Since launching three years ago we’ve built lots of features that have taken us closer to our vision of making self-employment easier than being employed. The feedback has been incredible and we want to continue building tools that will help your business thrive.
In order to do that, we're making some important changes to our price plans for existing customers, effective from 1st March 2021.
We’re saying goodbye to the free plan
To continue investing in features and supporting our customers we need to be self-sustaining, and that means discontinuing the free plan. We know this will be quite a big change for many of our customers. We’re confident it’s the right thing to do for our business and therefore for the customers that rely on us for theirs.
We’ve redesigned our plans
We’ve spent a lot of time speaking to customers and understanding how and why you use Coconut, and that led us to redesigning our plans to reflect that. Our goal is for our pricing to be a no brainer for you because it’s such good value, and we hope this is reflected below.
The Start & Grow plans will now be replaced with two new plans:
- Side-Hustle (£3 per month): For those who are setting up a business or doing freelance work alongside another job
- Professional (£10 per month): For those running a business or freelancing full-time, with everything you need to manage your accounting and tax
New: Monthly limit on the number of transactions you can categorise for tax
Categorising transactions for tax is essentially your bookkeeping, and good bookkeeping is critical to making sure you pay the right amount of tax.
Depending on your plan, each month you get a free allowance for the number of transactions you can categorise for tax each month. And when we say transactions we mean both income and expenses, and this applies across all accounts, including external accounts you have connected to the app.
To be very clear, this limit does not affect your ability to make and receive payments or use your Coconut debit card, it just means you won’t be able to apply a tax category to any transactions over your monthly allowance.
If you go over your transaction limit in a given calendar month, those transactions will be highlighted in your app. From there, you can upgrade your plan to increase your limit and continue to categorise your transactions.
New: Bank transfer fees (only applicable to Current Account Customers)
Bank transfers sent to and from Coconut current accounts go through the UK’s Faster Payment network. This comes at a cost, which is why you sometimes see providers charge for bank transfers, and many more have fair usage policies.
As we’ve grown, our no limits policy has become unsustainable and so our new plans introduce some fees and allowances. Each month there’s a free allowance, and after that it will be 20p per transfer (for context, this is what it costs us on average to process each bank transfer). For more info, please see our updated Terms here.
Support available for those affected by Covid
We know the last year has been incredibly tough and we want to do what we can to help those who really need it. We’re introducing the Covid Support Scheme where you can apply for a three month payment holiday if your income has been significantly impacted by the pandemic and you’re worried about these changes.
To apply, complete this short form and a member of our team will be in touch.