Why Landlords Are Comparing Provestor for Landlords and Coconut for MTD
From 6 April 2026, landlords whose qualifying gross income from property and self-employment exceeded £50,000 in the 2024/25 tax year must comply with Making Tax Digital for Income Tax. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Once in scope, the HMRC online Self Assessment filing service is no longer an option: you must use HMRC-recognised software to keep digital records and submit four quarterly updates plus a final declaration every year.
Provestor for Landlords and Coconut are two of the HMRC-recognised products landlords are comparing as they prepare for these changes. Both meet the compliance baseline. But they approach MTD very differently, and getting that choice wrong means either paying for things you do not need or using software that does not handle your landlord tax position correctly.
This article compares the two products strictly through the lens of MTD compliance: what each one does at every stage of the quarterly process, where each falls short for landlords, and which is the stronger MTD choice depending on your situation.
Provestor for Landlords vs. Coconut at a Glance
Provestor for Landlords is a HMRC-recognised, landlord-specialist MTD platform built by property accountants. It automates the landlord-specific parts of MTD compliance that general software leaves to you: Section 24 mortgage interest restriction, joint ownership profit splits and letting agent data feeds. It is sold in three MTD tiers - DIY, Assisted and Done For You - starting from £69/year (year-one discounted, nothing to pay until 6 April 2026).
Coconut is a HMRC-recognised cloud bookkeeping app from the GoSimpleTax family, designed for sole traders and landlords. It connects to your bank via Open Banking, categorises transactions automatically and prepares your quarterly updates for MTD submission. It does not include automated Section 24 handling or joint ownership splits. It is priced from £99.99/year inc. VAT or free for up to 24 months via the Zempler bank partnership.
For MTD compliance alone: Provestor for Landlords handles more of the landlord-specific tax calculation automatically. Coconut handles the bookkeeping workflow more automatically. The right choice depends on where your complexity lies.
MTD Compliance Comparison: Provestor for Landlords vs. Coconut
MTD Requirement | Provestor for Landlords | Coconut |
|---|---|---|
HMRC MTD ITSA recognised | Yes | Yes |
Digital record keeping | AI categorises uploaded statements and receipts | Open Banking feeds; auto-categorises transactions |
Quarterly updates to HMRC | Yes — you review and submit (DIY) or accountant handles (Assisted/DFY) | Yes — prepared from categorised transactions, you submit |
Final declaration (year-end) | Included in Assisted and Done For You; self-submit on DIY | Included in +Self Assessment and Full plans via GoSimpleTax |
Section 24 mortgage interest | Automated — calculated as 20% credit each quarter | Not advertised as an automated feature |
Joint ownership income splits | Automated — set once, applied every quarter | Not advertised as an automated feature |
Multiple properties | Yes | Yes |
MTD-specific accountant review | Yes — built into Assisted plan (£199/year) | No — software only |
Fully managed MTD filing | Yes — Done For You plan (£399/year, up to 10 properties) | No |
Letting agent data feeds | Yes — with partner agents | No |
MTD quarterly deadline tracking | Yes — tax calendar with all deadlines | Yes — real-time tax estimate updated quarterly |
HMRC tax estimate after each quarter | Yes | Yes |
Starting price for MTD submission | £69/year (DIY, year one) | £129.99/year inc. VAT (+MTD plan) |
How Each Product Handles The Four Stages of MTD ITSA
MTD for Income Tax has four distinct stages every quarter: keeping digital records, categorising income and expenses, submitting the quarterly update and filing the final year-end declaration. Below is how Provestor for Landlords and Coconut handle each one.
Stage 1: Keeping digital records
HMRC requires digital records to be kept as a condition of MTD compliance. Both products meet this requirement, but through different approaches.
Provestor for Landlords: You upload bank statements and receipts after each period. The platform's property-tax AI reads each line and categorises it: rent, letting agent fee, repair, insurance, mortgage payment automatically. If your letting agent is a Provestor for Landlords integration partner, rent and fees flow in directly, removing manual uploads entirely. The record is structured around how a landlord's accounts actually look.
Coconut: You connect your bank account via Open Banking and transactions appear in real time. Coconut categorises them with HMRC-friendly tags as they arrive. You capture receipts by photographing them in the mobile app. The record is maintained continuously rather than uploaded at intervals.
MTD verdict — Stage 1: Coconut's Open Banking model gives you a more real-time record. Provestor for Landlord's upload model better suits landlords who receive formal agent statements. Neither approach is more or less compliant; the better fit depends on how your income arrives.
Stage 2: Categorising income and expenses correctly for HMRC
This is where the products diverge most sharply for landlords. HMRC's MTD for Income Tax has specific rules about how landlord income and expenses must be reported - and two of the most common landlord scenarios require non-obvious tax treatment.
Section 24 mortgage interest restriction: Since April 2020, residential landlords cannot deduct mortgage interest as an expense. Instead, they receive a 20% tax credit. Many general accounting apps still record mortgage interest as an expense, which produces an incorrect quarterly update. Provestor for Landlords asks for your mortgage details once and applies the correct 20% credit treatment automatically every quarter.
Joint ownership income splits: If you jointly own a rental property, HMRC expects the income and expenses reported in your MTD quarterly update to reflect your ownership share only. Provestor for Landlords applies this split automatically once you enter your ownership percentage. Coconut does not advertise this as an automated feature.
For both products, standard income and expense categories (rent, repairs, letting agent fees, insurance, utilities) are handled within their categorisation engines.
MTD verdict — Stage 2: Provestor for Landlords has a clear advantage for landlords with mortgages or jointly owned properties. Both handle standard categorisation adequately, but Section 24 and joint ownership are points where an error in categorisation creates an incorrect quarterly update — and a potential problem with HMRC.
Stage 3: Submitting the quarterly update to HMRC
Under MTD ITSA, landlords must submit four quarterly updates each year, covering income and expenses for each period. The submission deadline is the 7th of the month following the end of the quarter.
Provestor for Landlords: Once your records are categorised and reviewed, you see exactly what HMRC will receive before you submit. One click sends the quarterly update. On the Assisted plan, a Provestor for Landlords accountant reviews every return before submission and flags any errors. On Done For You, the accountant handles the submission entirely. HMRC's tax estimate for the period is retrieved after each submission.
Coconut: Your quarterly update is prepared automatically from the categorised transaction data. You review the figures and submit. HMRC's tax estimate is returned after each submission. There is no built-in accountant review step.
MTD verdict — Stage 3: Both products meet the technical requirement for quarterly submission. Provestor for Landlord's Assisted plan is the stronger option for landlords who want human oversight on each return. Coconut is more appropriate for landlords confident in their own categorisation.
Stage 4: Filing the final declaration (year-end)
After the fourth quarterly update, landlords must submit a final declaration to HMRC — the equivalent of the Self Assessment tax return under MTD - confirming total income, claiming allowances and finalising the tax position.
Provestor for Landlords: On the DIY plan, you file the final declaration yourself. On the Assisted plan, a Provestor for Landlords accountant prepares and submits the final declaration for you, included in the plan price. Done For You covers everything.
Coconut: The final declaration is included in the +Self Assessment plan (£129.99/year inc. VAT) and the Full plan (£159.99/year inc. VAT), routed through GoSimpleTax. It is not included in the Essentials plan or the +MTD plan.
MTD verdict — Stage 4: Provestor for Landlords includes the final declaration within its Assisted service at £199/year. Coconut includes it in the Full plan at £159.99/year inc. VAT. Both cover the requirement; the difference is that Provestor for Landlords includes an accountant preparing the return, whereas Coconut's is software-guided self-filing via GoSimpleTax.
MTD Pricing Compared: What Does Each Stage Cost?
Both products publish their pricing openly. The table below shows the full cost to achieve complete MTD ITSA compliance, including the final declaration, on each platform.
What you need for full MTD compliance | Provestor for Landlords cost | Coconut cost |
|---|---|---|
Digital record keeping + quarterly updates only | £69/year (DIY, year one) | £129.99/year inc. VAT (+MTD plan) |
Quarterly updates + final declaration (self-file) | £69/year (DIY includes both) | £159.99/year inc. VAT (Full plan) |
Quarterly updates + final declaration (accountant-reviewed) | £199/year (Assisted, year one) | Not available — software only |
Fully managed — accountant does everything | £399/year (Done For You, year one, up to 10 properties) | Not available |
Free MTD route | Nothing to pay until 6 April 2026 (then paid plans) | Free up to 24 months via Zempler bank partnership |
Note: Provestor for Landlords prices are shown exclusive of VAT and are year-one discounted. Standard rates from year two are £99/year DIY, £249/year Assisted and £499/year Done For You. Coconut prices are shown inclusive of VAT. A 14-day free trial with no card details required is available on all Coconut plans.
Which Is The Better MTD Software for Your Situation?
Provestor for Landlords is the stronger MTD choice if:
You have a residential mortgage and need Section 24 mortgage interest restriction applied correctly in your quarterly updates without manual calculation.
You jointly own a property and need your income and expense share split accurately for HMRC each quarter.
Your letting agent is a Provestor for Landlords partner and you want rent and fees to flow in without manual data entry.
You want a Provestor for Landlords accountant to review each quarterly update before you file, for peace of mind that the return is correct.
You want to hand the entire MTD process: records, quarterly updates and final declaration to an accountant via Done For You.
You want to set up for MTD now and pay nothing until 6 April 2026.
