Both platforms are confirmed live for MTD. Coconut was officially recognised by HMRC as an approved MTD for Income Tax software provider, confirmed via a press release on its own website (18 March 2026). QuickBooks has been HMRC-recognised for MTD for Income Tax since before the April 2026 mandatory start.
QuickBooks and Coconut are both HMRC-recognised for Making Tax Digital for Income Tax and both are live for quarterly submissions. Their design philosophies, however, are fundamentally different. QuickBooks is a full cloud accounting platform covering businesses of all sizes, with payroll, multi-currency, inventory, CIS, and a five-tier pricing structure. Coconut, trading as !Coconut, is deliberately simple: a tax app designed specifically for sole traders, landlords, and CIS subcontractors who want to manage their finances and meet MTD obligations without learning accounting software. Coconut's own director describes it as deliberately straightforward, unlike some accounting software that is packed with features for big businesses.
This article draws exclusively on each provider's own published pages, HMRC's published guidance, and Coconut's help centre documentation, all verified as at July 2026. Prices are stated exclusive of VAT unless noted otherwise.
The MTD for Income Tax mandate: The Essentials
Making Tax Digital for Income Tax became mandatory on 6 April 2026 for sole traders and landlords with combined qualifying gross income above £50,000 in the 2024 to 2025 tax year. The mandate extends to those with qualifying income above £30,000 from April 2027, and above £20,000 from April 2028.
Qualifying taxpayers must keep digital records, submit four quarterly updates due by 7 August, 7 November, 7 February, and 7 May each year, and file a Final Declaration (referred to as an MTD year-end tax return within Coconut) by 31 January. HMRC has paused penalty points for late quarterly submissions during 2026 to 2027. Financial penalties for late Final Declarations apply from April 2026. Employment income, dividends, savings interest, and capital gains do not count toward the qualifying income threshold.
QuickBooks and MTD
HMRC Recognition and Plan Structure
QuickBooks Online is HMRC-recognised for MTD for VAT and MTD for Income Tax across all five paid UK plans: Sole Trader Plus (£10/month), Simple Start (£16/month), Essentials, Plus, and Advanced. Every paid plan supports the full MTD ITSA workflow including digital records, quarterly updates, and the Final Declaration.
Income Types and VAT
QuickBooks covers UK property income, self-employment income, and foreign property income within a single subscription. MTD for VAT is available on Simple Start (£16/month) and above; Sole Trader Plus does not include VAT. Coconut has no VAT submission capability at any tier; VAT-registered clients must use a different platform for MTD for VAT.
Important: QuickBooks requires a separate account for each income source. A landlord who also operates a sole-trade business must maintain two QuickBooks accounts and submit quarterly updates from each separately. Source: quickbooks.intuit.com/learn-support, April 2026. Coconut, by contrast, manages self-employment and property income streams together within a single account.
AI and Accounting Depth
QuickBooks includes Intuit Intelligence AI features on Simple Start and above, covering automated categorisation, VAT AI pre-file checks, and anomaly detection. Sole Trader Plus does not include Intuit Intelligence features per Intuit's own pricing page. QuickBooks also supports full double-entry accounting, a nominal ledger, accruals basis, payroll (add-on), CIS, inventory, multi-currency, and project tracking on various plans.
Practice Tools
QuickBooks Online Accountant provides a centralised multi-client agent-level filing dashboard. Accountants managing client billing receive a 50% discount on Sole Trader Plus subscriptions. Coconut has an Accountant Portal through which accountants can access client records in real time, but does not offer an equivalent centralised multi-client MTD filing dashboard.
What QuickBooks Does Not Offer
QuickBooks has no built-in Self Assessment filing tool. For clients not yet in scope for MTD who still need to file a Self Assessment return, a separate tool is required alongside QuickBooks. QuickBooks also has no permanent free plan, and payroll is a paid add-on, not included on any core plan.
