Coconut vs Pandle: best MTD software in 2026

Coconut

From £6/month

Aimed at: Sole traders who want the simplest MTD-only tool, mobile-first workflow

3.9/5

Try Coconut Read the full review →

Pandle

Free tier, £5/mo Pro

Aimed at: Very simple sole traders, hobby businesses, anyone on absolute zero budget

3.8/5

Try Pandle Read the full review →

Last verified on 30 September 2026. Sources: Coconut and Pandle provider websites, and the HMRC list of MTD software . Prices may include VAT or be promotional and can change at any time.

Coconut and Pandle are both HMRC-recognised for MTD Income Tax. Coconut is sole traders who want an all-in-one current account + accounting; Pandle is budget-conscious sole traders who already have a bank account.

Quick comparison

	Coconut	Pandle
Pricing	£6/month	£5/month
Best for	Sole traders who want an all-in-one current account + accounting	Budget-conscious sole traders who already have a bank account
Free tier	No	No
Bank feeds	Limited	Limited
Multi-currency	No	No
Invoicing	Yes	Yes
Mobile app	Yes	Yes

Coconut overview

Coconut is sole traders who want an all-in-one current account + accounting. Key strengths: Built-in current account, All-in-one, Simple. Limitations: Requires Coconut account, No multi-currency.

Pandle overview

Pandle is budget-conscious sole traders who already have a bank account. Key strengths: Cheapest option, Simple, No bank requirement. Limitations: Basic features, No multi-currency.

Which should you choose?

Pick Coconut if…

Built-in current account
All-in-one
Simple

Pick Pandle if…

Cheapest option
Simple
No bank requirement

Verdict

Coconut vs Pandle: Both are solid MTD-recognised options. Coconut excels for sole traders who want an all-in-one current account + accounting, while Pandle is better for budget-conscious sole traders who already have a bank account. Choose based on your specific needs and budget.

Still not sure which one fits?

Comparing prices and features only gets you so far. Answer five quick questions about how your business actually works and the MTD Software Finder will shortlist the tools that genuinely suit your situation — and be honest about what each one can't do.

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Coconut vs Pandle: how we researched this

We checked both Coconut and Pandle against the official HMRC list of MTD-compatible software on 30 September 2026, and verified pricing from each provider's own website on the same date. We judge what each tool genuinely can and can't do for a real UK sole trader, freelancer or landlord — including limitations a free trial won't volunteer — and we never let commission influence the order we present things. Some links on this page are affiliate links; we may earn a small commission if you buy through them, at no extra cost to you.

Also worth considering

If neither Coconut nor Pandle feels right, these HMRC-recognised options are worth a look:

FreeAgent UK sole traders & micro limited companies who want a simple all-in-one package Read the review →
Xero Sole traders & landlords who want a mature ecosystem and lots of integrations Read the review →
Sage Accounting Established UK businesses & landlords who want a recognisable UK brand Read the review →

Bottom line: who should pick what

Your situation	Our pick	Why
Best for VAT-registered businesses	Coconut	Sole traders who want the simplest MTD-only tool, mobile-first workflow

Not sure which camp you fall into? Run the 5-question Software Finder and we'll shortlist the tools that fit you.

Coconut vs Pandle: common questions

Which is better, Coconut or Pandle?

The honest answer is "it depends on your situation". Coconut is aimed at traders who fit "Sole traders who want the simplest MTD-only tool, mobile-first workflow", while Pandle is aimed at people who fit "Very simple sole traders, hobby businesses, anyone on absolute zero budget". If that doesn't settle it for you, run the 5-question MTD Software Finder and it will shortlist the tools that actually fit your circumstances.

Is Pandle or Coconut cheaper?

Pandle starts from a lower headline price (Free tier, £5/mo Pro) than Coconut (From £6/month). Check the plans on each provider's site for the full picture — the cheapest headline tier is often not the one you'll end up on.

Can I move from Coconut to Pandle later?

Yes. MTD just requires you to keep digital records and send quarterly updates to HMRC — it does not lock you into any one tool. Most MTD software lets you export your accounting data, so you can switch providers and simply start your next quarterly update in the new software. Keep your old records for at least six years.