As a sole trader, having a separate bank account for your business is not legally required, but it is very useful.
A dedicated business bank account can help you stay organised and make it easier to track expenses and income for tax purposes.
It also helps to separate your personal and business finances, providing a clear picture of the financial health of your business.
This article will explore the top sole trader bank accounts available in the market and explore their features and benefits.
- Brands Breakdown
- What is a Sole Trader Business Bank Account?
- Why Do I Need an Account?
- How to Choose
- Features to Look For
- Eligibility Criteria
- How to Open
- Pros and Cons
- Our Top Choices
- FAQs
Best Sole Trader Account Brands Breakdown
Best Overall Sole Trader Bank Account
Tide Free Business Account
Monthly Fee: £0
Bank Transfers: 20p
Card Purchases: £0
Overdraft: No
FSCS Protection: Yes
Accessibility: Access your Tide account via the web or the mobile app.
Offer: Tide is offering £150 cashback just for signing up until 31/1/2025.
Tide is one of the best banks in the market, and their dedicated free sole trader account is perfect for those who are self-employed and looking for a tailored account to suit their needs.
» MORE Read our full Tide business review
Pros & Cons
- Quick and easy account opening process
- The app provides an easy way to track business expenses and income
- The app includes accounting, invoicing and receipt-scanning features
- The account includes a Mastercard debit card
- The app is not yet fully functional in some countries
- No cheques facility
Account Features
£1 fee on ATM withdrawals
No overdraft or credit facilities
3% fee on cash deposits
Account access through web and app
20p per international transfer
FCA regulated (FRN 900843) & FSCS protected with Clearbank
Software integration available
4.1 Trustpilot Score and 4.7 Google Play rating
24/7 Customer support (for paid accounts)
Eligibility Criteria
You must be at least 18 years old.
You must have a valid UK phone number.
You must have a device that can access the UK Apple App Store or Google Play Store.
You must be either the director of an active company registered with UK Companies House or a sole trader/freelancer registered with HMRC.
Charities/trusts and other high-risk industries are not eligible.
Businesses operating from outside the UK are excluded.
Best Sole Trader Bank Account for Those Operating in the EEA
Revolut Business Basic Account
Monthly Fee: £0
Bank Transfers: 20p (5 free per month)
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your Revolut Business account via the web or mobile app
Revolut is a fintech company that offers a range of financial services, including business accounts for sole traders.
» MORE Read our full Revolut Business review
Pros & Cons
- Fast account opening process
- Useful app with intuitive features
- The account includes invoicing and receipt-scanning features
- Physical debit card
- Access to a wide range of currencies with interbank exchange rates
- Some features may only be available to some customers
- Revolut is a relatively new company and may have a different experience and resources than some of the more established banks
- No cheques facility
Account Features
Monthly fee from £0
2% fee on ATM withdrawals
No overdraft or credit
No cash deposits
Account access from app and web
Free international transfers
FCA regulated (900562). No FSCS protection
API integration for paid accounts
4.1 Trustpilot score & 4.8 Google Play score
24/7 Customer support
Eligibility Criteria
You must be at least 18 years old.
Your business must have a physical presence in the UK, EEA or Switzerland.
You must be a private limited company, public limited company, Limited Liability partnership or partnership.
Charities/trusts and other high-risk organisations are not eligible.
Businesses operating from outside the supported countries are excluded.
Best Sole Trader Bank Account for Freelancers
ANNA Money Pay As You Go Account
Monthly Fee: £0
Bank Transfers: 20p
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your ANNA Money account via the web or mobile app
Anna Money is a bank account created explicitly for sole traders, freelancers and small businesses. It’s designed to be affordable, simple to use, and to minimise the admin side of running a business that can be time-consuming.
If you’re just starting out, we think Anna represents great value for money, and their customer service is notably good. The account is not FSCS protected as opposed to something like Tide.
