- No monthly account fee and free UK digital banking*
- Comprehensive features: A full range of business banking services
HSBC UK Small Business Banking Account
-
Monthly Fee:
£0
-
Bank Transfers:
Free**
-
Overdraft:
Yes**
-
Account Access:
App, Online, Branch & Post Office
-
- No monthly account fee and free UK digital banking*
- Comprehensive features: A full range of business banking services.
- Available to Small Business Banking customers who are typically small enterprises with borrowing** needs of up to £100k and whose everyday banking needs don’t need the support of a Relationship Manager.
- No monthly account fee and free UK digital banking*
- Comprehensive features: A full range of business banking services.
- Available to Small Business Banking customers who are typically small enterprises with borrowing** needs of up to £100k and whose everyday banking needs don’t need the support of a Relationship Manager.
- No monthly account fee and free UK digital banking*
- A full list of prices and charges applicable can be found in HSBC UK’s Business Price List at business.hsbc.uk/legal
- Sole traders, limited companies, partnerships, limited liability partnerships and non-charitable clubs/associations/societies can all apply
- Must be a tax resident in the UK but not the Channel Islands or the Isle of Man
- **Borrowing is subject to application, eligibility, affordability and credit check. T&Cs, fees, charges and rates apply. For loans, you don’t need to open or maintain an HSBC Business Current Account unless a debenture or fixed charge over book and other debts is required.
Virgin Money M Account for Business
-
Monthly Fee:
Free
-
Bank Transfers:
Free
-
Overdraft:
Yes
-
Account Access:
App, Online & Branch
-
- Free online business banking (excluding CHAPS & international)
- Link up your business to market leading tools, such as Sage, Xero, Google, Shopify and more
- Up to £1million annual turnover
- Free online business banking (excluding CHAPS & international)
- Link up your business to market leading tools, such as Sage, Xero, Google, Shopify and more
- Up to £1million annual turnover
- Free day-to-day online business banking (excluding CHAPS and international payments)
- Earn 0.25% Cashback on debit card purchases. Terms and exclusions apply
- Manage all your business data in one place using Virgin Money’s M-Track Insights platform. Link up your business to market leading tools, such as Sage, Xero, Google, Shopify and more, to track them from one simple dashboard
- Must be based and operated in the UK (excluding Channel Islands, Isle of Man and Northern Ireland)
- All owners, directors, senior managers and account signatories must be over 18 years old
NatWest Start-Up Business Bank Account
-
Monthly Fee:
Free
-
Bank Transfers:
Free
-
Overdraft:
Yes
-
Account Access:
App, Online & Branch
-
- 2 Years Free Banking on Everyday Transactions
- FreeAgent accountancy software is free for as long as you retain your bank account
- Overdraft applications are subject to status. Security and product fees may apply.
- Standard Tariff applies to transaction fees after 2 years.
- 2 Years Free Banking on Everyday Transactions
- FreeAgent accountancy software is free for as long as you retain your bank account
- Overdraft applications are subject to status. Security and product fees may apply.
- Standard Tariff applies to transaction fees after 2 years.
- Get 2 years free banking on everyday transactions
- *Free Agent is Making Tax Digital Compatible
- Branch & Online Access
- For businesses trading for less than 1 year & turnover of less than £1m
- Applicants must be 18+ and owner or director with no Bankruptcy, County Court Judgement or Court Decree.
Barclays Start-up Business Bank Account
-
Monthly Fee:
Free for 12 months, then £8.50
-
Bank Transfers:
Some charges apply
-
Overdraft:
Yes
-
Account Access:
App, Online & Branch
-
- No monthly account fee for your first 12 months*
- Access to discounted services via key partners to help you set up and run your business effectively, worth over £5,000**
- After 12 months, the monthly account fee is £8.50 per month.
- **Terms and conditions apply to each partner service, see the partners’ websites for details.
- No monthly account fee for your first 12 months*
- Access to discounted services via key partners to help you set up and run your business effectively, worth over £5,000**
- After 12 months, the monthly account fee is £8.50 per month.
- **Terms and conditions apply to each partner service, see the partners’ websites for details.
- *Free digital banking and no monthly account fee for the first 12 months. You won’t have to pay a monthly account fee for 12 months if you don’t already have a Barclays Business Account with us. After 12 months, you’ll pay £8.50 per month.
- Free digital banking refers to simple electronic payments as defined in your business account tariff. Fees and charges will apply in line with the business account tariff, which could change.
- To open a new business account with Barclays, you’ll need to have a right to live in the UK permanently and provide 12 months’ UK address history. Subject to terms, conditions and eligibility. 18+.
- Overdrafts are subject to application, financial circumstances and borrowing history.
Royal Bank of Scotland Start-Up Business Bank Account
-
Monthly Fee:
Free
-
Bank Transfers:
Free
-
Overdraft:
Yes
-
Account Access:
App, Online & Branch
-
- 2 Years Free Banking on Everyday Transactions
- FreeAgent accountancy software is free for as long as you retain your bank account
- Overdraft applications are subject to status. Security and product fees may apply.
- Standard Tariff applies to transaction fees after 2 years.
- 2 Years Free Banking on Everyday Transactions
- FreeAgent accountancy software is free for as long as you retain your bank account
- Overdraft applications are subject to status. Security and product fees may apply.
- Standard Tariff applies to transaction fees after 2 years.
- Get 2 years free banking on everyday transactions
- *Free Agent is Making Tax Digital Compatible
- Branch & Online Access
- For businesses trading for less than 1 year & turnover of less than £1m
- Applicants must be 18+ and owner or director with no Bankruptcy, County Court Judgement or Court Decree.
- The switcher service offer is not available to existing NatWest or Ulster Bank customers.
The Financial Services Compensation Scheme (FSCS) protects up to £120,000 of eligible deposits per person or company, per firm, which is authorised and regulated by the Financial Conduct Authority (FCA). The limit is the total of all deposits held with one firm. For more information visit www.fscs.org.uk.
Our comparison is ordered by the commercial arrangements with some, or all, of the providers featured. Our service is free and commercial arrangements have no effect on the products you may select. To find out more about our independence, regulatory authorisation and how we earn money, visit the ‘About’ page on our website.
¹ BRANCH ACCESS Account provider maintains a nationwide branch access for face to face customer banking and/or relationship management.
² CASH DEPOSITS Facilities to deposit cash in either a branch, Post Office, Paypoint or other locations into the account. Limits and charges may apply.
³ NO HARD CREDIT CHECK A soft credit check for ID & Fraud purposes is carried out for account only applications. If you apply for a credit product such as an overdraft with the business account, a hard credit check will be initiated.
⁴ FAST OPENING Accounts opening in 3 days or less in most circumstances. Excludes application timescales.
⁵ GLOBAL CURRENCY ACCOUNTS Currency accounts with local (domestic) bank details for the EU (SEPA) and at least one international country e.g. USA (ACH) to transact as a local business. This feature can also be termed ‘local rails’. This differentiates them from providers offering local account details for the EU (SEPA) only and currency accounts or ‘pots’ that transact only via SWIFT.
⁶ ACCOUNTING The provider offers accounting features either through their own platform or via integration with third-party software like Xero, QuickBooks or Sage. Please note that third-party integrations usually require a separate subscription fee.
Types of Business Bank Account Available
- Fast Opening Bank Accounts
- Bank Accounts with Accountancy
- Cash Deposit Bank Accounts
- Bank Accounts with Branch Access
- Freelancer Bank Accounts
- Startup Business Bank Accounts
- Free Business Bank Accounts
- Joint Business Bank Accounts
- Business Bank Accounts With Overdraft
- Online Business Bank Accounts
- Sole Trader Business Accounts
- Multi Director Business Accounts
- No Credit Check Bank Accounts
- Switcher Business Accounts
- Small Business Bank Accounts
- Bad Credit Business Accounts
- Corporate Business Bank Accounts
- International Business Accounts
- Multi Currency Business Accounts
- Accountancy Business Bank Accounts
- Branch Access Business Bank Accounts
- Fast Opening Business Bank Accounts
- Cash Deposit Business Bank Accounts
How to Compare Business Bank Accounts
Understand Your Requirements
How you do business will affect the type of account you need. How many transactions will you have each month? Do you need to pay in cash? Do you need a local branch?
Check Eligibility
Most providers have a range of business accounts to suit different types of businesses. Check the eligibility of each account to make sure if suited to your business.
Compare The Latest Deals
There are numerous offers and deals to attract new customers which can be compared with our handy tool above. Always consider the cost of the account once the free period ends.
What Is Making Tax Digital?
Making Tax Digital is an HMRC programme to modernise how individuals and businesses record and report their tax.The underlying principle is straightforward: rather than completing one annual Self Assessment tax return, you use compatible software to keep digital records of your income and expenses throughout the year, then submit a summary of those figures to HMRC every three months.
Does Making Tax Digital apply to you?
MTD for Income Tax Self Assessment (MTD for ITSA) applies to sole traders, freelancers, and landlords whose gross income (total money in, before expenses) exceeds the relevant thresholds. The rollout is staggered as follows:
Remember it’s gross income, not profit
Your threshold is based on gross income, not profit. Check your most recent Self Assessment return if you are unsure where you stand. HMRC bases this on your 2024/25 tax return. If you hit £50k gross then, you are in for April 2026, even if your 2025 income drops.
Why is HMRC doing this?
HMRC points to the UK tax gap, the difference between the tax it expects to collect and what it actually receives, as the primary motivation. Digital record keeping is designed to:
- Reduce errors that arise from manual or paper-based processes
- Give self-employed taxpayers a clearer estimate of their likely tax liability throughout the year
- Reduce the volume of late or inaccurate submissions that build up before the January Self Assessment deadline. According to the BBC, in January 2026, over 1 Million tax payers missed the January deadline.
- Help you catch problems with your figures earlier in the year, rather than at your annual return
Who can be exempt from Making Tax Digital?
Who can be exempt from Making Tax Digital?
HMRC allows exemptions in specific circumstances. You may have grounds to apply if:
- A health condition or disability makes digital record-keeping genuinely impractical
- You have no reliable internet access and remote alternatives are not realistic
If you believe you have grounds, applying early is advisable, do not wait until your deadline is close
Penalties for late submissions
HMRC has confirmed that a points-based penalty system will apply to late quarterly submissions under MTD. Points accumulate for late submissions, and a financial penalty is triggered when a threshold is reached. The benefit of digital records is that you can also expect to make corrections to your figures during the year, meaning errors do not have to wait until the annual declaration to be resolved.
Three Making Tax Digital Myths
Myth: “It means five full tax returns a year.”
Reality: You submit four simplified quarterly updates, a summary of your income and expenses for the previous three month period. Each quarterly update can include edits to previous updates, so you don’t need to worry about mistakes or updates after you submit each one. Then the final year end declaration. No tax payment is triggered by the quarterly updates themselves.
Myth: “I’ll have to scan every receipt and upload it to HMRC.”
Reality: Digital records means keeping your figures in a digital format, not submitting individual receipts. Entering your income and expenses into compatible software or a linked spreadsheet is sufficient.
Myth: “I can’t use Excel.”
Reality: Spreadsheets are an accepted record keeping method. You just need bridging software, a tool that connects your spreadsheet to HMRC’s systems for submission. You do not need to abandon a spreadsheet workflow if it suits you, although you could be missing out on many time saving efficiencies by not using software designed for accounting and MTD.
What counts as qualifying income?
- Self-employment income: Money you earn as a sole trader
- Property income: Rent from UK land or buildings
- If you have both, they are combined when assessing whether you exceed the threshold
What to do before the MTD deadline
- Check your gross income: Review your 2024/25 Self Assessment return. If your total income from self-employment and property exceeds £50,000 you will need to follow MTD.
