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- Free day-to-day online business banking*
- Designed for businesses with a turnover of less than £1million
- Earn 0.25% Cashback on debit card purchases. Terms and exclusions apply
27 Products Compared
Tide Business Bank Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free for one year*
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Overdraft:No
- Apply online in minutes with no credit checks or paperwork needed
- This account comes with no monthly maintenance fees
- 20p per bank transfer
- Single director access only
- Create and send invoices for free
- Multi-business – hold up to 5 business accounts
- Automated 30-day cash flow forecasts
- For registered business account: you must be registered with UK Companies House as a director of that company or partnership
- For sole trader account: you must be a UK based sole trader/freelancer
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
Virgin Money M Account for Business-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:Yes
- Free online business banking (excluding CHAPS & international)
- 0.25% cashback on debit card purchases. Terms apply
- For businesses with less than £1m annual turnover
- Virgin Money offers 24/7 self-service but not 24/7 customer support
- 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
- Available for eligible businesses with up to £1m annual turnover
- 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
- For limited companies, please allow up to 72 hours from registering your business with Companies House, before starting an application
HSBC UK Small Business Banking Account-
Monthly Fee:£0
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Monthly Fee Offer:None
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Bank Transfers:Free*
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Overdraft:Yes
- No monthly account fee and free UK digital banking*
- Comprehensive features: A full range of business banking services.
- *Free UK digital banking means day-to-day standard electronic transfers made through Business Internet Banking and HSBC UK Business Banking app are free. Other charges apply e.g. cheques and CHAPS. See Business Price List for details. Subject to application, eligibility, credit check and T&Cs.
- **You must be an HSBC Business Banking customer to access free accounting tools through My Business Finance. Once you’ve opened your account, you’ll need to set up Business Internet Banking to get access. This is not available for HSBC Kinetic customers. T&Cs apply. Find out more here.
- No monthly account fee and free UK digital banking*
- Free accounting tools to stay on top of invoices, cashflow and tax.**
- 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
- 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. Please note, government lending schemes are subject to different limits.
- 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.
Tide Savings Business Bank Account & Savings Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free for one year*
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Overdraft:No
- Apply online in minutes with no credit checks or paperwork needed
- This account comes with no monthly maintenance fees
- 20p per bank transfer
- Single director access only
- Create and send invoices for free
- Multi-business – hold up to 5 business accounts
- Automated 30-day cash flow forecasts
- For registered business account: you must be registered with UK Companies House as a director of that company or partnership
- For sole trader account: you must be a UK based sole trader/freelancer
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
Revolut Basic Business Account-
Monthly Fee:£10
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Monthly Fee Offer:None
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Bank Transfers:10 Free per month
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Overdraft:No
- No monthly fee with 10 free local bank transfers per month
- Compatible with accounting software and create invoices in app
- Only 5 free local transfers and no free international transfers
- An e-money product with no branch access
- Multi-currency accounts – receive payments and exchange in 25+ currencies
- Control and monitor team spending with multiple debit and virtual cards, manage permissions and levels of access and more
- Various payment facilities including Tap to Pay on iPhone (fees apply)
- International payments – Send and receive money from 150+ countries
- Available for limited companies, PLCs, LLPs, Partnerships & unlimited companies
- Currently available for companies registered in and with a physical presence within the European Economic Area (EEA), Switzerland, UK and US
Airwallex Explore Business Account-
Monthly Fee:Free*
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:No
- Open local currency accounts in 60+ countries
- Make international transfers to 150+ countries at interbank rates
- Deposit £10,000 p/month or hold £10,000 to be free, if not £19 p/month
- An e-money product with no branch access
- Open multiple accounts per entity. Collect and hold in 20+ currencies
- Expense management for cards and reimbursements
- Free local transfers to 120+ countries and domestic transfers. Access to interbank FX rates and batch transfers
- Multi-currency and employee cards with zero international fees
- Includes 5 free employee card users and up to 10 company cards
- Online card and local payment method acceptance globally
- Bank feeds sync with Xero. ApprovalMax, WorkflowMax by BlueRock Integrations
- You must be at least 18 years old
- Be a sole trader, partner in a partnership, or company
- Your business is registered in the UK. More markets are available with different Airwallex entities. Details can be found on the Airwallex website.