» MORE Read our full Anna Money Review
Pros & Cons
- Comes with a contactless Mastercard debit card
- Open an account within 10 minutes
- Real-time app notifications so that you can keep track of your transactions
- Easily set up direct debits and standing orders from the app
- Built-in tax app
- No branches or in-person support
- Charges for foreign currency transactions
- No cheque deposits
Account Features
Monthly fees from £0
ATM withdrawal fee £1
No overdraft or credit
Cash deposits available (1% fee, £1,000/month limit)
Account access by app only
Foreign transfers available (£5 fee)
FCA regulated (FRN 900594), no FSCS protection
API integration available
4.6 Trustpilot score and 4.1 Google Play score
24/7 customer Support
Eligibility Criteria
You must be at least 18 years old.
You must be a sole trader, a director of a limited company (and listed on Companies House) or a partner in a Limited Liability Partnership (LLP).
You must have a UK residential address.
Charities/trusts and other high-risk businesses are not eligible.
Businesses not based in the UK are excluded.
Best Sole Trader Bank Account for Those Getting Paid Internationally
Wise Business Account
Monthly Fee: £0
Bank Transfers: Variable
Card Purchases: Variable
Overdraft: No
FSCS Protection: No
Accessibility: Access your Wise account via the web or mobile app
The Wise International Business Account provides several benefits for sole traders.
» MORE Read our full Wise business review
Pros & Cons
- Multi-currency account with over 50 currencies
- Low fees
- Built-in invoicing tools
- Advanced security measures
- No physical branches
- Does not offer traditional banking services
- No credit cards
Account Features
No Monthly Fees
£200/month free ATM withdrawals, then 1.75% + 50p fee
No overdraft or credit availability
No Cash Deposits
Account access via app and web
Foreign transfers available, fees vary
FCA regulated (FRN 900507), no FSCS protection
Software Integration available
4.3 Trustpilot score and 4.8 Google Play score
24/7 Customer Support
Eligibility Criteria
You must be 18 years of age or older.
Almost all businesses are eligible, but you must provide proof of address for the account representative.
Your business must operate within the supported countries.
High-risk companies and charities/trusts operating outside certain countries are not eligible.
Card One Money Business Account
Monthly Fee: £12.50
Bank Transfers: £0
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your Card one money account via the web or mobile app
Card One Money is an e-money account rather than a fully regulated bank account aimed at those who might not pass a full credit check.
There are some costs involved with the account, which may put off some users, but on the plus side, the Trustpilot reviews are excellent, with a 4.5-star average.
» MORE Read our full Card One Money Review
Pros & Cons
- Card one money does not require a credit check
- No charge to open account
- The account offers a contactless Mastercard debit card
- The account opening process is fast and easy
- Instant domestic and international payments
- £55 application fee (refunded if not approved)
- Same-day faster payments are charged at £7.50
- Standing order costs 30p
- 15p charge to check your card balance by SMS
- Limited customer support
- The company focuses mainly on credit management; not all businesses may require this service
Account Features
£12.50 Monthly Fee
ATM withdrawal fee £1.50
No overdraft or credit availability
Cash Deposit fee 0.75%
Account access via app, web and telephone
Foreign transfer fee of 2.75%
FCA regulated (FRN 900493), no FSCS protection
Integrated Software for corporate account
4.5 trustpilot score and 3.8 Google Play score
24/7 Customer Support
Eligibility Criteria
- You must be at least 18 years of age.
You must reside within the UK.
Your business must be registered within the UK.
Businesses operating outside the UK are excluded.
Companies that are listed as directors are not eligible.
Zempler Bank Business Go Account
Monthly Fee: £0
Bank Transfers: 30p (3 free per month)
Card Purchases: £0
Overdraft: Yes
FSCS Protection: No
Accessibility: Access your Zempler Bank account via the web or mobile app
Formerly known as Cashplus, Zempler is a fully licensed UK bank that offers personal and business accounts.
You can apply for their business account as a sole trader or freelancer. It comes with a UK-based customer services team, Financial Conduct Authority (FCA) protection like high street banks, and 24-hour fraud monitoring.
