If you’re a freelancer, you should have a separate bank account to be able to receive all those lovely payments from the work you’ve carried out. You can use your personal account as long as you are not operating as a business but it is not recommended. A bank account for a freelancer is simply a bank account that you use for your freelance payments and expenses. It works in the same way as most other bank accounts.
As a freelancer, you don’t strictly need to have a business bank account. That’s because your business (or self-employment) isn’t legally separate from you.
As a result, there’s nothing stopping you from using a personal bank account for your freelance payments and expenses – particularly if these are fairly straightforward. You could use your normal, everyday bank account or open a separate personal account just for your freelance finances.
But there are benefits to opening a separate business bank account. For a start it will make it easier to separate your business and personal finances. What’s more, these accounts tend to offer more business-specific features, so you might find it more beneficial – particularly if your business needs are more complex.
Monzo Business comes in 2 sizes – the free Lite account or the Pro account, which costs £5 a month. These accounts have many of the same features that Monzo personal accounts have, including budgeting and categorised spending, instant notifications and Pots to separate your money. If you opt for the Pro account, you can even set up Tax Pots, which let you automatically put aside a percentage of your earnings for taxes. Pro also has accounting integration with Xero, QuickBooks and FreeAgent, as well as the ability to create, send and track invoices in the app. Monzo has FSCS protection, too.
Fee-free spending abroad.
Custom payment links.
Pots to separate money.
FSCS protected.
No branches.
Charge to deposit cash.
Accounting software only available with Pro account.
Open a Tide account and earn 4.33% AER each month on your business savings.
Tide offers 4 different business bank accounts, from its Free account up to its Cashback account, which has a monthly fee of £49.99 + VAT. Having the different tiers means you can start off with the free account and upgrade as your business grows. You’re able to create invoices in the app and integrate with accounting software, including Clear Books, FreeAgent, KashFlow, QuickBooks, Reckon One, Sage and Xero. If you do decide on the free version, transfers cost 20p, unless they’re to another Tide account. If you make lots of transfers it might be more economical to upgrade to a paid account. Tide has FSCS protection.
24/7 customer support
Categorised spending
FCA regulated
Quick set-up
No monthly fees
Easy to manage accounts and track payments within the app
Ability to set up direct debits and standing orders
Can receive online bank statements
No branches - all done via the web
Doesn't accept cheque deposits
No personal accounts
No international transfers or interest offered
Accounting integrations
Clear Books FreeAgent KashFlow QuickBooks Reckon One Sage Xero
Earn up to 1.2% cashback plus get a £20 sign-up bonus with Revolut Pro.
Revolut is a finance app known for its international payments and currency exchange features. Revolut Pro is its offering for freelancers. It allows you to earn cashback on all Pro debit card purchases and accept payments via multiple methods such as Apple Tap To Pay, Revolut Reader, payment links, QR codes and invoices. Keep in mind you need to have a Revolut Personal account to open a Pro account and you can only use it for business spending. It doesn't have any accounting software integrations. Revolut is registered with the FCA but doesn’t have FSCS protection.
No monthly fees
Earn cashback on expenses
Multiple payment method
You need to open a Revolut Personal account first
Can only be used for business spending
Revolut doesn't allow accounts for some jobs
Accounting integrations
FreeAgent Xero
Zempler Bank (formerly Cashplus) - Zempler Bank (formerly Cashplus) Business Go Account
No annual or monthly fee when you apply using the Finder link.
Zempler Bank (formerly Cashplus) has 2 options for freelancers – Business Go and Business Extra. The former is free and the latter costs £9 a month. If you’re after a basic business account so you can receive payments and don’t need a whole lot of functionality then the Go account will do the job. However, you only get 3 free payments or transfers each month (20p for each additional one) compared to 20 with the Extra account. Both let you connect to accounting software such as Clear Books, FreeAgent, KashFlow, QuickBooks, Sage and Xero. The Extra account also comes with 0.5% cashback on spending, which might cover the monthly fee if you need to make lots of purchases. Deposits are protected by the FSCS.
Open an account in 5 minutes
"Cashplus iDraft" once eligible
Currency cards for travel
Online services in addition to the mobile app
Charge to have your bank card issued
Traditional bank still needed for majority of your business finance needs
Earn 1% cashback for paying with your ANNA card in selected categories.