Monzo Business Lite-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:Yes
- For sole traders and small businesses wanting a free, simple digital current account
- Get instant notifications for all account activity to stay in control of your cash flow
- Online account management only, no phone or branch access.
- Not currently available for charities or partnerships.
- Free, instant UK bank transfers
- 24/7 customer support
- Mobile and web access
- The Monzo banking essentials
- Only sole traders or limited company directors in the UK can apply. Ts&Cs apply.
Barclays Start-up Business Bank Account-
Monthly Fee:£8.50
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Monthly Fee Offer:12 months free
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Bank Transfers:Free
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Overdraft:Yes
- Free digital banking and no monthly account fee for the first 12 months*
- Access to discounted services via key partners, worth over £5,000**
- After 12 months, the monthly account fee is £8.50 per month*
- **T&Cs apply to each partner service, see partner website for details.
- No monthly account fee* plus access to discounted services via key partners to help you set up and run your business effectively, worth over £5,000**
- A UK-based team of business managers to help you manage and grow your business
- Simple and secure online banking with group payments and cash collection booking tools
- Businesses with existing Barclays business current accounts aren’t eligible for this offer. After 12 months, you’ll pay £8.50 per month. Fees and charges will apply in line with the business account tariff which may be subject to change.
- Must be over 18, a UK resident and a sole trader or the director of a limited company
- Overdrafts are subject to application, financial circumstances and borrowing history.
Zempler Bank Business Bank Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:3 free per month
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Overdraft:Yes
- There are no credit checks to open an account
- Accounting integrations Inc. Xero, Quickbooks & Sage
- A one-off £9.95 card issuing fee applies
- ATM withdrawal fees apply in UK and abroad
- 24/7 app & online servicing and UK based customer service team
- FSCS protection – up to £85,000
- Deposit cash into any of the UK’s 11,500 Post Offices.
- Invoicing tools that allow you to create and send invoices easily
- Available to UK registered companies or UK-based sole traders
- Application made by UK Director
- UK Director 18 years old plus
Cynergy Bank Business Current Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:No
- International payments in 7 major currencies, including EUR and USD
- Online application for businesses with up to 10 directors
- £5 per month after the 12 month free period
- Fees apply for cash, CHAPS, SWIFT and SEPA transactions
- 3.50% on balances up to £10k and 0.10% for balances above £10k
- Make international payments in up to seven major currencies, with option to open EUR or USD accounts.
- Customise workflows for account management and transaction approvals requiring more than one account user to sign-off.
- Bulk payment processing.
- Online application for businesses with up to 10 directors.
- Must be a sole trader, partnership, limited liability partnership (LLP) or limited company (LTD)
- Must be registered and eligible to pay tax in the UK
- Have a maximum of 10 directors
Equals Money Start Up Business Account-
Monthly Fee:£25*
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Monthly Fee Offer:None
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Bank Transfers:Free
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Overdraft:No
- Simple onboarding with no credit checks, good for businesses without established credit history
- Ability to hold and transact in multiple currencies, useful even for start-ups with international clients or suppliers
- No overdrafts, loans, or credit facilities, which start-ups might eventually need as they grow
- An e-money account with no branch access
- Budgeting tools
- Manage multiple currencies
- Make tax preparation easy
- Available to Limited Companies, Sole Traders and Partnerships
- You must be 18+ and a UK resident.
Wallester Business Expense Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:No
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Overdraft:No
- Streamlining company spending with virtual and physical cards, automation, and a real-time dashboard for complete expense control
- Open accounts and issue cards quickly without visiting a bank
- Wallester is not a business bank account, you don’t get traditional banking features like transfers, overdrafts or loans.
