Buy to Let

rodo_2

I am at the beginning of buying to let and I need some sort of account to channel it into. Do I have to have a business account or can I use an ordinary current account? I suspect that the bank wants me to have a business account so that they can have a slice. I will be cascading the purchases and remortgages and building a portfolio of approx 15+ houses. Has anyone else come accross this question and how did you solve it?
Thanks.
rodo

poopscoop

nah, you just need a regular bank account for direct debit payments.

amboy

wha about rent coming in? the bank may cottom on you ar eusing it as a business. Abbey offer a free business account which is failry flexible

gallygirl

Rodo, I bank with Smile - 2 current accounts, 1 for myself and 1 for BTL's. I just PM'd them and asked if I could have another acount to keep 'bill money' separate and there was no problem. It's a great bank, internet, can pay in cash at PO and credited straight away, tenants pay in my standing order & i've never had any problems.

Would have thought you could open another account with any bank - do it through quidco if poss & get some money back. Only likely to cause problems if you actually ASK them about using it for BTL's.....

In my opinion, as you pay tax on BTL through self assessment, and don't have to set up a separate business, it's the same as a part time job.

poopscoop

amboy wrote:

wha about rent coming in? the bank may cottom on you ar eusing it as a business. Abbey offer a free business account which is failry flexible

you do not need a business bank account when you have a buy to let. On the IR Website there is a section where you do a self assessment specifically for Investment properties and this is not in the self-employment/business area.

Also, if you want to open a business bank account with Abbey you will need to show them forms that show that you are self-employed (business letterheads, etc) and you do not require this when you have BTL.