» MORE Read our full Zempler business review
Pros & Cons
- No hard credit check required
- Fast application process
- Contactless Mastercard debit card
- Credit builder functionality to help you repair credit
- Zempler offers flexible pricing options to suit the needs of different businesses
- Some customers may prefer a more established bank
- £15 for incoming international transfers
- Some additional fees for specific functionality
Account Features
Monthly Fee £0
ATM withdrawal fee £2
Overdraft and credit available
Cash Deposit fee 0.5%
Account access via web and app
No outgoing foreign transfers, incoming cost £15
FCA regulated & FSCS protected
Software integration available with Xero, Quickbooks and Sage
3.5 Trustpilot score, 4.7 Apple App Store score and 4.5 Google Play score
Customer Support limited, Mon-Fri 8am-8pm, Saturday 8am-4pm and UK Bank Holidays 9am-5pm
Eligibility Criteria
You must be at least 18 years old and have a UK residential address.
You must be a sole trader, director of a limited company, a charity or a partnership based in the UK.
Sole traders cannot be registered at UK Companies House. Limited Companies must have no more than 4 PSCs registered with Companies House.
High-risk organisations are not eligible.
Businesses operating from outside the UK are excluded.
HSBC Kinetic Current Account
Monthly Fee: £6.50 (Free for 12 months)
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your HSBC Kinetic account via their mobile app, phone, or in-branch
Special Offer: Get a £100 Amazon.co.uk gift card when you open an HSBC Kinetic Current Account and make 10 qualifying transactions.
As the largest bank in Europe, an account with HSBC offers excellent credibility and branch access
HSBC Small Business Banking Account offers various banking services, including online banking, mobile banking, and telephone banking.
» MORE Read our full HSBC Business Review
Pros & Cons
- Debit card included
- Loan options available
- Lots of support services offered
- Lots of savings options
- Minimum deposit requirement
- Higher account fees
- Limited to businesses based in the UK
- Not as tech-savvy
- Limited features
- Long and complex account opening
Account Features
Free for 12 months, then £6.50 monthly fee
0.6% ATM withdrawal fee
Overdraft and credit available
Cash Deposit fee 1.5%
Account access via web, app, phone and branch
Foreign transfer fee £17 in app
FCA regulated (FRN 765112) & FSCS protected
Software integration available
1.6 Trustpilot score and 3.6 Google Play score
24/7 Customer Support
Eligibility Criteria
- You must be at least 18 years of age and reside within the UK.
You must be a sole trader or the sole director of a limited company operating within the UK.
You must have an annual income of no more than £6.5m.
Businesses operating from outside of the UK, within the Isle of Mann or the Channel Islands, are not eligible.
Lloyds Bank Instant Access Business Account
Monthly Fee: £8.50 (Free for 12 months)
Bank Transfers: 20p (100 free per month)
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Lloyds Bank account via the web, mobile app, phone, or in-branch
Lloyds is a well-established and reputable bank with a wide range of services and resources for businesses.
The Startup and Small Business Account offers a range of benefits, and is perfect for the less comprehensive needs of a sole trader.
Pros & Cons
- Debit card included
- Range of in-app tools
- Lots of support services offered
- Loan options available
- £1 minimum deposit
- Limited to businesses based in the UK
- Not as tech-savvy
- Less comprehensive features than competitors
- Long and complicated account opening process
Account Features
Free for 12 months, then £8.50 monthly fee
Free ATM withdrawals
Overdraft and credit available
Cash Deposit fees vary
Account access via web, app, phone and branch
Foreign transfer fee £15
FCA regulated (FRN 763256) & FSCS protected
Software integration available
1.7 Trustpilot score & 3.8 Google Play score
24/7 Customer Support
Eligibility Criteria
- You must be at least 18 years of age and reside within the UK.
You must be a sole trader, director of a limited company or in a partnership.
You must have an annual turnover of no more than £6.5m.
Businesses operating from outside the UK are excluded.
Monzo Business Lite Account
Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Monzo account via the web or mobile app
Monzo is a mobile banking app that offers various banking services, including current accounts, business accounts, and credit cards.
