Tool Review · Updated 2026-04
Coconut
Coconut is a compelling option for sole traders and landlords who want the simplest possible setup — bank account plus MTD ITSA software in one place at £7.99/month. The automatic categorisation from a Coconut account is genuinely impressive.
No commercial relationship — Coconut is featured on editorial merit alone.
Verified April 2026 · Source: GOV.UK
Coconut and MTD ITSA
Coconut takes a different approach to MTD ITSA compliance: combine a business bank account with built-in accounting software so that income and expenses categorise themselves automatically. For sole traders willing to switch banks, this reduces the quarterly submission workload significantly.
MTD ITSA Rollout Phases
- Phase 1 — April 2026 Live ✓ Supported
Income over £50,000
- Phase 2 — April 2027 ✓ Supported
Income over £30,000
- Phase 3 — April 2028 ✓ Supported
Income over £20,000
Phase support verified against GOV.UK software finder . Always confirm with the software provider before your obligation date.
GOV.UK verification: Coconut’s MTD ITSA recognition is listed on the GOV.UK software finder. Status correct as of April 2026.
Verified April 2026 · Source: GOV.UK
No commercial relationship (at launch): Coconut’s affiliate programme status is unconfirmed at MTDStack’s launch date. This review is independent.
The bank account advantage
The key difference with Coconut is automatic transaction categorisation from a Coconut business bank account. When your income and expenses flow through a Coconut account, the app categorises them into HMRC’s self-employment and property income categories automatically. You review, correct where needed, and submit at the end of each quarter.
This is genuinely simpler than importing bank feeds into a separate accounting tool — particularly for landlords whose rental income is predictable and straightforward to categorise.
Screenshot: Coconut MTD ITSA submission
Coconut’s quarterly update interface for MTD ITSA — reviewed April 2026.
Using Coconut with an existing bank account
If you do not want to switch your main bank account, Coconut Premium (£7.99/month) still lets you connect external bank accounts via open banking. The automatic categorisation is less comprehensive without a Coconut account, but the MTD ITSA submission workflow remains available.
At £7.99/month, Coconut Premium is one of the cheapest paid routes to full MTD ITSA compliance.
MTD ITSA Phase Support
MTD ITSA Rollout Phases
- Phase 1 — April 2026 Live ✓ Supported
Income over £50,000
- Phase 2 — April 2027 ✓ Supported
Income over £30,000
- Phase 3 — April 2028 ✓ Supported
Income over £20,000
Phase support verified against GOV.UK software finder . Always confirm with the software provider before your obligation date.
Coconut uniquely combines a business bank account with MTD ITSA-ready accounting. Affiliate status unconfirmed at MTDStack launch — no affiliate link at this time.
Landlord support: Dedicated landlord support with property income categories. Bank account auto-categorises rental income. Well-suited to simple property portfolios alongside self-employment income.
CIS support: No dedicated CIS functionality. Not recommended for CIS subcontractors.
Pricing (GBP)
| Plan | Price/mo | Contacts | |
|---|---|---|---|
| Free | £0 | Free plan with basic tracking (Premium for MTD ITSA) | Get free → |
| Free | Free | Get started → | |
| Premium | £7.99/mo | Get started → |
Prices shown are monthly and exclude VAT. Coconut Premium is among the cheapest paid options with MTD ITSA support. Affiliate status unconfirmed at launch.
Last verified: April 2026
What we like
- + HMRC-recognised for all three MTD ITSA phases
- + Bank account + accounting in one app — fewer data entry steps
- + Automatic income/expense categorisation from bank feeds
- + Dedicated landlord income categories
- + Premium at £7.99/month is one of the cheapest paid options
What we don't like
- − Affiliate status unconfirmed at launch
- − Switching to a new bank account is a friction barrier
- − Smaller feature set than full accounting platforms
- − Smaller UK accountant community
- − Relatively new — less battle-tested than Xero or QuickBooks
Who it's best for
- ✓ Sole traders who want bank account + MTD ITSA in one product
- ✓ Simple buy-to-let landlords wanting automatic rental income categorisation
- ✓ Users migrating from spreadsheets who want maximum automation
Not ideal if
- ✗ CIS subcontractors
- ✗ Complex businesses needing full accounting features
- ✗ Users committed to their existing bank who do not want to switch