How your tax estimates work in Coconut
The tax saving suggestion in the Taxes tab of your app is a rough estimate to help you plan ahead. By default, it is based on English tax rates.
How to make your estimate more accurate: You can personalise your tax calculation to fit your actual situation. Tap the icon in the top-right corner of the screen to update your tax profile. From there, you can adjust for:
Student loan repayments
Income from an employed job (PAYE)
Property income
Changes to your Personal Allowance
Important note on the calculation: Your tax estimate is based only on the actual profit you have recorded in Coconut so far this tax year. It does not try to guess or predict what you will earn by the end of the year. Because of this, your estimated tax bill will naturally grow as you log more income throughout the year.