Choose the appropriate business type for a landlord
This article explains which business type to choose when you’re setting up a FreeAgent account for a landlord.
If you have a business account with Mettle, find out how to set up a new Mettle-funded FreeAgent account.
This article contains the following topics. Select a link to skip straight to that section:
- Choosing a business type
- When to choose an unincorporated landlord business type
- When to choose a limited company business type
- Choosing a business category
Choosing a business type
It’s important to select the appropriate business type during the setup process as this cannot be changed later.
If you’re a landlord and rent out properties, there are two FreeAgent business types that may be suitable:
The choice will largely depend on who owns the properties; an individual, or a company.
Please note that each FreeAgent account can only keep the books for one kind of business.
When to choose an unincorporated landlord business type
Choose the ‘UK Unincorporated Landlord’ business type if you’re an individual who earns income from property that is not owned by a limited company and want to keep the books for your property income and costs in FreeAgent. Find out how to manage properties in FreeAgent.
Please note that the unincorporated landlord business type is only suitable for landlords who are resident in the UK and don’t receive property income from non-UK properties (other than EEA FHLs) or properties owned by a limited company.
If you rent out furnished holiday lettings (FHLs) in the UK or EEA, for tax years up to and including 2024/25, don’t record the income and costs in your bookkeeping in FreeAgent as they won’t be included on the correct section of your Self Assessment tax return. You’ll need to manually enter these on the tax return instead. For 2025/26 onwards, as the FHL regime was abolished as from 6th April 2025 you can enter the income and costs for properties that were formerly FHLs and are in the UK, in your bookkeeping in FreeAgent.
If you also have a self-employed business, you'll need a separate sole trader account to send details of your self-employment income and expenses to HMRC for Making Tax Digital (MTD) for Income Tax. Read more about how to use FreeAgent for MTD for Income Tax if you're a landlord with a self-employed business.
FreeAgent's payroll functionality isn't available in an unincorporated landlord account. If you need to run payroll, you would need to either use HMRC's Basic PAYE Tools and create payroll journals to bring in salary costs, or choose the sole trader business type.
When to choose a limited company business type
Choose the ‘UK Limited Company’ business type if you’re an incorporated landlord and the business is the landlord.
The limited company business type in FreeAgent is set up to support the necessary functionality and reporting requirements for a UK limited company, which includes Corporation Tax, End of Year accounts, dividend vouchers, share capital, directors’ loans, and directors’ Self Assessment filing.
Please note that we don't currently support box 190 on the Corporation Tax return (CT600) or the other specific boxes which are required for a property business run through a limited company. Therefore, you won’t be able to use FreeAgent to file your Corporation Tax return. However, you can refer to the information generated by FreeAgent in your FreeAgent account when you come to complete your tax return.
Choosing a business category
If you’re setting up an unincorporated landlord FreeAgent account, select the ‘Property / Landlord’ category from the ‘Business Category’ drop-down menu.
Please note that the property functionality is only available in an unincorporated landlord account. Selecting the 'Property / Landlord' business category in a sole trader or limited company account won't allow you to add or manage properties in FreeAgent.