Tax application Coconut claims to have invented the UK’s first mobile current account with an integrated accounting service that will oil the wheels of small businesses and sole traders.

The new service was designed for freelancers, self-employed and small business owners. The product launch was timed to coincide with the UK’s Making Tax Digital campaign.

The mobile app’s accounting service aims to cover everything from the user’s current account to the filing of their tax return with HMRC and Companies House.

The apps lets customers watch the movement of their money, gives guidance on expense management and other finance advice through an in-app chat box.

The app was build after research by Coconut revealed that 52 per cent of self-employed and small business owners wanted a tool that digitally manages the complete range of their finances.

The service starts at £100 per month.

“We are moving people away from a fragmented proposition to bring it all together in one place,” said Coconut CEO Sam O’Connor, who promised that businesses could ditch their fiddly array of cloud accounting and receipt apps.

In Coconut’s own 500 person survey 64% of the self-employed complained that HMRC has not given them enough notice about Making Tax Digital. Half of them said cloud accounting packages won’t support the objectives of Making Tax Digital.

by Bill Boyle
IBS Intelligence Senior Editor