Coconut is the stronger MTD choice if:
You want your MTD records maintained in real time via Open Banking, without uploading statements after each period.
You want a mobile app that lets you capture receipts on your phone and see your tax position updated as transactions arrive.
Your property holdings are straightforward — no residential mortgage interest restriction to apply, no joint ownership splits needed.
You also have self-employment income and want both income streams covered in one app.
You qualify for the Zempler bank partnership and want MTD software at no cost for up to 24 months.
You want your Self Assessment and final declaration filed via the same platform on the Full plan.
MTD Limitations To Know Before You Choose
Provestor for Landlords MTD limitations:
Built specifically for landlords and property investors. If your MTD return includes self-employment income alongside property, Provestor for Landlords advises that HMRC may expect a separate app for the self-employment component.
Done For You is capped at up to 10 properties. Larger portfolios may require a different solution.
Year-one discounted pricing reverts to standard rates from year two: £99/year DIY, £249/year Assisted, £499/year Done For You.
Record keeping is based on uploading statements and documents rather than always-on Open Banking feeds, which means your real-time tax position is updated on upload rather than continuously.
Coconut MTD limitations:
Section 24 mortgage interest restriction is not advertised as an automated feature. Landlords with residential mortgages must ensure the 20% credit is handled correctly in their categorisation or risk submitting an incorrect quarterly update to HMRC.
Joint ownership profit splits are not advertised as an automated feature. Landlords co-owning properties must ensure each owner's update reflects the correct share.
There is no accountant review step built into the MTD workflow. Coconut is software only.
The end-of-year final declaration is not included in the Essentials or +MTD plans; it requires the +Self Assessment or Full plan.
The free Zempler route requires maintaining an active Zempler bank connection for up to 24 months.
HMRC Recognition and Regulatory Standing
Both products are HMRC-recognised for Making Tax Digital for Income Tax. HMRC-recognition is a non-negotiable requirement: you cannot use software to submit quarterly MTD updates unless it appears on HMRC's published compatible software list on GOV.UK. Both Provestor for Landlords and Coconut meet this requirement.
Coconut is additionally regulated by the Financial Conduct Authority as an Account Information Services Provider (AISP, FRN 931194). This is the authorisation required to provide Open Banking connections in the UK and represents a separate layer of regulatory oversight on top of HMRC recognition.
Provestor for Landlords is operated by Provestor Accounts Ltd, registered in England and Wales under company number 10510713. Its MTD service is built and supported by in-house property tax accountants.
The MTD ITSA Timeline: When Do You Need to Be Compliant?
Date | Who must comply | Qualifying income threshold |
|---|---|---|
6 April 2026 | Landlords and sole traders in scope from 2024/25 tax year | Over £50,000 gross income |
6 April 2027 | Additional landlords and sole traders in scope from 2025/26 | Over £30,000 gross income |
6 April 2028 | Remaining landlords and sole traders in scope from 2026/27 | Over £20,000 gross income |
Qualifying income includes gross rental income and gross self-employment income combined, before any deductions. HMRC will use your most recent Self Assessment return to identify whether you are in scope and will write to affected taxpayers ahead of their start date.
MTD Verdict: Which Should Landlords Choose?
Both Provestor for Landlords and Coconut are HMRC-recognised and will keep you compliant with the quarterly submission and record-keeping requirements of MTD for Income Tax. The decision comes down to how much of the compliance work each product does for you.
Provestor for Landlords is the stronger MTD product for landlords with residential mortgages or jointly owned properties. Section 24 and joint ownership splits are two of the most common points of error in landlord MTD returns, and Provestor for Landlords handles both automatically. Add the Assisted plan and you have a Provestor accountant checking every quarterly update before it goes to HMRC, a level of MTD oversight that Coconut does not offer.
Coconut is the stronger MTD product for landlords whose properties are mortgage-free or solely owned, who want an always-on mobile bookkeeping experience backed by Open Banking feeds, or who also have self-employment income to report. The Zempler free route makes it a compelling option for landlords in the lower income tiers who will be coming into MTD scope in 2027 or 2028.
Landlords with portfolios above ten properties, complex multi-owner structures or HMO units are likely to need specialist advice beyond what either product provides on its own.
Both Provestor for Landlords and Coconut are HMRC-recognised and technically compliant for MTD, but compliance is the floor, not the finish line.
For landlords with residential mortgages or jointly owned properties, getting Section 24 wrong or miscalculating an ownership split means submitting incorrect quarterly updates to HMRC. Provestor for Landlords handles both automatically. Coconut does not. That is not a minor feature gap; it is a material MTD risk.
For landlords with simple, mortgage-free or solely owned properties, Coconut's real-time bank feeds and mobile-first workflow make MTD straightforward and, via Zempler, potentially free.
Choose based on your actual tax position, not just the price tag.
