The Best Accounting Software for Side Hustlers in 2025: Why FreeAgent Could Be Your Secret Weapon
Why Side Hustlers Need Accounting Software in 2025
Whether you sell candles on Etsy, freelance after hours, or run a weekend food stall — if you’re self-employed, even part-time, you’ve got tax responsibilities.
And in 2025, those responsibilities are getting more digital.
💡 Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is coming. READ MORE HERE
If your total self-employed income is over £30,000, you’ll need to use software to keep digital records and send quarterly updates to HMRC starting April 2027 (or April 2026 if you’re over £50k).
Even if you’re not yet required to comply with MTD, using accounting software early can:
Save you hours of admin
Give you instant insights into your earnings
Help you plan for tax (and avoid nasty surprises)
Make year-end filing smoother and stress-free
Why We Recommend FreeAgent
There are lots of accounting tools out there — but FreeAgent stands out for side hustlers and sole traders in the UK. Here's why:
✅ 1. It’s Free with Certain Bank Accounts
If you have a Mettle, NatWest, or RBS business account, you can get FreeAgent completely free. No catch. That’s normally a £150+ annual saving.
📊 2. Simple Dashboard and Tax Timeline
FreeAgent shows you a real-time tax timeline, so you always know:
What taxes are due
When payments are coming up
How much to save each month
Perfect for side hustlers juggling unpredictable income.
📦 3. Invoicing and Expense Tracking
Send professional invoices in a few clicks and snap receipts with the app. You can tag expenses, track mileage, and even link your bank feed for real-time updates.
🔁 4. Ready for MTD for ITSA
FreeAgent is officially HMRC-recognised for Making Tax Digital. That means you’re already future-proofed for the 2026–27 changes.
How Hustle Mate Can Help You Use FreeAgent
Even the best software can feel overwhelming at first — that’s where Hustle Mate steps in:
💬 Help You Understand the Setup
We’ll walk you through connecting your bank, setting up categories, and recording your first sale or expense.
🧾 Explain the Tax Jargon
Terms like “capital allowance,” “accruals basis,” or “PAYE tax code” don’t need to be scary — we’ll break them down in plain English.
🤝 Support When You Need It
Inside our community, you can ask a Chartered Accountant (that’s me!) questions like:
“How do I log income from a one-off sale?”
“Do I need to track my mileage if I use the flat rate?”
“I opened a Mettle account — what now?”
We’re YOUR mate when it comes to managing money and getting MTD-ready.
FAQs
Q: Do I have to use accounting software in 2025?
Not yet — but from April 2026 or 2027, MTD for ITSA will require it if your self-employed income is over the threshold.
Q: Is FreeAgent hard to learn?
Nope — it’s beginner-friendly and has a clean dashboard. Plus, Hustle Mate offers walkthroughs and plain-language help.
Q: What if I already use spreadsheets?
That’s totally fine — but if you’re edging closer to £30k+ income, it’s worth trialling software now, while things are calm.
Final Thoughts: Start Smart, Stay Organised
FreeAgent is a brilliant, UK-specific solution that fits right into a side hustler’s world — especially if you can get it free through your bank.
And when you pair it with Hustle Mate’s support, you’ve got the tools and the backup you need to feel confident and in control.
