Key takeaways
- An individual landlord is not legally required to have a business bank account; Business.gov.uk says only certain businesses, such as limited companies, must have one.
- A landlord who lets through a limited company must have a business bank account in the company's name.
- Monzo Business accepts UK sole traders and Ltd companies, but says a company must earn mostly from selling goods or services, not interest or investment income, so check how it treats a rental company.
- Starling's list of unsupported industries does not include property letting, but it does not accept holding companies or partnerships on its business accounts.
- Mettle, Monzo Lite, Starling and Tide Lite charge no monthly fee, checked on 6 November 2026.
- A tenancy deposit must be protected in a government-approved scheme within 30 days of receiving it, so it should not sit in your ordinary account.
- Landlords with qualifying income over £50,000 had to start MTD for Income Tax from 6 April 2026; the threshold falls to £30,000 from 6 April 2027.
Most individual landlords do not need a business bank account, but a separate account for rent and costs makes your records and MTD for Income Tax much easier. Landlords who let through a limited company must have one. The main choice is whether a provider accepts property letting at all, then fees and software links.
Do landlords need a business bank account?
Individual landlords do not, and property companies do. Business.gov.uk says sole traders and ordinary partnerships are not legally required to have a business account, while certain businesses, such as limited companies, must.
A separate account still helps. It keeps rent and allowable costs in one feed, which makes declaring rental income and quarterly updates simpler. A second personal current account in your own name can do the same job if your bank allows it. Our guide on whether sole traders need a business account covers the same question for the self-employed.
Which applies to you?
- If you let one or two properties in your own name, a separate personal account or a free sole trader business account both work.
- If you own a property jointly with a spouse or partner, a joint personal account is simpler, because Monzo and Starling business accounts do not accept partnerships.
- If you let through a limited company, you need a business account in the company’s name. Check the provider accepts property companies before applying.
- If you have qualifying income over £30,000, pick an account that feeds your MTD software from April 2027.
- If you take tenancy deposits, protect them in an approved scheme; do not hold them in the rent account.
Do providers accept landlords?
Not every business account suits letting income, so check eligibility first. This is what each provider’s own pages said on 6 November 2026, listed alphabetically.
Mettle. Mettle’s fee document lists no monthly fee, or £4 a month for Mettle+, and £2.75 per Post Office cash deposit. Its main account is provided by NatWest and is FSCS protected; the separate e-money account is not.
Monzo. Monzo Business accepts UK sole traders and directors of Ltd companies by shares, aged 16 or over. For companies, Monzo says the business must “make money mostly from selling goods or services, not mostly from interest or investment income”. It does not say how it treats rent, so use its eligibility checker. Monzo also does not support partnerships, LLPs, trusts or shell companies.
Starling. Starling’s eligibility page does not list property letting among its unsupported industries. It does exclude holding companies, businesses holding client money and businesses with regular large cash deposits. Its sole trader account is not open to partnerships.
Tide. Tide markets its account to “landlords and sole traders” in an article published 8 April 2026, and its pricing page lists Lite as free with 5 bank transfers a month.
Fees compared
Monthly fees come from each provider’s own pricing page on 6 November 2026.
| Provider | Monthly fee | Cash deposit fee |
|---|---|---|
| Mettle | £0 (Mettle+ £4) | £2.75 at the Post Office |
| Monzo Lite | £0 (Pro £9) | £1 at PayPoint or Post Office |
| Starling | £0 | Higher of £3 or 0.7% |
| Tide Lite | £0 (Smart £12.49) | Listed as included |
Tide’s pricing shows Smart at £12.49, Pro at £27.49 and Max at £69.99 a month. Its Xero Connector starts on Smart. Monzo’s fee information, version 1.16 dated 18 August 2026, lists Team at £25 a month. For high-street options, see business bank account fees compared.
How do MTD for Income Tax rules affect your choice?
MTD makes a clean bank feed more useful. GOV.UK says you must use MTD for Income Tax if you have income from self-employment or property, or both, above these limits:
| Qualifying income | Tax year tested | MTD from |
|---|---|---|
| Over £50,000 | 2024 to 2025 | 6 April 2026 |
| Over £30,000 | 2025 to 2026 | 6 April 2027 |
| Over £20,000 | 2026 to 2027 | 6 April 2028 |
Tide says its free in-app tools are HMRC-recognised for quarterly updates. Check that any bank tool handles property income and jointly owned property before you rely on it. For full software options, see accounting software for landlords.
Where should tenancy deposits go?
Deposits belong in a government-approved scheme, not your account. GOV.UK says a landlord or letting agent must protect the deposit for an assured periodic tenancy within 30 days of getting it. Assured periodic tenancies replaced assured shorthold tenancies on 1 May 2026.
The approved schemes in England and Wales are the Deposit Protection Service, MyDeposits and the Tenancy Deposit Scheme. Scotland and Northern Ireland have their own schemes.
Is a landlord’s money protected?
Eligible deposits at UK banks are FSCS protected up to £120,000 per person per firm, the limit since 1 December 2025. E-money accounts are safeguarded instead, not FSCS protected. See FSCS protection for business accounts.
What to do now
- Decide whether you let as an individual, jointly or through a company.
- Check the provider’s eligibility page for letting income before applying.
- Move rent and property costs into one account from the start of a tax year.
- Connect the account to your MTD software.
- Protect any deposit in an approved scheme within 30 days.
Frequently asked questions
Do landlords need a business bank account?
Individual landlords do not, but limited companies must have one. A separate account still makes records and MTD quarterly updates easier.
Can a landlord open a Monzo Business account?
Monzo accepts sole traders and Ltd companies, but says companies must earn mostly from selling goods or services, so check its eligibility checker for a property company.
Does Starling accept landlords?
Starling’s unsupported industries list does not include property letting, but it excludes holding companies and partnerships, and reviews each application individually.
Can I keep tenancy deposits in my business account?
No. GOV.UK says deposits must be protected in an approved scheme within 30 days of receiving them.
When do landlords have to use MTD for Income Tax?
From 6 April 2026 if qualifying income was over £50,000 in 2024 to 2025, and from 6 April 2027 if over £30,000 in 2025 to 2026.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.