quarterly and annual returns | Full Self Assessment filing |
| VAT Support | Not applicable for most landlords | Full MTD for VAT compliance |
MTD Pricing Comparison
Latch Free
£0
forever
Up to 3 leases, all core MTD features, any bank account
Latch Pro
£20
per month
Up to 8 leases, Matt AI agent, full property management
FreeAgent (with qualifying bank)
£0
forever
Full features, requires NatWest/RBS/Mettle/Ulster Bank account
FreeAgent (standard)
£29.50
per month
Full features for non-qualifying bank customers
The bank-lock problem: FreeAgent is genuinely free if you hold a business account with NatWest, RBS, Mettle, or Ulster Bank. If you bank with Lloyds, Barclays, HSBC, Starling, Monzo, or any other provider, you pay £29.50 per month (£354 per year). Latch is free regardless of where you bank.
For landlords who already bank with a qualifying institution, FreeAgent is a strong free option. For everyone else, it is one of the more expensive MTD solutions on the market at nearly £360 per year.
Latch's free tier has no bank requirement. If you have 1 to 3 leases, you get full MTD compliance regardless of your banking choice.
MTD Feature Deep Dive
Digital Record Keeping
FreeAgent offers comprehensive business accounting with invoicing, expense tracking, time tracking, and project management. For landlords, you would set up rental income as recurring invoices and expenses as standard business costs. It works, but requires manual configuration for property-specific workflows.
Latch provides landlord-specific record keeping from the start: income categorised by property, expenses mapped to HMRC tax categories for rental income, and property-level reporting without manual accounting setup.
Quarterly Submissions
Both platforms support direct quarterly submissions to HMRC via the MTD API. FreeAgent has years of experience with MTD for VAT and has extended this to Income Tax. Latch generates quarterly summaries from your categorised property data with clear breakdowns by income and expense type.
The Bank-Lock Problem
FreeAgent's free access is funded by banking partnerships. NatWest Group (which includes NatWest, RBS, Mettle, and Ulster Bank) provides FreeAgent free to its business banking customers. This is a genuine benefit if you already bank there.
But for landlords who do not bank with these institutions, the arrangement creates a difficult choice: switch your business banking to access free software, or pay £29.50 per month. Switching banks involves direct debit migrations, standing order changes, and potential impacts on mortgage relationships. It is not a trivial decision.
Latch's free plan has no such condition. You connect any UK bank via Open Banking and access all core MTD features. Your banking choice remains entirely yours.
Already with NatWest or RBS? FreeAgent is a strong free option for you. But if you value landlord-specific features, property compliance tracking, and the flexibility to change banks in the future without losing your MTD software, Latch offers independence.
Landlord-Specific Features
This is where the platforms diverge most significantly. FreeAgent is a general business accounting tool. It handles invoicing, expenses, payroll, and tax returns for freelancers, contractors, and small businesses. It has no concept of properties, tenants, leases, or compliance certificates.
Latch is purpose-built for landlords. Alongside MTD compliance, you get:
- Property-level income and expense tracking
- Gas Safety, EICR, and EPC compliance tracking with reminders
- Tenant management and communication
- Lease lifecycle management
- Maintenance request handling
- AI-powered rent chasing (paid plan)
For landlords who need both accounting compliance and property management, Latch eliminates the need for multiple separate tools.
FreeAgent MTD Pros and Cons
FreeAgent MTD
Pros
- Genuinely free with NatWest/RBS/Mettle/Ulster Bank accounts
- Comprehensive accounting platform (invoicing, expenses, payroll)
- Years of MTD experience (VAT and Income Tax)
- Direct HMRC API integration
- Strong Self Assessment and tax return generation
- Large user base with extensive support documentation
Cons
- Free only with specific bank accounts (bank-locked)
- £29.50/month (£354/year) without qualifying bank — expensive
- Not landlord-specific — requires manual property accounting setup
- No property compliance tracking (Gas, EICR, EPC)
- No tenant management, lease tracking, or maintenance features
- Switching banks to access free FreeAgent is non-trivial
Latch MTD Pros and Cons
Latch MTD
Pros
- Free MTD compliance for up to 3 leases — no bank requirement
- Purpose-built for UK landlords with property-specific workflows
- AI-powered categorisation via Matt on paid plans
- Full property compliance tracking alongside MTD
- Direct HMRC API integration
- Works with any UK bank via Open Banking
Cons
- Free tier capped at 3 leases
- Less comprehensive general accounting than FreeAgent
- No invoicing, payroll, or VAT features
- AI features require paid plan
- Newer platform with shorter track record
The Latch Approach: Why We Made MTD Free
We believe MTD compliance should not depend on where you bank. Our free plan includes all core MTD features for up to 3 leases with no conditions, no bank requirements, and no trial periods. MTD is a government mandate, not a luxury feature, and the tools to meet it should be accessible to every landlord.
Verdict
Latch vs FreeAgent for MTD
If you already bank with NatWest, RBS, Mettle, or Ulster Bank, FreeAgent is a strong free option with powerful accounting features. If you bank elsewhere, FreeAgent is expensive at £354 per year. For landlords with 1 to 3 properties who want free MTD compliance without bank conditions and landlord-specific features, Latch is the better choice.
Best for: Latch is best for landlords wanting unconditional free MTD compliance and purpose-built property management. FreeAgent is best for landlords already banking with NatWest Group who want comprehensive business accounting.
Free MTD Compliance — No Bank Lock Required
Get MTD-ready with Latch. Free for up to 3 leases with any bank. No credit card required. No qualifying conditions. Upgrade for Matt the AI agent and more leases.
Ready to simplify your property management?
Create your free account today and see how organized financial tracking can streamline your portfolio.
Get Started with LatchDisclaimer: This article provides general information about MTD software options and pricing. It does not constitute tax advice. FreeAgent free access is subject to NatWest Group terms and may change. Software pricing is based on published rates as of February 2026. Consult a qualified accountant or tax adviser for advice specific to your circumstances.
