Disclosure: no links on this page are paid or affiliate links, and no provider has paid to be included. We are not affiliated with GOV.UK, HMRC, Companies House or the ICO. Prices were checked on each provider’s own website on 29 October 2026 and can change. How we make money · Affiliate disclosure
Not financial advice: this page is general information to help you understand your options. It is not financial, tax, legal or insurance advice, and we don’t offer or arrange credit or insurance. Check the linked official pages and speak to a qualified adviser about your situation.
A separate business account is one of the first things most new businesses set up. This page compares the features that matter in your first year. We compare current accounts only. We don't cover overdrafts, loans, credit cards or other borrowing.
Do you legally need a business account?
If you set up a limited company, the company is a separate legal person, so it needs its own bank account in the company's name. Company money is not your money. GOV.UK explains the company's duty to keep records in GOV.UK: Company and accounting records.
If you are a sole trader, there is no general legal requirement to open a separate business account, but it is still sensible. Keeping business income and spending in one place makes it much easier to keep the records HMRC asks for (GOV.UK: Business records if you're self-employed) and to fill in your tax return. Some personal accounts also have terms that don't allow business use, so check yours. Our guide to separating business and personal money goes into this in more detail.
What to compare
- Monthly fee: some accounts have no monthly fee, others charge a subscription with extra features.
- Protection of your money: check that the account is with a bank whose deposits are protected by the Financial Services Compensation Scheme (FSCS). Some app-based providers hold your money with a partner bank, which is where FSCS protection comes from. You can check this with the FSCS: Check your money is protected tool.
- Who can open one: some accounts are for sole traders only, some for limited companies, and some have limits on the number of owners.
- Paying in cash: if you take cash, check where and how you can pay it in, and what it costs. Many app-based accounts charge for cash deposits at the Post Office.
- Invoicing and receipts: some accounts can create invoices and capture receipts from the app.
- Accounting links: check the account connects to the software you plan to use, such as Xero, QuickBooks or FreeAgent. Some accounts include their own bookkeeping tools.
- Card payments: some banks offer their own card readers, which can pay out straight into the account.
- Support: phone, chat or branch, and whether help is UK-based and available out of hours.
Account features compared
Figures below were checked 29 October 2026 on each provider's own website. Prices change, often with introductory offers, so always check the provider's page before you apply. Fees shown exclude VAT where the provider says so.
| Provider | Monthly fee (as published) | Features worth knowing | Source |
|---|---|---|---|
| Tide | Free plan with no plan fee; paid plans: Smart £12.49/m, Pro £27.49/m, Max £69.99/m | App-based account; eligible deposits protected through its banking partner (see Tide's page for details). Tide also sells a card reader (see our card reader comparison). | tide.co pricing |
| Starling (sole trader account) | No monthly fees, as stated on Starling's page | Free invoicing; built-in, HMRC-recognised bookkeeping tool for Making Tax Digital; connects to Xero, QuickBooks and FreeAgent. Post Office cash deposits cost 0.7% (minimum £3). | starlingbank.com sole trader account |
| Mettle (from NatWest) | See Mettle's site | For sole traders and limited companies with up to two owners. FreeAgent accounting software included. Optional quotes feature for £4 a month. Eligible deposits protected up to £120,000 by the FSCS, as stated on Mettle's page. | mettle.co.uk |
| Countingup | From £5 a month after a 3-month free trial; £12 or £20 a month at higher monthly deposit levels | Business account combined with bookkeeping. 3 free transfers and Direct Debits a month, then 27p each; £1 per ATM withdrawal. | countingup.com pricing |
| Monzo Business | See Monzo's site | Check Monzo's current plan page for features and fees. | monzo.com business banking |
| High-street banks (for example Barclays, HSBC, Lloyds, NatWest, Santander) | Varies; many offer an introductory free period | Branch access and cash deposits can be easier, which may matter if you take a lot of cash. Compare tariffs after any free period ends. | Each bank's own business pages |
We have no paid relationship with any provider in this table. The links are plain links, not affiliate links. If that ever changes, we will label the link "Ad" as our affiliate disclosure explains.
How to choose in five minutes
- If you handle a lot of cash, put cash deposits first, and compare branch and Post Office options and costs.
- If you plan to use accounting software, check the account connects to it, or choose an account with bookkeeping built in.
- If you are a sole trader just starting, a no-monthly-fee account is usually enough at first. You can switch later.
- Check FSCS protection on the provider's site and with the FSCS: Check your money is protected tool.
- Read the full tariff for things you will actually use: transfers, cash, international payments and replacement cards.
What you'll need to open an account
Providers will check your identity and your business. Sole traders usually need ID and proof of address. Limited companies also need the company number from Companies House and details of directors and people with significant control. Our legal setup guide explains how to register a company. Opening an account can involve a credit check, so read the provider's terms first.
Moving money: pay yourself properly
Sole traders can move money from the business account to their personal account; this is not a salary, and you pay tax on profits through Self Assessment. Directors of a limited company take money out as salary, dividends or expenses, each with its own rules. GOV.UK explains these in GOV.UK: Taking money out of a limited company.
Why we don't cover overdrafts or business credit
Borrowing can help some businesses, but it is a regulated financial product and the right choice depends entirely on your circumstances. New Business HQ does not promote credit. If you are thinking about finance, start with the free, impartial guidance from the British Business Bank and Start Up Loans, and speak to an accountant.
Official sources
- GOV.UK: Business records if you're self-employed
- GOV.UK: Company and accounting records
- FSCS: Check your money is protected
- British Business Bank: Business guidance
More tools & services
- Payments & card readers
- Accounting & bookkeeping
- Websites & domains
- Marketing
- Printing
- HR & payroll
- Insurance (info only)
← All tools & services Your first-year roadmap
Last checked 29 October 2026. Spotted something out of date? Let us know.