For a UK sole trader choosing between Cuppa and Coconut, the core difference is scope and cost.
Cuppa is built for simple MTD-compliant bookkeeping: record income, record expenses, submit quarterly updates to HMRC. Coconut covers that too, but also adds invoicing, CIS support, and self-assessment filing at a higher monthly cost.
If all you need is reliable MTD compliance at the lowest possible friction and price, Cuppa is usually the right call. If you want invoicing and bookkeeping in one mobile-first app, Coconut is worth the premium.
Key Takeaways
- Cuppa is cheaper and more focused for straightforward sole-trader MTD compliance.
- Coconut suits sole traders who want invoicing, receipt scanning, and broader app features alongside bookkeeping.
- MTD quarterly submissions are included in Cuppa's free plan. Coconut requires its +MTD plan (£21.99/month inc VAT).
- Both offer 14-day free trials with no card required.
Choose Cuppa or Coconut?
Choose Cuppa if:
- You want the simplest possible MTD workflow with the lowest cost
- You do not need invoicing inside your bookkeeping app
- You want HMRC submissions included in a free or low-cost plan
- You are switching from spreadsheets and want a clean, minimal setup
Choose Coconut if:
- You want invoicing and bookkeeping in a single mobile app
- You are a CIS subcontractor
- You want to file self-assessment directly from the same platform
- You prefer a well-established mobile-first app with bank account connections
Neither is ideal if:
- You run a limited company (neither is designed for that)
- You need payroll, multi-user access, or project accounting
Cuppa vs Coconut at a Glance
| Criteria | Cuppa | Coconut |
|---|---|---|
| Product style | Sole-trader MTD workflow app | Self-employed accounting + invoicing app |
| Target user | UK sole traders wanting simple MTD compliance | Sole traders, freelancers, CIS subcontractors |
| Setup effort | Very low | Low to medium |
| Pricing (MTD-ready plan) | Free (£0) or Pro (£4.50/month) | +MTD plan from £21.99/month inc VAT |
| HMRC / MTD fit | HMRC-recognised, MTD submissions on free plan | HMRC-recognised, MTD on +MTD plan only |
| Invoicing | Yes (Pro) | Yes (all plans) |
| Bank feeds | Yes | Yes (30+ UK banks) |
| Receipt scanning | No | Yes |
| CIS support | No | Yes |
| Self-assessment filing | Via Cuppa workflow | Yes (+Self Assessment plan) |
| Accountant access | No | Yes |
| Best fit | Simple MTD compliance, lowest cost | Invoicing + bookkeeping + MTD in one place |
Pricing and Value
Advertised UK pricing (last checked: 6 March 2026):
| Plan | Cuppa | Coconut |
|---|---|---|
| Free / entry plan | Free: £0/forever | No free plan |
| MTD-ready plan (monthly) | Pro: £4.50/month | +MTD: £21.99/month inc VAT |
| MTD-ready plan (annual) | Pro: £45/year | +MTD: £129.99/year inc VAT |
| MTD + Self Assessment (annual) | Via separate HMRC process | Full: £159.99/year inc VAT |
| Free trial | 14-day free trial on Pro | 14-day free trial (no card) |
Notes:
- Coconut prices above include VAT. Cuppa prices are listed excluding VAT.
- Both intro offers are 14 days, no card required.
- Coconut's Essentials plan (£16.99/month) does not include MTD quarterly submissions.
- Always verify before purchasing: Cuppa pricing and Coconut pricing.
Cuppa is roughly 3-4x cheaper at the equivalent MTD-ready tier. For sole traders who do not need invoicing inside their bookkeeping app, that gap is hard to justify.
MTD Workflow Fit
Both tools are HMRC-recognised and support MTD for Income Tax quarterly updates.
The practical difference is where MTD sits in each product:
- Cuppa is built around the quarterly submission workflow. Record income and expenses, track your tax estimate, submit when due. That is the whole product.
- Coconut wraps MTD submissions inside a broader accounting app. The workflow is reliable, but there are more settings, categories, and decisions to make upfront.
For users who want the simplest possible route to compliance, fewer moving parts usually means more consistent habits.
Reference: HMRC MTD for Income Tax guidance.
Setup and Learning Curve
Cuppa can be set up in under five minutes. Add your business details, record your first transaction, and the dashboard shows a live tax estimate. Most sole traders are ready to submit their first quarterly update within one session.
Coconut requires more initial configuration: connecting bank accounts, choosing invoice templates, setting up expense categories, and understanding which plan covers which features. The payoff is a richer feature set, but the setup takes longer.
If you are switching from nothing or from basic spreadsheets, the simpler setup is usually the better starting point. You can always switch tools later once you know what features you actually use.
Switching From Spreadsheets
From Cuppa's approach:
- Import your year-to-date income and expenses from CSV
- Verify opening balances
- Start recording new transactions from the current date
From Coconut's approach:
- Connect bank account (recommended starting point)
- Import historical transactions
- Categorise existing entries before the first quarterly submission
Both tools work better when you start clean at the beginning of a tax quarter. Coconut's bank feed approach can simplify historical import if your bank is supported.
Pros and Cons
Cuppa
Pros
- HMRC MTD submissions included in the free plan
- Significantly lower monthly cost at every tier
- Designed exclusively for sole traders
- Minimal setup, low learning curve
- AI assistant integration on Pro plan
Cons
- No receipt scanning
- No CIS subcontractor support
- No accountant sharing portal
- Invoicing available on Pro only
Coconut
Pros
- Invoicing, expenses, and tax in one mobile-first app
- Receipt scanning included
- CIS subcontractor support
- Accountant sharing portal
- Self-assessment filing available (Full plan)
- 30+ UK bank connections
Cons
- Considerably more expensive for MTD-only users
- MTD submissions not included on the entry plan
- More setup required
- More complex for users who only need basic compliance
Verdict: Which Should You Choose?
For most UK sole traders whose priority is simple, reliable MTD compliance at the lowest cost, Cuppa is the stronger choice. The free plan includes HMRC quarterly submissions. The Pro plan at £4.50/month (or £45/year) adds bank integration, invoicing, and amendment support. There is very little setup, and the workflow is designed specifically for sole traders with straightforward income and expenses.
Coconut makes more sense if you want invoicing integrated into the same app as your bookkeeping, if you are a CIS subcontractor, or if you eventually want to file self-assessment directly from the same platform. The extra cost is justified by those features. For purely MTD-focused users, it is not.
One-line rule: If you need invoicing and receipts in one place, consider Coconut. If you just want clean, cheap MTD compliance, use Cuppa.
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