Which Bank account for non-Business Rental income?

jeggy123

Myself & partner have private rental income from buy-to-lets, and expenditure such as mortgages and maintenace etc. Our current bank account is being closed by the bank, as the bank considers it is being run as a "business". I would like to have a business bank account - but I can't find a bank that will accept us, as we don't have a business registered with Companies House - with rental income you don't have to run it as a business. It would not be sensible to convert it to a business now. We seem to be stuck here - help!

boingy

Anyone operating as a sole trader, which is many, many businesses, are not registered at Companies House and they usually have business accounts. Beyond that I can't help - my sole trader experience is two decades out of date!

km1500

have you tried Starling bank

jeggy123

Thanks, I spoke to Starling but they would require us to have a company registration at Companies House. I don't want to get tangled up with HMRC seeing our rental income as for a company....! Arggh!

jeggy123

boingy said:

Anyone operating as a sole trader, which is many, many businesses, are not registered at Companies House and they usually have business accounts. Beyond that I can't help - my sole trader experience is two decades out of date!

Perhaps I could have a sole trader account and have my partner as an authorised account holder (I don't know), but in reality we are more like a partnership. Still looking!

penners324

Get a Sole Trader account with Starling 

sheramber

Have you tried the Hugh Street banks. I have paid local businesses,  that are not ltd companies , By bank transfer to local banks.

[Deleted User]

jeggy123 said:

Myself & partner have private rental income from buy-to-lets, and expenditure such as mortgages and maintenace etc. Our current bank account is being closed by the bank, as the bank considers it is being run as a "business". I would like to have a business bank account - but I can't find a bank that will accept us, as we don't have a business registered with Companies House - with rental income you don't have to run it as a business. It would not be sensible to convert it to a business now. We seem to be stuck here - help!

All your rental transactions are business transactions & require a business account - the fact that you've opted to operate as sole trader (with unlimited personal liability) doesn't change that.

Have you asked your current bank for an actual business account? 

gary1312

I have opened free business accounts with Cashplus for an £80 cashback offer via TopCashBack and Tide for a £75 sign-up bonus. My own business is a tiny hobby business which I operate as a sole trader and neither Cashplus or Tide have ever asked me for any form of documentation regarding the business. 

Zanderman

You are running a business if you have buy to let, whether you think of it like that or not!

You don't need to be registered with companies house - as you're not a company.

You don't need to be a company to have a business account.

But you do need a business account to run a business - unless you break the banks terms and get away with it. But they've rumbled you.

Some banks might insist you are either a company or a sole trader. As you're neither (you operate with your partner so you are not a sole trader) you can't really operate with those restrictions.

Find one of the banks that accepts partnership business accounts (Starling don't).  And maybe register your partnership with HMRC to make it all easier.

Try Virgin - they have free business accounts, and don't have restrictions like Starling.