Coconut and MTD
HMRC Recognition: Confirmed March 2026
Coconut was officially recognised by HMRC as an approved MTD for Income Tax software provider, confirmed in a press release published on its own website on 18 March 2026. Coconut's team includes ex-HMRC staff and tax specialists who work closely with HMRC to stay aligned with MTD requirements. The platform covers sole traders, landlords, CIS subcontractors, and agents.
The Four Plans: What Each Covers for MTD
Critical plan distinction: The Bookkeeping plan (£99.99/year) does not include direct HMRC MTD submissions. Quarterly and annual MTD submissions require the MTD filing plan (£129.99/year) or above. Landlords and sole traders who need to file quarterly MTD updates must be on the MTD filing plan or the Full plan. Source: help.getcoconut.com/en/articles/14354898-understanding-coconut-plans, April 2026.
Bookkeeping: £99.99/year (or £16.99/month). Covers bank feeds, expense categorisation, receipt capture, invoicing, profit and loss. Does not include MTD quarterly submissions. Suitable for tracking and preparation before MTD submission is needed.
MTD filing: £129.99/year (or £21.99/month). Everything in Bookkeeping, plus quarterly MTD updates to HMRC, the MTD year-end tax return (Final Declaration), real-time tax estimates, and MTD expert support. Does not include Self Assessment filing.
+Self Assessment: £129.99/year. Everything in Bookkeeping, plus Self Assessment filing via the GoSimpleTax integration. Does not include MTD quarterly submissions.
Full: £159.99/year (annual only). Everything combined: bookkeeping, MTD quarterly submissions, MTD year-end, and Self Assessment filing in one subscription. This is the transitional year plan, covering both the outgoing Self Assessment return and the new MTD quarterly obligations simultaneously.
A 14-day free trial is available on all plans with no card details required.
The Zempler Free-for-Two-Years Offer
Coconut has a partnership with Zempler, a digital business bank. Sole traders who open a free Zempler business bank account within the Coconut app receive 24 months of free access to Coconut's software, saving up to £238 per Coconut's own press release. The bank account can be opened directly within the Coconut sign-up journey.
Verify before advising: Coconut's published pages confirm the Zempler partnership and the two-year free offer. The specific plan tier included in the free offer and any eligibility conditions should be confirmed directly with Coconut before advising clients, as these terms are not fully detailed on published pages as at July 2026.
Multiple Income Streams In One Account
Coconut manages self-employment income and property income streams together within a single account. Users can categorise income and expenses from sole trade and property income sources and push data into their MTD reports or Self Assessment return directly. This is a structural advantage over QuickBooks Sole Trader Plus, which requires a separate account per income source.
Self Assessment Filing: The GoSimpleTax Integration
Coconut and GoSimpleTax are owned by the same directors and operate as complementary products. Coconut's +Self Assessment and Full plans include SA filing via GoSimpleTax, covering the main supplementary pages including SA105 (property income) and SA106 (foreign income). For clients in the transitional year who must file both a Self Assessment return and begin quarterly MTD submissions simultaneously, the Full plan at £159.99/year covers both obligations in a single annual subscription.
CIS Subcontractor Support
Coconut explicitly lists CIS subcontractors as a supported user type alongside sole traders and landlords, with the ability to track CIS deductions and offsets and submit MTD-compliant returns for mixed income. QuickBooks also supports CIS, from Simple Start on the standard plans, and includes CIS on Sole Trader Plus at no extra cost. Both platforms cover CIS within their MTD offering.
Accountant Access
Coconut has a dedicated Accountant Portal allowing accountants and bookkeepers to access client records in real time, share bookkeeping data, and support MTD submissions. Coconut notes that its HMRC recognition is good news for Accountant and Bookkeeper Partners already using Coconut for sole trader and landlord clients. The portal provides real-time data sharing without the need for the client to download and share bank statements.
Support and Human Expertise
Coconut offers 24/7 AI support within the app, with human support from a team that includes ex-HMRC staff and tax specialists with 30-plus years of experience. Human support is available Monday to Friday within a couple of hours, and on weekends during deadline season. Coconut also provides step-by-step MTD guides and in-app prompts to guide users through the submission process without accounting expertise.