» MORE Read our full Monzo business review
Pros & Cons
- Quick and easy account opening process
- The app provides an easy way to track business expenses and income
- Ability to use the account for business purposes
- Physical debit card
- Limited ATM withdrawals
- The app is not yet fully functional in some countries
- Some features may not be available to all customers
- No cheques facility
Account Feature
Monthly Fee of £0
Free ATM withdrawals
No overdraft or credit availability
Cash Deposit fee £1
Account access via app and web
Free international transfers available
FCA regulated (FRN 730427) & FSCS protected
Software integration available
4.0 Trustpilot score and 4.7 Google Play score
24/7 Customer Support
Eligibility Criteria
You must be at least 16 years of age.
You must be a sole trader or the director of a limited company registered with Companies House, you must be based in the UK.
You must be a tax resident in the UK only.
LLPs, PLCs, charities and high-risk organisations are not eligible.
Businesses operating from outside the UK are excluded.
Starling Bank Business Current Account
Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Starling Bank account via the web or mobile app
Starling Bank offers a business account specifically for sole traders.
» MORE Read our full Starling Bank review
Pros & Cons
- Quick and easy account opening process
- Dedicated sole trader account available
- The app provides an easy way to track business expenses and income
- Ability to use the account for business purposes
- The account includes invoicing and receipt-scanning features
- Physical debit card
- Limited ATM withdrawals
- The app is not yet fully functional in some countries
- Some features may not be available to all customers
- Starling is a relatively new bank and may have a different experience and resources than some of the more established banks
Account Features
No Monthly Fee
Free ATM withdrawals
Overdraft and credit available
Cash Deposit fee 0.7%
Account access via web & app
Free international transfers available
FCA regulated (FRN 730166) & FSCS protected
Software integration available
4.4 Trustpilot score and 4.8 Google Play score
24/7 Customer Support
Eligibility Criteria
All directors with access to the account must be at least 16 years old and UK residents.
All Persons of Significant Control must be UK residents and natural persons.
You must be either a sole trader or the director of a limited company or LLP registered with Companies House.
The business must not be a holding company, dissolved, or in liquidation.
Businesses operating from outside the UK are excluded.
Charities/trusts and high-risk businesses are not eligible.
What is a Sole Trader Business Bank Account?
A sole trader business bank account is a dedicated account for individuals running their own business.
It separates personal and business finances, simplifying tax reporting and financial management.
This type of account often includes features such as overdraft facilities, cash deposit options, and integration with accounting software.
It provides essential banking tools tailored for sole traders, ensuring efficient and professional handling of business transactions.
Why Do I Need a Sole Trader Bank Account?
Having a sole trader bank account is essential for keeping business finances separate from personal funds.
This separation helps in tracking income and expenses accurately, making tax filing easier.
It enhances financial management and provides access to banking features like overdrafts and credit tailored for business needs.
Additionally, it supports professional credibility and facilitates integration with accounting software.
How to Choose the Best Sole Trader Bank Account for You
Choosing the best sole trader bank account involves several key considerations:
- Monthly Fees and Charges: Compare the cost structures, including monthly fees and transaction charges.
- Account Features: Look for features like overdraft facilities, credit options, and cash deposit methods.
- Digital Tools: Ensure the account offers robust online and mobile banking options.
- Integration: Check if the account integrates with accounting software you use.
- Customer Support: Evaluate the quality and availability of customer support.
Features to Look For
- Monthly Fee: Lower fees reduce your business overheads.
- ATM Withdrawals: Easy access to cash for daily operations.
- Overdraft or Credit Facilities: Financial safety net for managing cash flow.
- Cash Deposits: Secure and convenient deposit options for cash transactions.
- Account Access: Robust online and mobile banking for easy management.
- International Transfers: Cost-effective options for global transactions.
- FCA Regulation & FSCS Protection: Ensures your funds are safeguarded.
- Software Integration: Simplifies bookkeeping by connecting with accounting software.
- Trustpilot Score and Google Play Rating: Indicates customer satisfaction and reliability.
- Customer Support: Reliable assistance to resolve issues swiftly.
Eligibility Criteria for Sole Trader Accounts
In the UK, you are eligible to open a sole trader bank account if you:
- Operate as a Sole Trader: You must be running your business as a sole trader, which means you are self-employed and solely responsible for your business.
