Gusto vs FreeAgent
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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.
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.
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
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
Gusto vs FreeAgent: Side by Side
| Factor | Gusto | FreeAgent |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Accounting Software |
| Pricing Model | Paid | Paid |
| Starting Price | $40/mo + $6/person | $12/mo |
| Best For | Small businesses under 100 employees wanting full-service payroll with benefits | UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools |
| Our Pick | — | — |
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
FreeAgent Features
- ✓Invoicing
- ✓expense management
- ✓bank feeds
- ✓time tracking
- ✓project management
- ✓self-assessment tax returns
- ✓VAT returns
- ✓payroll
- ✓financial reporting
- ✓mobile app
Pricing Comparison
Our Take
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose FreeAgent if 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
Best For
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Also Consider
If neither Gusto nor FreeAgent is the right fit, Multiplier is worth evaluating.
Multiplier
Startups and SMBs hiring internationally on a budget
From $40/contractor/mo
Frequently Asked Questions
What is the difference between Gusto and FreeAgent?
Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits. FreeAgent is best for uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools.
Which is better, Gusto or FreeAgent?
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
How much does FreeAgent cost?
FreeAgent starts at $12/mo. Pricing model: Paid.
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits
Who should use FreeAgent?
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools