FreeAgent vs Gusto
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.
Gusto
Gusto is a full-service payroll platform built for small businesses in the US. It handles payroll taxes automatically, offers employee benefits administration, and includes onboarding tools that make it easy to bring on new hires. Gusto is known for its clean interface and transparent pricing, making it a top choice for founders managing payroll for the first time.
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
- ✓Automatic federal, state, and local tax filing saves hours each month
- ✓Transparent flat-rate pricing with no hidden fees
- ✓Excellent onboarding flow with offer letters and e-signatures
- ✓Strong benefits administration including health, dental, and 401k
Cons
- ✗International payroll is limited and requires third-party tools
- ✗Can get expensive as headcount grows beyond 50 employees
- ✗Reporting and analytics are basic compared to enterprise tools
FreeAgent vs Gusto: Side by Side
| Factor | FreeAgent | Gusto |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | $12/mo | $40/mo + $6/person |
| Best For | UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools | Small businesses under 100 employees wanting full-service payroll with benefits |
| Our Pick | — | — |
FreeAgent Features
- ✓Invoicing
- ✓expense management
- ✓bank feeds
- ✓time tracking
- ✓project management
- ✓self-assessment tax returns
- ✓VAT returns
- ✓payroll
- ✓financial reporting
- ✓mobile app
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Pricing Comparison
Our Take
Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
Best For
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Also Consider
If neither FreeAgent nor Gusto 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 Gusto?
FreeAgent is best for uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits.
Which is better, FreeAgent or Gusto?
Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
How much does FreeAgent cost?
FreeAgent starts at $12/mo. Pricing model: Paid.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
Who should use FreeAgent?
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits