Business bank account for first time landlord.

smiler247

I have asked my bank if I can open a separate current account to deal with future rental income and expenditure. They have said that I'm better off opening a business account with them.

Is it worth doing or shall I just open another personal account elsewhere?

Thank you for your time.

UpToMyNeckInIt

Personal account all the way. Unless of course you have set up a business to buy, sell and let property.

smiler247

Thank you for your reply.

AlexMac

Assuming your main concern is to submit accurate tax returns....
Agreed; why pay for a business account (I bet they're not free) when all you need is a pile of receipts, a note of 12 monthly income payments in and any direct debits out, such as service-charges/insurances...

and the ability to fill in less than a dozen lines on a tax return. Given the relatively small sums involved (from HMRC's perspective) I am unsurprised that in 15 years I've never had a figure challenged, let alone audited by the Taxman. In fact last year, they wrote to me that they'd prefer me to stop doing self assessment online, and tax me via PAYE via a tax-code based on an estimate!