- Check your current business bank account: Before purchasing standalone Making Tax Digital software, confirm whether your existing business account already includes an MTD-compatible tool or provides integration links with particular their party providers.
- Open a dedicated business account if you do not have one: Keeping business and personal income separate makes digital record keeping significantly more straightforward throughout the year.
Choose your Making Tax Digital Software and get familiar with it early: The process is simpler when you have used it before it is compulsory.
Making Tax Digital FAQs
Do you need a business bank account for Making Tax Digital?
No, technically MTD does not require you to hold a business bank account. However, legally, if you are an incorporated company you do. Regardless of if you are a limited company or sole trader, having your business transactions separate makes digital record keeping considerably more straightforward. When business and personal transactions are in the same account, identifying and categorising your business income and expenses throughout the year becomes more time consuming. A dedicated business account also simplifies the process if HMRC ever queries your records.
How do I know whether I need to sign up for Making Tax Digital?
The starting point is your gross income from self employment and property for the tax year. If that figure exceeds the relevant threshold, which currently is £50,000 for April 2026, HMRC expects you to comply from that date. Your Self Assessment return is where you can check your qualifying income. If you are unsure, your accountant or HMRC’s own guidance at GOV.UK can clarify your position.
What’s the difference between ‘online’ and ‘digital’
Self Assessment used the online approach, which simply means using the internet to file and submit the annual return into the HMRC web portal and you could keep your account records how you wished, for example in a spreadsheet. Digital means using approved software that maintains records in a digital format and reports throughout the year as part of the MTD submission.
difference between ‘online’ and ‘digital’?
Is Making Tax Digital the same as Self Assessment?
Yes, however one relates to the existing process and one is for its replacement. Self Assessment is the existing system, the paper based or online self assessment tax return submissions due once per tax year. As it rolls out, ITSA (Income Tax for Self Assessment) replaces Self Assessment, with the combined requirement for digital record keeping: Making Tax Digital (MTD), with four digital updates and one final digital submission per tax year.
Can I use Excel for Making Tax Digital?
Yes, spreadsheets are an accepted method of record-keeping under MTD for ITSA, provided there is a digital link between your records and what you submit to HMRC. That link is provided by bridging software, which connects your spreadsheet to HMRC’s systems for submission. If your current process involves a spreadsheet, you do not need to replace it, you need to add a bridging connection.
Is Making Tax Digital free?
The requirement to comply is not itself a cost, but the software you use to do so typically is. Some software providers offer free tiers with limited functionality. Some business bank accounts include access to MTD compatible software at no additional charge as part of the account package. Whether compliance is free for you depends on which account and software combination you use.
Will Making Tax Digital be delayed again?
MTD for Income Tax has been subject to delays in the past. The current April 2026 start date for those with income over £50,000 is confirmed and the pilot programme is active. Planning around the confirmed date rather than anticipating further delays, is the approach to take.
Can my accountant handle Making Tax Digital on my behalf?
An accountant who is set up to use MTD compatible software can manage your submissions for you. How you manage your digital records will be down to you and your accountant to decide the best approach. Quite often accountants extend their own software to their clients or you might provide access to yours. Talk to your accountant to understand the available options and costs.
How do I apply for an exemption from Making Tax Digital?
Exemptions are available in specific circumstances, including where a health condition or disability makes digital record keeping genuinely impractical, or where internet access is not reliably available. You can apply through your HMRC online account or by contacting HMRC directly. Applications are assessed individually. Cost and personal preference are not accepted as grounds for exemption.
What are the penalties for not complying with Making Tax Digital?
HMRC is applying a points based penalty system to MTD, similar to the one currently used for late VAT returns. Each late quarterly submission earns a penalty point. When your points reach a set threshold, a financial penalty is issued. The specific thresholds and penalty amounts are set out in HMRC’s guidance, which is available on GOV.UK.