FreeAgent vs Wave Comparison 2026
FreeAgent is UK-only accounting that files the self assessment and VAT return straight to HMRC, at £33 a month unless you bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle, where it is free. Wave is free bookkeeping and invoicing for anyone, in any country, with a $19-a-month Pro tier for automation and receipt scanning. The choice turns on jurisdiction, not price: one files a UK return and nothing else matters if you are outside the UK, the other has no filing feature at all.
At a glance
- Wave starts cheaper, at $19.
- Only Wave has a free tier.
Side by side
FreeAgent | Wave | |
|---|---|---|
| Starting price (they differ) | From $33 | From $19 |
| Pricing model (they differ) | Free trial, then paid | Free plan, paid tiers |
| Free tier (they differ) | No | Yes |
| Billing | Monthly or annual | Monthly or annual |
| Free trial (they differ) | 30 days | None |
FreeAgent
Accounting built around UK sole traders
FreeAgent covers invoices, expenses, VAT returns and the self assessment filing a UK sole trader has to do anyway, and it files them with HMRC directly. Bank feeds and receipt capture keep the bookkeeping from piling up into an annual weekend of dread. It is UK-only, so it is no use to anybody filing anywhere else.
Our note
The bank-account route is worth checking before paying. If you already bank with NatWest or hold a Mettle account, this is a full accounting package for nothing, and it is the only offer of that shape in the category.
Wave
Invoicing and bookkeeping that costs nothing
Wave does invoices, receipts and double-entry bookkeeping for free, and earns on card payments and on a paid tier that automates the parts you would otherwise do by hand. For a sole trader sending a dozen invoices a year it is the cheapest honest answer. Payroll and the advisor service exist in some countries only, which is worth checking before a whole tax year lives in it.
Our note
Why people weigh these two
- Wave instead of FreeAgent
- Wave handles invoicing and bookkeeping on a free plan, with paid features from $19.
- FreeAgent instead of Wave
- FreeAgent is built specifically around UK sole traders, at $33 with no free tier, worth the extra cost if the accounting rules are the UK's own.
Which one should you pick
Pick FreeAgent if you are a UK sole trader or small limited company and want VAT and self assessment filed straight to HMRC from the same app that does the bookkeeping. £33 a month is the sticker price, but banking with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle makes it free for as long as you hold the account, worth checking before you pay anything.
Pick Wave if you are outside the UK or do not need HMRC filing at all. Starter is free with no invoice cap and no time limit, real double-entry bookkeeping rather than a stripped demo, and Pro at $19 a month adds automation and receipt scanning once the free plan starts to feel manual. Confirm payroll support for your country before relying on it beyond invoicing.
Common questions
- Is FreeAgent really free?
- Only if you bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle, in which case it is free for as long as you hold the account. Everyone else pays £33 a month, or £330 a year, excluding VAT, after a 30-day trial. Wave's Starter plan is free for anyone, with no bank tie-in required.
- Does Wave file taxes the way FreeAgent does?
- No. FreeAgent submits self assessment and Making Tax Digital VAT returns directly to HMRC as part of the product, which is the reason it exists. Wave has no equivalent filing feature on either its free plan or its $19-a-month Pro plan.
- Can somebody outside the UK use FreeAgent?
- Not usefully. Its tax logic is built around HMRC, so a creator filing anywhere else gets bookkeeping without the filing that justifies the price. Wave works in more countries, though payroll and the Wave Advisors service are limited to some of them.
- What does Wave charge beyond the free plan?
- Pro is $19 a month, or $190 a year, and adds automation and receipt scanning, plus card processing at 2.9 percent plus 60 cents (3.4 percent for Amex) on both plans. FreeAgent has no per-transaction card fee but charges add-ons: unlimited receipt capture at £5 a month and an Amazon connection at £6.
Ratings are the average of reviews readers left. The facts are stated by each tool’s own listing and are not verified by CloutStack. How we make money.