- Resident in the UK: You must have a UK residential address.
- Registered with HMRC: You should be registered as a sole trader with HMRC for tax purposes.
- Business Type: Your business activities should comply with the bank’s acceptable use policy.
How to Open a Sole Trader Account
- Research and Compare: Identify banks that offer sole trader accounts and compare their features, fees, and services.
- Gather Required Documents: Typically, you’ll need proof of identity, proof of address, and evidence of your sole trader status (like HMRC registration).
- Apply Online or In-Branch: Most banks offer online applications; some may require an in-branch visit.
- Complete the Application: Fill out the application form with your personal and business details.
- Verification Process: The bank will verify your documents and may conduct a credit check.
- Account Approval: Once approved, you’ll receive your account details and can start using your new account.
Pros and Cons of a Sole Trader Account
- Separation of finances
- Professional image
- Access to business banking features
- Simplified accounting
- Enhanced creditworthiness
- Better financial management
- Personal liability for debts
- Monthly fees and transaction charges
- Limited banking services compared to business accounts
- Potentially lower borrowing limits
- May require personal credit checks
- Limited support for business growth
Our Best Banks Accounts for Sole Traders & Self Employed
- The best overall business sole trader account: Tide
- The best sole trader account for those operating in the EEA: Revolut Business
- The best sole trader account that is crypto-friendly: Revolut Business
- The best sole trader account for those getting paid internationally: Wise Business
- The best overall account for freelancers: ANNA Money
| Bank | Monthly Fees | Star Rating | Get Started |
|---|---|---|---|
| ANNA Money | Free | ★★★★ | Apply Now |
| Card One Money | £12.50 per month | ★★★ | Apply Now |
| Zempler Bank | Free | ★★★ | Apply Now |
| HSBC | 12 months free, then £8 per month | ★★★★ | Apply Now |
| Lloyds | 12 months free, then £7 per month | ★★★ | Apply Now |
| Monzo | Free or £5 per month | ★★★★ | Apply Now |
| Revolut Business | Free | ★★★★★ | Apply Now |
| Starling Bank | Free or £7 per month | ★★★★★ | Apply Now |
| Tide | Free | ★★★★★ | Apply Now |
| Wise Business | Free (opening an account costs 45GBP) | ★★★★★ | Apply Now |
FAQs
What Documents Do I Need to Open a Sole Trader Account?
The documents you’ll generally need to open an account are:
- Proof of Identity: Passport, driving license, or national ID card.
- Proof of Address: Recent utility bill, bank statement, or council tax bill.
- Business Information: Details about your business, such as its name and nature.
- Self-Employed Status: Confirmation of your status as a sole trader, often through HMRC registration or self-assessment documentation.
How Long Does It Take to Open a Sole Trader Account?
The time it takes to open a sole trader account can vary based on the bank and the completeness of your application. Typically, the process involves:
- Online Application: Filling out an online form can take 10-30 minutes.
- Document Verification: Submitting and verifying documents usually takes 1-3 business days.
- Account Approval: Once verified, account approval can take an additional 1-5 business days.
In total, the process can range from a few days to a week.
How Does Having a Sole Trader Bank Account Affect my Taxes?
Having a sole trader bank account simplifies tax reporting by separating business and personal finances, making it easier to track income and expenses.
This clarity helps in accurately identifying allowable business expenses, which can reduce your tax bill.
Mixing business and personal costs in a personal account complicates calculating deductible business expenses.
Therefore, a dedicated business account ensures more accurate tax filings and potential savings.
Can I Upgrade My Sole Trader Account if My Business Grows?
Yes, if your business expands, you can upgrade your sole trader account to a business account with more features.
Many banks offer seamless transitions to accounts that provide higher transaction limits, enhanced credit facilities, and additional services suitable for growing businesses.
However, usually these accounts come with higher monthly maintenance fees, and switching accounts may involve a risk of temporary disruption to your banking operations.
It’s advisable to discuss your needs with your bank to find the best options tailored for your business’s evolving requirements.
