Coconut, the North West-based fintech company, has been recognised as an approved software provider of HMRC’s upcoming Making Tax Digital for Income Tax (MTD IT).
As HMRC rolls out significant changes to how sole traders, freelancers and landlords submit their tax returns, Coconut’s simple, intuitive software stands out as a solution designed to make things easier for sole traders and landlords.
From 6 April 2026, HMRC is shaking up the way tax returns work for around one million sole traders and landlords earning over £50,000 per year. A further 1.2 million will be affected in 2027, when the income threshold drops to £30,000, and another million in 2028, when it drops again to £20,000.
Under Making Tax Digital for Income Tax, they’ll be required to keep digital records and submit quarterly updates using compatible software. This replaces the traditional once-a-year Self Assessment tax return with a more regular, digital-first process.
While the changes aim to improve tax compliance and reduce errors, the switch from Self Assessment to Making Tax Digital for Income Tax can feel overwhelming for those not already using digital tools.
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Coconut has been purposefully designed as a dedicated MTD solution for Income Tax for sole traders and landlords. The app and desktop software solution has been designed to make the switch quick, painless and worry-free. Unlike many accounting platforms overloaded with features – that are better suited to larger businesses – Coconut provides a simple, intuitive experience.
Users can track their income and expenses in real time, snap and store receipts digitally, raise and manage professional invoices with ease and always see how much tax they owe. Submitting a Self-Assessment tax return or complying with MTD becomes straightforward and stress-free. With both mobile and desktop access, users can stay on top of their finances from anywhere, without needing to be an accounting expert.
James Cryne, Director at Coconut, said: “Sole traders and landlords preparing for the switch can start using Coconut today to benefit from simple invoicing, digital receipt capture, and real-time tax updates, all designed to save time, reduce stress and help them stay compliant as the new MTD rules come into force.”
