Team Starling is on a mission. We want to provide the best business accounts in Britain. And that means listening to your feedback and following through with results.

That’s why we’ve added a whole suite of new categories for your business account transactions. Our new categories will give you more choice and a more meaningful insight into your income and outgoings.

To refine our new business categories, we spoke to Starling business customers and accountants to really understand what small businesses, contractors or freelancers need from their banking app.

Once you’ve updated to the latest version of the app, you’ll be able to choose from a whole new suite of business categories. We’ve grouped them together as follows:

  • Income. See all your revenue or refunds in one place.
  • Expenses. Log everything from train tickets to client meetings to new equipment.
  • Tax Payments. Within this category are three new ones to help make tax payments simpler: VAT, Corporation Tax for limited companies and Self-Assessment Tax for sole traders.
  • Business Payments. If you’ve transferred money between business accounts or invested capital in exchange for shares, the transactions can go in this category.
  • Personal Payments. Whenever you use your personal account to cover a business expense but need to pay yourself back, you can keep track with this category.

It’s worth noting that next to every category there is a help icon. You can tap on it to get more information and it will tell you what HMRC considers to be allowable business expenditure. This can help you decide which category to choose for an item.

We’ve built the Starling app to be as smart as possible - we know that there’s already more than enough on your to-do list as it is. In our Make Business Simple report, we found that micro-businesses (with 1 to 9 employees) spend an average of 15 hours a week on financial admin.

We want to cut down those hours. Categorisation for business accounts is automatic, designed to help you and your accountant cut down on admin and get a clear picture of business expenditure. If you want to change the automatically assigned category, you can do so in the app or through online banking and choose if you want past or future transactions from the same person or merchant to also be categorised in the same way.

Cutting back on admin is also why we’re launching the Starling toolkit for limited companies and sole traders. From the Starling online banking platform, you’ll be able create and match invoices, save for your tax return, and calculate and submit VAT to HMRC. Read more about the Sole Trader Toolkit and the Business Toolkit for limited companies. We’re all about using technology for good - less admin, more business.

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