FreeAgent vs Paymo
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.
Paymo
Paymo is a project management and time tracking tool built for freelancers and small agencies. It combines task management, time tracking, invoicing, and resource scheduling in one platform.
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
- ✓Built-in time tracking and invoicing
- ✓Good resource scheduling
- ✓Ideal for client-facing work
- ✓Affordable pricing
- ✓Clean interface
Cons
- ✗Not suited for large enterprise teams
- ✗Limited automation
- ✗Smaller integration ecosystem
- ✗Reporting less robust than competitors
FreeAgent vs Paymo: Side by Side
| Factor | FreeAgent | Paymo |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | Project Management |
| Pricing Model | Paid | Freemium |
| Starting Price | $12/mo | Contact for pricing |
| Best For | UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools | Freelancers and small agencies needing project management combined with time tracking and client invoicing |
| Our Pick | — | — |
FreeAgent Features
- ✓Invoicing
- ✓expense management
- ✓bank feeds
- ✓time tracking
- ✓project management
- ✓self-assessment tax returns
- ✓VAT returns
- ✓payroll
- ✓financial reporting
- ✓mobile app
Paymo Features
- ✓Project management
- ✓time tracking
- ✓invoicing
- ✓expense tracking
- ✓team collaboration
- ✓client portal
Pricing Comparison
Our Take
Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Choose Paymo if freelancers and small agencies needing project management combined with time tracking and client invoicing.
Best For
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Best For
Freelancers and small agencies needing project management combined with time tracking and client invoicing
Also Consider
If neither FreeAgent nor Paymo 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 Paymo?
FreeAgent is best for uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Paymo is best for freelancers and small agencies needing project management combined with time tracking and client invoicing.
Which is better, FreeAgent or Paymo?
Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Choose Paymo if freelancers and small agencies needing project management combined with time tracking and client invoicing.
How much does FreeAgent cost?
FreeAgent starts at $12/mo. Pricing model: Paid.
How much does Paymo cost?
Visit Paymo website for current pricing.
Who should use FreeAgent?
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Who should use Paymo?
Freelancers and small agencies needing project management combined with time tracking and client invoicing