Bank account requirements

MTD ITSA does not legally require a dedicated business bank account for sole traders or landlords — but mixing personal and business money makes digital record-keeping far harder than it needs to be.

Open Banking feeds import every transaction on a linked account. A mixed personal current account pulls in groceries, utilities, and subscriptions alongside trade income. You or your agent must then tag and exclude hundreds of private lines before each quarterly update — which breaks the automation digital links are meant to provide and risks claiming personal spending against tax.

A business-only account lets rules and categories work as intended, keeps digital links clean, and typically saves hours every quarter. Bridging users with spreadsheets still benefit: fewer rows to reconcile and less copy-paste temptation.