Side-by-Side Comparison
All data is from each provider's own published pages and help centre documentation, verified as at July 2026.
Feature | QuickBooks | Coconut (!Coconut) |
|---|---|---|
HMRC MTD ITSA recognition | Yes, confirmed, all paid plans | Yes, confirmed 18 March 2026 |
MTD live submission status | Live and confirmed | Live and confirmed |
Product category | Full cloud accounting platform | Simple tax and bookkeeping app |
Designed for | Businesses of all sizes; sole traders, landlords, SMEs | Sole traders, landlords, and CIS subcontractors only |
Self-employment income | Yes, all plans | Yes, all plans |
UK property income | Yes, all plans | Yes, all plans |
Multiple income streams | Yes, but requires separate account per source | Yes, managed within one account |
Foreign property income | Yes (UK-resident landlords) | SA106 via GoSimpleTax on +Self Assessment and Full plans; MTD quarterly scope for foreign property not explicitly confirmed |
CIS subcontractor support | Yes, Sole Trader Plus and Simple Start+ | Yes, all plans |
MTD for VAT | Yes, Simple Start and above | No |
MTD quarterly submissions | Yes, all paid plans | MTD filing plan and Full plan only (not Bookkeeping or +Self Assessment) |
Final Declaration (MTD year-end) | Yes, all paid plans | MTD filing plan and Full plan |
Self Assessment filing | No built-in SA tool | Yes, +Self Assessment plan (£129.99/yr) and Full plan (£159.99/yr) via GoSimpleTax |
Real-time tax estimates | Not a named feature on Sole Trader Plus | Yes, MTD filing plan and Full plan |
Bank feeds | Yes, Open Banking, all plans | Yes, 25+ UK bank providers via FCA-regulated Open Banking, all plans |
Receipt capture | Yes, AI extraction from photos | Yes, snap and store, all plans |
AI / intelligent features | Intuit Intelligence on Simple Start+; not on Sole Trader Plus | 24/7 AI support; automated categorisation; no named AI bookkeeping suite |
Payroll | Paid add-on, Simple Start+ | No |
Double-entry accounting | Yes, Simple Start+ | No; cash basis only |
Accountant access | QuickBooks Online Accountant, centralised dashboard, 50% discount | Accountant Portal, real-time data sharing, Accountant and Bookkeeper Partner programme |
Zempler free offer | No | Yes, 24 months free with Zempler bank account, saving up to £238 |
Free plan | No; 30-day free trial | No; 14-day free trial; free via Zempler |
Entry-level MTD price | £10 + VAT/month (Sole Trader Plus) | £129.99/year (MTD filing plan, ~£10.83/month equivalent) |
Self Assessment bundled | No | Yes, +Self Assessment (£129.99/yr) and Full plan (£159.99/yr) |
Mobile and web access | Yes, iOS and Android, web | Yes, iOS and Android, web browser |
Human tax support included | No dedicated tax experts included | Yes, team includes ex-HMRC staff and 30+ year tax specialists |
Prices exclude VAT. Coconut prices are the annual plan rates; monthly billing is available at higher per-month rates. Always verify current pricing directly with each provider before advising clients.
Pricing: A Direct Comparison
Entry-level MTD only
QuickBooks Sole Trader Plus at £10 per month (£120 per year) and Coconut MTD filing plan at £129.99 per year are almost identical in annual cost for a sole trader or single-property landlord who needs MTD quarterly submissions only, without Self Assessment or VAT. On a monthly basis, QuickBooks Sole Trader Plus at £10 per month is slightly cheaper than Coconut's monthly MTD filing rate of £21.99 per month, though Coconut's annual plan at £129.99 per year works out to approximately £10.83 per month, making them directly comparable on annual billing.
MTD plus Self Assessment
Coconut's Full plan at £159.99 per year covers both MTD quarterly submissions and Self Assessment filing in one subscription. QuickBooks has no built-in Self Assessment tool; clients needing both MTD and SA filing through QuickBooks would require a separate SA product or accountant engagement at an additional cost. For transitional-year clients who must file both simultaneously, Coconut Full at £159.99 per year may represent significantly better value.