- Wallester is a business expense and corporate financial management account
- Free package with 300 free virtual cards and an unlimited number of free physical cards
- Free multifunctional dashboard for tracking and managing expenses
- No top-up fee (in EUR), no transaction fees, no usage fee, no issuance fee, and no fee for adding extra users
- Ten currencies, including GBP, EUR, USD and other European currencies (SEK, NOK, CZK, HUF, RON, PLN, DKK)
- App included and API for integrations with any CRM accounting software
- You must be at least 18 years old
- Be a sole trader, partner in a partnership, or company
- Must have an eligible business bank account
Card One Money Business Account-
Monthly Fee:£12.50
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Monthly Fee Offer:None
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Bank Transfers:From 30p
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Overdraft:No
- No credit checks or signatures required
- Supports integration with platforms like Xero, Sage, and FreeAgent
- One-off £55 application fee which is refundable if the application is unsuccessful
- £12.50 per month with no free monthly period
- Up to 4 additional cards for business use
- UK-based customer support
- International payments in a range of currencies
- Available to Limited Companies, Sole Traders and Partnerships
- Your business must be registered in the UK and have an annual turnover of less than £2m
- You must be 18+ and a UK resident. Card One Money need to be able to verify your identity & residency.
- Card One Money is not covered by the Financial Services Compensation Scheme. See product FAQs for more info
Anna Money Pay As You Go-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:From 20p
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Overdraft:No
- You can obtain a UK business account and sort code in 3 mins with ID
- One free debit card included (£3 per extra card)
- No joint account access
- An e-money product with no branch access
- 1 debit card included (£3 per extra card) – 1% cashback on selected categories
- Personal payment link for accepting payments online (1% commission)
- Instant invoice generator and savings pots facility (fees apply)
- Landlords / property investors get a free 12 month subscription to the National Residential Landlords Association (NRLA)
- FastTrack to Credit – Boost your credit score and get access to credit after 3 months activity
- Must be a Sole Trader, Director of a Limited Company (and listed on Companies House), or a Partner in a Limited Liability Partnership
- Business must be located within the UK and you also need to have a UK residential address
- Not available to charities
The Co-operative Business Bank Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:Yes
- Ideal for start ups and growing businesses who bank digitally
- No charges for all automated credits, cash withdrawals and debit card purchases
- Charges apply for cash and cheque transactions
- An overdraft arrangement fee applies and where security is required, additional security fees may apply
- Free everyday digital business banking. No monthly fee. No charges for all automated credits, cash withdrawals and debit card purchases
- Integrate your accountancy software like Xero, Sage or Quickbooks within your online banking
- Online and in-person banking including mobile, instant secure messaging, UK based contact centre, and in branch. Rated ‘Excellent’ based on over 12,000 reviews on Trustpilot
- Most receive their account details within five days
- Co-operative Bank business customers get free, unlimited access to the Go Get Paid app – the fast, simple, secure way to get paid. Plus access selected Clover payment terminals for £1 a month for the first 12 months (fees apply)
- The original ethical bank with a customer-led Ethical Policy
- Must be a UK resident with a business address in the UK
- Must be 18 or over
- You or your organisation must be one of the following: “a Sole Trader, Partnership, Limited Liability Partnership or Limited Company
Counting Up Business Current Account-
Monthly Fee:£3
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Monthly Fee Offer:3 months free
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Bank Transfers:30p
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Overdraft:No
- Perfect for start-ups: Pay a low monthly fee depending on how much your business earns
- Automated taxes calculates what you owe in real time
- The price increases with account usage
- An e-money product with no branch access
- Monthly subscription fees that go up and down in line with your business performance
- Rated ‘Excellent’ based on over 2,000 reviews on Trustpilot
- Built-in accounting software with receipt capture and live business insights
- Available to sole traders and limited companies
- You must be 18+ and a UK resident
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.
Why a Self-Employed Person Needs a Business Bank Account
When you become self-employed, the law views you and your business as a single entity and this structure means there is no legal requirement to open a separate business bank account. It can therefore seem sensible to manage everything through your personal current account, with the view that this solution would keep things more simple. However, this approach can create significant confusion and complexities, and is not considered good practice.
Opening a dedicated bank account for your self-employed business is one of the most important steps you can take to establish clear and professional financial habits from day one. It creates a firewall between your business income and outgoings and your personal, day-to-day spending. Furthermore, while many banks may not immediately stop you from putting business transactions through a personal account, there are often either limitations or clear rules that will in the longer term mean you have to find a business account. A dedicated account ensures you stay compliant and makes managing your money infinitely easier.
Key Benefits of a Separate Account
The practical advantages of using a business bank account as a self-employed individual are substantial.
Simplified Tax and Financial Management
This is the single biggest benefit. When it’s time to complete your annual Self-Assessment tax return for HMRC, having a separate account is a lifesaver in respect of time and management. All your business income and allowable expenses are neatly contained in one place, usually categorised in readiness for tax or accounting purposes. This eliminates the task of sorting through personal transactions to find business-related ones, before you’ve even begun to assign each one to a category for the tax return. The day to day management of cashflow is also there in real time, you open your app and see your balance related to your business.
Enhanced Professionalism and Credibility
Asking clients to pay into an account that is clearly designated for business, rather than your personal account, instantly boosts your professional image. It demonstrates that you are an organised and legitimate business owner.
Access to Business-Specific Tools
Business bank accounts often come with features that are not available with personal accounts. These can include integrations with accounting software like Xero or QuickBooks, the ability to generate and send invoices directly from your banking app, and tools to automatically categorise your spending to help with budgeting and financial analysis.
Building a Financial History
Should you need to apply for business finance in the future, such as a loan or credit card, having a well-managed business account provides a clear trading history. This track record can be key in demonstrating the viability and financial health of your business to a lender.
How to Open a Self-Employed Account
For a self-employed sole trader, opening a business bank account is a very straightforward process. As you are not registering with Companies House, you won’t need incorporation documents. The bank will usually ask for:
- Proof of Identity: A valid form of photo ID, such as a passport or a UK driving licence.
- Proof of Address: A recent utility bill, council tax statement, or personal bank statement.
- Business Details: The nature of your business, your trading name (if different from your own), and an estimate of your annual turnover.
Many applications, particularly with digital banks, can be completed online in minutes.
Self Employed Business Bank Account FAQs
1. Is a business bank account a legal requirement for the self-employed?
No, if you are a sole trader in the UK, you are not legally required to have a separate business bank account. However, it is highly recommended by accountants and business advisors for the purposes of effective financial and tax management.
2. Can my bank stop me from using my personal account for business?
Yes. The terms and conditions for many personal bank accounts in the UK state that they should not be used for business activity. If your bank notices a high volume of transactions that appear to be business-related, they have the right to ask you to open a proper business account or may even close your personal account if you fail to move business transactions away from your personal account.
3. Will opening a business account affect my personal credit score?
As a sole trader, you and your business are legally the same entity, so banks will almost always check your personal credit file when you apply for a business account. This initial hard check may cause a small, temporary dip in your score. If you apply for a business account with your existing personal account provider, this may require less checks. However they may not be the most cost effective solution for your business.
4. Are there free business bank accounts for self-employed people?
Yes, many of the challenger and high street banks offer free or free offer periods for business accounts. When referring to ‘free’ this is almost always in reference to a monthly subscription like charge that comes with a business account. However, business accounts have a charging structure beyond this fee, relating to various types of business transactions so you must make sure you understand these to fully understand the costs of a potential new business account.
5. How is a self-employed account different from a limited company account?
A self-employed (sole trader) account is linked directly to you as an individual. A limited company account is opened in the name of the company itself, as it is a separate legal entity. To open a limited company account, you must provide your Companies House registration details, which is not required for a self-employed account.