Coconut vs Xero
Both are full cloud accounting tools for Making Tax Digital for Income Tax.
Xero is the cheaper starting point at from £100.80/yr (VAT included) versus from £129.99/yr for Coconut — but the cheapest plan only wins if it covers the income types you actually have.
| Coconut | Xero | |
|---|---|---|
| True annual cost from | from £129.99/yr | from £100.80/yr |
| Self-employment | Yes | Yes |
| Property / rent | Yes | Yes |
| Keeps your spreadsheet | No | No |
| Accountant access | Yes | Yes |
| Type | full cloud accounting | full cloud accounting |
| HMRC status | Recognised | Recognised |
| Price verified | 2026-08-10 | 2026-08-10 |
Coconut
Built from the ground up for sole traders and landlords under MTD — simple categorisation, no accounting jargon. Often supplied free through partner accountants.
- First-timers who find accounting apps overwhelming
- Landlords with a side trade
Xero
Full cloud accounting. The Simple plan is purpose-built for MTD for Income Tax with bank-feed automation, so you do less typing.
- Sole traders who want proper bookkeeping
- People who want bank feeds to do the work
Not sure either is right? Use the finder to get a recommendation ranked by what it will actually cost you.
Prices are each tool's cheapest plan, VAT included, last verified 10 August 2026 (catalogue reconciled 10 August 2026). Links are affiliate links and never affect ranking. Not affiliated with HMRC; not tax advice.