Coconut is now HMRC-approved Making Tax Digital for Income Tax software. A simple way for sole traders and landlords to get ready for digital tax in 2026 and beyond.
We’ve got some exciting news to share – Coconut has been officially recognised by HMRC as an approved software provider of Making Tax Digital for Income Tax (MTD IT).
Big changes are coming to how sole traders and landlords submit their tax returns, and with over 10 years of experience in the tax filing software industry, we’re proud to be offering a solution that’s built to make the whole process much easier.
From 6th April 2026, around 1 million sole traders and landlords earning over £50,000 a year will need to start keeping digital records and sending quarterly updates to HMRC using compatible software. Then from 2027, another 1.2 million earning between £30,000 and £50,000 will follow, and finally, another 1 million earning over £20,000 in 2028. Basically, it’s goodbye to the once-a-year tax return and hello to regular record keeping and updating.
The aim of this is to have better tax compliance and fewer errors. But let’s be honest, for anyone not already using digital tools, it can feel like a lot to get your head around.
That’s where we come in. Coconut was designed specifically for sole traders and landlords, to make the MTD switch from Self Assessment tax returns feel simple, not stressful. Whether you’re using our app or accessing Coconut via our website, you can:
- Submit your Self-Assessment or MTD updates without the hass
- Track income and expenses in real time
- Snap and store receipts as you go
- Raise and manage invoices easily
- Always know how much tax you owe
We’ve kept Coconut deliberately straightforward. Unlike some accounting software that’s packed with features for big businesses, we focus on what sole traders and landlords actually need – no unnecessary bells and whistles.
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.”
Now is a great time to get started. You don’t need to wait for the 2026 deadline because Coconut’s already set up to help you save time, stay organised and be MTD ready.
And while we’re on the topic of changes… you might have noticed that Coconut’s had a bit of a makeover lately.
We’ve given our brand and website a refresh, not just to look the part, but to make sure it’s as simple and straightforward as the software we offer. The new site is faster, easier to navigate and clearer to understand, whether you’re a long-time user or just finding us for the first time.
You’ll still find all the tools you know and rely on, like real-time tax tracking, receipt scanning, and invoice management, but now it’s even easier to explore everything Coconut has to offer.
Take a look around and let us know what you think!