ANNA Money is an app-only solution for freelancers and business owners. It isn’t a bank, so doesn’t come with FSCS protection, but it is registered with the FCA. ANNA comes with accounting integration using Clear Books, FreeAgent, QuickBooks, Sage and Xero. It also offers 1% cashback on eligible card transactions. There’s a free pay-as-you-go option and 2 paid accounts, so you can tailor the account to your needs. You may still need another bank account if ANNA doesn’t offer everything you require, but its money management features are well liked by its users. In Finder’s 2024 Customer Satisfaction Survey, 83% of ANNA’s users said they’d recommend the brand to a friend.
24/7 in-app support.
Invoice and expenses services in the app.
Pay-as-you-go option means you only pay for features that use.
Starling’s option for freelancers is its sole trader bank account. There’s no monthly fee and UK bank transfers are free. It also connects to FreeAgent, QuickBooks and Xero. Starling’s free offering stacks up nicely against the competition, including some features as standard that other accounts charge for. If you’re after a bit more, then you can pay £7 a month and get the Business Toolkit. With this you can create, send and track invoices, automate expenses, record VAT and connect to HMRC to submit VAT returns. It also lets you upload bills and schedule payments to manage cash flow. Starling is a bank so it offers FSCS protection.
No joining or monthly fees.
Works with Quickbooks, Xero and FreeAgent.
Spending insights to help manage your company's finances.
Wise’s business account is a good option if you’re a global-facing business. It allows you to receive over 40 currencies and send money to more than 70 currencies. You can also set up local bank details in the US, Eurozone, Australia, New Zealand and the UK, which is useful to receive payments from platforms such as Freelancer.com or Upwork. Wise lets you integrate with accounting software including Xero and QuickBooks. There are no monthly fees, but there is a £45 fee to set up the account. Wise is registered with the FCA in the UK and also regulated in multiple countries, but as it isn’t a bank it doesn’t have FSCS protection on deposits.
No monthly fees.
FCA regulated.
Integration with accounting software, including Xero and Quickbooks.
£45 fee to set up the account.
No FSCS protection.
Accounting integrations
FreeAgent QuickBooks Xero
How can a separate bank account for freelancers help?
A good freelancer bank account will help you to manage your income and expenses.
If you choose a business bank account, it will often include certain business tools, such as automated invoicing, accounting software and payment tracking features – all of which can make it much easier to file your tax return and stay on top of your finances.
Opening a business bank account rather than a personal account can also make you look more professional.
Some providers, such as Revolut, provide separate accounts specifically for freelancers. Revolut Pro, for example, sits alongside your personal Revolut account, but must only be used for business spending. Because it is separate from a Revolut Personal account, it has its own features to help you create invoices and track payments.
What should I look for when choosing one?
When choosing a freelancer bank account, it’s worth looking at the following:
Fees: Business bank accounts are more likely to charge an account fee and/or fees for certain banking transactions. As a freelancer, you’ll want to keep these fees to a minimum, so look for a low-cost option. Check out our guide on best free business bank accounts in the UK.
Integration with accounting software: Many business bank accounts will integrate with accounting software such as Xero and QuickBooks. This can make your life a lot easier when you’re filing your tax return.
Business tools: Also check whether the account comes with features such as automated invoicing and payment trackers. Some accounts let you set aside money into different pots to help you cover tax and other bills.
Credit options: If you think you might need an overdraft or a credit card, check whether you can apply for these after opening your account.
Account management: Are you happy banking via an app or online or would you prefer to be able to pop into your local bank branch for certain transactions?
FSCS protection: Check whether the money in your account is protected through the Financial Services Compensation Scheme (FSCS). This protects funds of up to £85,000 per person, per financial institution. Some online providers won’t be FSCS protected, but will safeguard your funds in other ways.
International payments: If you work with clients overseas, it’s worth looking for an account that charges low fees to send money abroad and lets you hold multiple currencies in your account. Check out our guide on best multi-currency business accounts.
Pros and cons
Pros
A freelancer bank account can help you keep your personal and business finances separate
You can benefit from useful tools such as invoicing support and accounting software integration
You might get access to credit such as an overdraft or credit card
Having a separate account for your business makes you look more professional
Cons
Fees often apply to business accounts
Bottom line
You can use either a personal or business bank account for your freelancing business – the choice is yours. Business bank accounts tend to offer a wider range of benefits, but can charge higher fees.
It therefore pays to compare your options carefully and consider your specific needs to be sure you find the right account for you.
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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio
By switching your business bank account, you may be able to reduce your monthly fees or take advantage of different features like smart bookkeeping tools.
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