SmartBooks vs FreeAgent — an honest comparison.
When FreeAgent (free with NatWest) is the right pick, when SmartBooks is, and how to think about the NatWest free-bundle question on its own terms — for sole traders, contractors, landlords and small UK firms.
The short answer
FreeAgent is the right pick today if (a) you bank with NatWest, RBS, Ulster Bank NI or Mettle and get it free, (b) you’re a sole trader or contractor with a simple workflow, (c) you need live MTD VAT filing in the next 60 days. SmartBooks is the right pick if (a) you want Smart Inbox depth (per-field confidence, review queue, approval flow), (b) you’re a landlord with a multi-property portfolio or a firm running 30+ clients, or (c) you want accounts production in the same product rather than as a partner add-on.
1. The NatWest free-bundle question
FreeAgent was acquired by NatWest in 2018 and is free for customers of NatWest, Royal Bank of Scotland, Ulster Bank (NI) and Mettle who hold a business current account in good standing. Outside those banks, FreeAgent is £19/month for sole traders.
If you bank with one of those four, the honest read is FreeAgent has a real cost advantage that SmartBooks cannot match on price.SmartBooks Business is anchored at £29/month. The fair comparison is therefore not FreeAgent vs SmartBooks on cost — it’s “is the workflow depth worth £29/month to me”.
For a freelance designer or contractor with 30 invoices a year and a handful of receipts, the answer is often no. For a landlord with 4 properties, joint ownership, mortgage interest split under Section 24, or a firm managing 30+ clients, the answer flips.
2. Capability comparison
3. When FreeAgent is the right call
- You bank with NatWest, RBS, Ulster Bank NI or Mettle and don’t need workflow depth beyond what FreeAgent provides.
- You’re a sole trader or contractor with a single income source, modest receipt volume, and a simple chart of accounts.
- You need live MTD VAT filing in the next 60 days.
- You have a single rental property, in your sole name, with a clean monthly rent and a handful of allowable expenses.
- Your accountant is a FreeAgent specialist and the relationship is working.
4. When SmartBooks is the better call
- You’re a landlord with multiple properties, joint ownership, or a mix of property + self-employment income. See MTD ITSA for landlords.
- You’re a firm running 30+ clients — FreeAgent for Practices works but has a ceiling.
- You want Smart Inbox depth — per-field confidence scores, dedicated review queue, approval before any HMRC submission.
- You want accounts production in the same product rather than exported to TaxCalc / Iris / Capium.
- You’re building or running a bookkeeping practice and need a workspace built around clients, not around a single business.
5. If you decide to switch
The migration path from FreeAgent to SmartBooks follows the same shape as the Xero switching guide:
- Chart of accounts mapped, contacts imported, opening balances at chosen cut-over date.
- Up to 24 months of historic transactions for continuity.
- Bank feeds re-established via Yapily (or NatWest direct, depending on bank).
- Bank rules re-built — FreeAgent uses Auto Explanations; SmartBooks rules use a more expressive syntax.
- Parallel-running for 1–2 weeks before cut-over at the start of a new VAT quarter.
One specific note for NatWest customers: when you cancel FreeAgent through your NatWest portal, the free-bundle entitlement persists for the cooling-off period (typically 30 days) so you can reactivate if the switch doesn’t suit you. Plan the cut-over date with that window in mind.
6. Bottom line
FreeAgent has a clear cost advantage for NatWest-banked sole traders. SmartBooks has a workflow advantage for landlords with portfolios, for firms with client books, and for anyone who wants the receipt-to-filing loop closed in one product rather than stitched together.
If you’re unsure which side of the line you’re on, book a 15-minute demo— we’ll walk through your specific FreeAgent setup against the SmartBooks workflow.
Related guides
- SmartBooks vs QuickBooks Online
- SmartBooks vs Sage
- Switching from Xero to SmartBooks
- MTD ITSA for landlords — the April 2026 mandate
FAQ
If FreeAgent is free with my NatWest business account, why would I pay for SmartBooks?
