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 Lite
9.8 Excellent| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
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.
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Tide Free Account
9.4 ExcellentTide 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.
Revolut Pro Account - for freelancers
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.
Zempler Bank Business Go Account
8.3 GreatZempler 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.
ANNA Business
7.3 Great| Account fee | £14.90 per month (waived in first month) |
|---|---|
| Arranged overdraft | |
| Requires credit check |
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.
| Account fee | £14.90 per month (waived in first month) |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Sole Trader Current Account
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
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.
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Wise Business Account
| Account fee | Free (Registration fee of £45) |
|---|---|
| Arranged overdraft | |
| Requires credit check |
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.
| Account fee | Free (Registration fee of £45) |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Mettle by NatWest Mobile Account
8.3 Great| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Mettle (owned by parent bank NatWest) is a business account designed for sole traders, so it’s a great option for freelancers. You can open an account in a matter of minutes and there’s no monthly fee to use the account, which will be welcome news to freelancers looking to streamline outgoings. It’s also free to use your card abroad. The account comes with a suite of useful business tools such as custom invoicing, expense management and reporting, and a “money pots” feature to set aside future outgoings such as tax payments or savings. You can also integrate your account with accounting software like FreeAgent, Xero and QuickBooks.
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
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.
When choosing a freelancer bank account, it’s worth looking at the following:
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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