FreeAgent vs Employment Hero
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
FreeAgent
FreeAgent is a cloud accounting platform designed specifically for freelancers, contractors, and small businesses in the UK. It offers automatic bank feeds, invoicing, expense management, and self-assessment tax return preparation. FreeAgent is particularly popular with UK freelancers and contractors for its excellent handling of UK tax requirements including Self Assessment and VAT returns.
Employment Hero
Employment Hero is an all-in-one HR, payroll, and benefits platform with a strong presence in Australia and New Zealand. It offers a free HR plan alongside paid payroll and benefits modules, making it accessible for businesses at any stage. Employment Hero also operates a job marketplace called Swag for employees.
Pros
- ✓Excellent UK tax compliance including Self Assessment and VAT returns
- ✓Designed specifically for freelancers and contractors
- ✓Clean and easy to use interface
- ✓Automatic bank feeds save significant time
Cons
- ✗Primarily suited for UK market — limited value for non-UK businesses
- ✗Less feature-rich than QuickBooks for complex business needs
- ✗Smaller integration ecosystem than larger competitors
- ✗Not suitable for larger businesses with complex accounting needs
Pros
- ✓Free HR plan available with core employee management features
- ✓Strong compliance tools for Australian and NZ employment law
- ✓All-in-one platform covering HR, payroll, and benefits
- ✓Employee benefits marketplace with discounts and perks
Cons
- ✗Payroll module costs extra and is best suited for AU/NZ companies
- ✗Limited support and compliance coverage outside Australia and New Zealand
- ✗Some users report the platform can feel complex to navigate
FreeAgent vs Employment Hero: Side by Side
| Factor | FreeAgent | Employment Hero |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | HR Software |
| Pricing Model | Paid | Freemium |
| Starting Price | $12/mo | Free |
| Best For | UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools | Australian and NZ businesses needing full HR suite |
| Our Pick | — | — |
FreeAgent Features
- ✓Invoicing
- ✓expense management
- ✓bank feeds
- ✓time tracking
- ✓project management
- ✓self-assessment tax returns
- ✓VAT returns
- ✓payroll
- ✓financial reporting
- ✓mobile app
Employment Hero Features
- ✓HR management
- ✓payroll
- ✓benefits
- ✓recruitment
- ✓learning
- ✓employee engagement
Pricing Comparison
Our Take
Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Choose Employment Hero if australian and nz businesses needing full hr suite.
Best For
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Best For
Australian and NZ businesses needing full HR suite
Also Consider
If neither FreeAgent nor Employment Hero is the right fit, Dext is worth evaluating.
Dext
Bookkeepers, accountants, and businesses with high receipt volumes wanting to eliminate manual data entry
From $15/mo
Frequently Asked Questions
What is the difference between FreeAgent and Employment Hero?
FreeAgent is best for uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Employment Hero is best for australian and nz businesses needing full hr suite.
Which is better, FreeAgent or Employment Hero?
Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Choose Employment Hero if australian and nz businesses needing full hr suite.
How much does FreeAgent cost?
FreeAgent starts at $12/mo. Pricing model: Paid.
How much does Employment Hero cost?
Employment Hero starts at Free. Pricing model: Freemium.
Who should use FreeAgent?
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Who should use Employment Hero?
Australian and NZ businesses needing full HR suite