Three reasons that matter for different people. (1) Smart Inbox: FreeAgent's receipt capture is functional but light; SmartBooks classifies with per-field confidence and routes to a review queue. (2) Firm tooling: FreeAgent isn't built for an accountancy/bookkeeping firm running 30+ clients; SmartBooks is. (3) Accounts production: FreeAgent gives you the figures but produces the statutory accounts via partner tools; SmartBooks handles FRS 102 1A and FRS 105 in-product. If none of those three matter to you and you're a NatWest sole-trader customer, FreeAgent is the rational pick.
Is FreeAgent really free?
Yes for customers of NatWest, Royal Bank of Scotland, Ulster Bank (NI) or Mettle who have a current business account in good standing. Outside those banks, FreeAgent is £19/month for sole traders and goes up from there. Note: NatWest acquired FreeAgent in 2018; the bundle is part of the business-banking proposition.
Can FreeAgent file MTD VAT today?
Yes — FreeAgent has been HMRC-recognised for MTD VAT for years and files live. MTD ITSA support is rolling out in stages. SmartBooks has completed HMRC sandbox testing for both MTD VAT and MTD ITSA; production credentials are with HMRC for review. If you have a VAT period due in the next 60 days and you bank with NatWest, FreeAgent is the lower-friction call today.
Does FreeAgent work for landlords under MTD ITSA?
FreeAgent has a UK property module and is working on the full MTD ITSA quarterly-update workflow. It's a viable choice for a single landlord with a small portfolio. Once you scale to multiple properties, joint ownership, or a mix of property + self-employment income, the workflow gets harder. SmartBooks is built for the multi-property and the firm-managed cases.
What about firms — does FreeAgent have a practice-management layer?
FreeAgent has 'FreeAgent for Practices' for accountants managing client books. It works, especially for firms with a NatWest-banked client base. The depth — review queues, role-based approval, audit-grade submission trails, multi-entity workspace — is below what SmartBooks targets. Firms running 30+ clients usually outgrow FreeAgent's practice tools, often onto Xero. SmartBooks is built to be the next step up from there.
Is SmartBooks cheaper than FreeAgent?
Not on the headline. FreeAgent is free for NatWest customers and £19/mo otherwise. SmartBooks Business is anchored at £29/mo. The fair comparison is total stack cost: FreeAgent + accounts-production tool + receipt-capture (if needed) vs SmartBooks. On that basis SmartBooks is competitive but the cost-only argument doesn't win against the NatWest free bundle. The argument for SmartBooks is workflow depth, not price.
Can my accountant work with me on FreeAgent?
Yes — FreeAgent has a free 'Practice' login for your accountant. The same applies to SmartBooks: your accountant joins as a firm user at no extra cost during pilot. If your current accountant is a FreeAgent specialist and the relationship is working well, that's a real reason to stay; if your accountant is recommending you move because of capability gaps, SmartBooks is worth a demo.
How would I migrate from FreeAgent to SmartBooks?
Same shape as switching from Xero or QuickBooks — chart of accounts mapped, contacts imported, opening balances at the cut-over date, up to 24 months of historic transactions for continuity. Bank feeds re-established via Yapily. The cohort 1 (pilot) migration is concierge and free. Plan the cut-over for the start of a VAT quarter, with 1–2 weeks of parallel-running.
A note
FreeAgent, NatWest, Royal Bank of Scotland, Ulster Bank and Mettle are trademarks of their respective owners — mentioned here for honest comparison, not endorsed by them. The free-bundle terms are accurate at the time of writing; confirm with NatWest before relying on them.
Make the call on workflow, not just price.
Book a 15-minute demo if you're outgrowing FreeAgent — multi-property landlord, firm with 30+ clients, or any case where receipts and approvals are slowing you down.
Running a firm? Book a 15-minute demo.