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 adds a mobile-first app, automated bank feeds, an accountant portal, self-assessment filing, and CIS subcontractor support 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. Cuppa's bookkeeping is free, and the Pro plan at £6/month (£59/year) adds HMRC filing and more, with no other upsells. If you want a mobile-first app with automated bank feeds and an accountant portal, 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 Pro plan (£6/month or £59/year); bookkeeping itself is free. Coconut requires its +MTD plan (£21.99/month inc VAT).
- Coconut offers a 14-day free trial with no card required. Cuppa has no free trial, but its Free plan is available forever, and Pro starts at £6/month.
Choose Cuppa or Coconut?
Choose Cuppa if:
- You want the simplest possible MTD workflow with the lowest cost
- You want free mileage and home office tracking, with invoicing on a low-cost Pro plan
- You want HMRC submissions included in a single low-cost plan
- You are switching from spreadsheets and want a clean, minimal setup
Choose Coconut if:
- You want a mobile-first app you can run entirely from your phone
- You want an accountant sharing portal
- You want to file self-assessment directly from the same platform
- You prefer a well-established app with automated bank feeds across 30+ UK banks
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 plan for bookkeeping; Pro £6/month or £59/year for filing | +MTD plan from £21.99/month inc VAT |
| HMRC / MTD fit | HMRC-recognised, MTD submissions included | HMRC-recognised, MTD on +MTD plan only |
| Invoicing | Yes | Yes (all plans) |
| Bank feeds | No (not yet) | Yes (30+ UK banks) |
| Receipt scanning | Yes | Yes |
| CIS support | No (not yet) | 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 (bookkeeping, import, tax estimate, forever) | No free plan |
| MTD-ready plan (monthly) | £6/month (Pro) | +MTD: £21.99/month inc VAT |
| MTD-ready plan (annual) | £59/year (Pro) | +MTD: £129.99/year inc VAT |
| MTD + Self Assessment (annual) | Via separate HMRC process | Full: £159.99/year inc VAT |
| Free trial | No trial needed (Free plan available forever) | 14-day free trial (no card) |
Notes:
- Coconut prices above include VAT. Cuppa prices are listed excluding VAT.
- Cuppa's Free plan covers bookkeeping at no cost; the Pro plan (£6/month or £59/year) adds HMRC filing, with no free trial needed. Coconut's intro offer is 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
- Bookkeeping free forever; HMRC MTD quarterly submissions included in the Pro plan
- Significantly lower monthly cost
- Everything in Pro included, no further upsells or tiers
- Designed exclusively for sole traders
- Minimal setup, low learning curve
- AI categorisation and receipt scanning included
Cons
- No automated bank feeds yet (CSV import only)
- No mobile app (web-based only)
- No accountant sharing portal
- No free trial for Pro (Free plan available forever)
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. Bookkeeping, mileage, and home office tracking are free forever, and the Pro plan at £6/month (or £59/year) adds HMRC quarterly submissions, invoicing, and amendment support, with no trial needed and no further upsells. (CIS support is not available yet.) 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 a mobile-first app you run from your phone, automated bank feeds across 30+ UK banks, an accountant sharing portal, or the ability 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 want a mobile-first app with automated bank feeds, consider Coconut. If you just want clean, cheap MTD compliance, use Cuppa.
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