The Zempler offer
Via the Zempler partnership, Coconut's software is available free for two years, a saving Coconut describes as up to £238. QuickBooks has no comparable free-via-bank-account offer. For sole traders and landlords who are willing to open a Zempler business bank account, Coconut represents the lowest possible cost MTD route between these two platforms during the free period.
VAT-registered clients
QuickBooks Simple Start at £16 per month covers both MTD for VAT and MTD for Income Tax in a single subscription. Coconut has no VAT capability at any tier. VAT-registered clients must use QuickBooks Simple Start or a different platform for VAT.
Which platform is right for your client?
Choose QuickBooks if your client:
Is VAT-registered and needs MTD for VAT alongside MTD for Income Tax from one platform.
Has a complex business requiring payroll, CIS, inventory, multi-currency, or double-entry accounting.
Works with an accountancy practice using QuickBooks Online Accountant for centralised multi-client MTD agent filing.
Has multiple income sources and is prepared to maintain separate QuickBooks accounts per source.
Needs the AI features of Intuit Intelligence on Simple Start and above for automated bookkeeping and anomaly detection.
Choose Coconut if your client:
Is a sole trader, landlord, or CIS subcontractor with straightforward finances who wants a jargon-free MTD app without accounting complexity.
Needs both MTD quarterly submissions and Self Assessment filing in one annual subscription via the Full plan at £159.99 per year.
Is in the transitional year and needs to file both a Self Assessment return and begin MTD quarterly submissions simultaneously.
Is opening or already holds a Zempler business bank account and wants to access Coconut free for two years.
Wants real-time in-year tax estimates throughout the year without waiting for a year-end accountant review.
Has multiple income streams and wants them managed within a single Coconut account rather than maintaining separate accounts per source.
Is not VAT-registered and does not need accounting tools beyond bookkeeping, tax, and MTD compliance.
What Neither Platform Fully Resolves
Partnerships are not yet in scope for MTD for Income Tax. HMRC has not confirmed a start date.
MTD for Corporation Tax is not yet mandated. Limited company landlords and sole traders operating through a limited company are outside the scope of MTD ITSA.
Neither platform confirms automated Section 24 mortgage interest tax credit calculations within their standard MTD quarterly update workflows, based on published pages as at July 2026.
The Final Declaration covers qualifying business income but does not replace the need to declare employment income, dividends, or capital gains separately. Coconut's Full plan includes supplementary SA pages for these; QuickBooks does not.
Coconut's MTD quarterly submission scope for foreign property income as a distinct quarterly update stream is not explicitly confirmed on published pages. The +Self Assessment and Full plans include SA106 (foreign income) for Self Assessment purposes via GoSimpleTax. Clients with overseas rental income requiring foreign property MTD quarterly submissions should verify this directly with Coconut.
Conclusion
QuickBooks and Coconut are not direct competitors for most clients. The decision between them turns on whether the client needs accounting infrastructure or tax compliance simplicity.
QuickBooks is the right choice for VAT-registered businesses, clients with complex accounting needs, practices managing large portfolios through a centralised agent dashboard, and anyone who needs payroll, CIS, inventory, or multi-currency within their MTD platform. It is a full accounting platform and should be treated as such.
Coconut is the right choice for sole traders, landlords, and CIS subcontractors with straightforward finances who want a simple, supported MTD solution without learning accounting software. Its Full plan at £159.99 per year, which bundles MTD quarterly submissions and Self Assessment filing together, offers genuine value for transitional-year clients managing both obligations simultaneously. The Zempler free-for-two-years offer makes it the lowest-cost confirmed MTD route in this comparison for eligible clients.
For accountants advising clients, the practical split is clear: Coconut for the self-managed, non-VAT sole trader or landlord who wants to handle their own MTD compliance with minimal friction; QuickBooks for the client whose affairs require the breadth of a full accounting platform.
