Opening a business bank account in the UK can be easy as long as you know what you want from an account. Whether you’re a small business, a sole trader or a larger business with employees, a business bank account can help you run things more smoothly. Discover what you need to know about opening a business bank account in the UK so you can grow your business without hassle.
Latest reviews of business accounts you can open online
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It’s quick and easy to open an account online with Revolut. Simply select whether you want to open a corporate account or a freelancer account and enter a few details including your email address. If you’re looking to open a corporate account, there are 4 different pricing plans to choose from. If you’re just starting out, the Basic plan has no monthly fee and might suit your business initially, though it has a limited range of features. Alternatively, if you’re after a freelancer account, there are 3 plans to choose from, including one with no monthly fee.
Pros
Flexible account options
Mobile app with lots of good features
Ability to issue cards to all employees
Easy to apply
Freeze card if lost or stolen
Safe and secure
Free purchases
Cons
Basic account does not include many free transactions
On application (subject to status, eligibility and The Co-operative Bank's Lending policy)
Requires credit check
This business account from the Co-operative Bank has no monthly fee and can be opened and managed online. To be eligible, you must be aged 18 or over and a UK resident with a business address in the UK. You must also be a sole trader or a limited company that is owned by one person. Once you’ve completed the online application form, you should receive your account details within 2 days. The account comes with free accounting software integration and free support tools to help your business succeed. You’ll also have access to partnership business services such as insurance, HR tools and tech support.
Pros
Free bank transfers
Access to a payment app
Multiple ways to bank
Cons
Monthly service charge applies after 30 months
Only suitable for sole traders or single directors
Fees apply to certain transactions
Accounting integrations
QuickBooks, Sage, Xero, Multiple providers
Account fee
Free
Arranged overdraft
On application (subject to status, eligibility and The Co-operative Bank's Lending policy)
You can open a Tide business account online in a matter of minutes. Simply state whether you want to open an account as a registered company or a sole trader and have your mobile phone ready to verify your identity. You’ll need to provide your email address and a few personal and business details. There are 4 plan types to choose from, including one with no monthly fee. If you’re a director of a limited company you can also register your limited company and open your account in one go, with Tide paying the incorporation fee on your behalf.
Pros
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
You can open a Mettle business account in a matter of minutes if you’re happy to do so via the app. You can download the Mettle app from the App Store or Google Play Store. You’ll then need to complete the application form, providing a few details about yourself and your business. You’ll also need to verify your ID and provide a business document. Once approved, you’ll receive your account number and sort code. The account has no monthly fee and to open one, you’ll need to be a sole trader or limited company with up to 2 owners, and a balance limit of up to £1 million.
It’s easy to open an account with ANNA online - simply enter your email address and provide a few details about yourself and your business and be ready to verify your ID. Opening your account takes as little as 3 minutes and you’ll receive your ANNA Mastercard within 5 working days. ANNA can also help you officially register a company with Companies House and help you sort your taxes. You’ll be able to create pots in your business account to help you save for taxes, salaries and other expenses, as well as earn cashback when you use your debit card to pay for business expenses.
Pros
24/7 support
Fast set-up
Invoice and expense services within the app
Ability to connect other provider accounts to the ANNA app through Open banking
Cons
No credit or overdrafts available
Still require a traditional bank account for majority of your business financial needs
The Business Lite account from Monzo has no monthly fee and you can easily apply online. Enter your email address and a few personal and business details such as the industry you’re in, your business address, and the type of business you run. You might then need to provide identification for verification purposes. Once approved, your card should arrive within a couple of days and your account will be up and running. The account offers 24/7 customer support and you can also apply for an overdraft on the account if you’re a sole trader.
Pros
Fee-free spending abroad.
Custom payment links.
Pots to separate money.
FSCS protected.
Cons
No branches.
Charge to deposit cash.
Accounting software only available with Pro account.
The key difference between a business bank account and a personal current account is you can open it in your business name, so it can receive payments made out to your company name.
A business bank account can also be really handy, as it allows you to separate your personal finances from your company’s money. Some business bank accounts can also help you issue invoices, run your payroll – useful if you have employees – and make it simpler to file your accounts and tax return.
Other than that, a business bank account is much the same as your current account. You can make payments from it, accept payments into it and possibly have an overdraft facility, too.
Our expert says: Have you considered an online-only business account?
"If you want to open a business bank account fast, it’s easy to do so with an online-only bank account. An ever-increasing number of digital banks are entering the market, meaning there’s a wide range of accounts to choose from.
Opening a business bank account with a traditional high street bank can often take a few weeks. Yet many online-only business bank accounts can be up and running the same day. Some providers, such as ANNA and Tide, even say your account can be opened within a matter of minutes. The application process is straightforward, and you’ll usually need to provide a few personal and business details. You’ll often be asked to take a photo of your driving licence or passport (and perhaps a selfie) so the provider can verify your identity. But once you’ve done that, your account could be ready to go.
Of course, you won’t have any branch access with an online-only bank account, but most banking transactions can be carried out online anyway. Depending on the account, you might be able to pay in cash deposits at any Post Office or Paypoint location, though a fee usually applies. If this is important for your business, be sure to pick an account that allows this and has the lowest fees."
You can open a business bank account in the UK if you are a sole trader, a limited liability partnership or you run a business registered with Companies House.
Whether you are eligible to open a business account with specific banks and building societies could also depend on their criteria. For example, you may need to meet their turnover requirements.
If you aren’t a UK resident, things are a little bit more complicated, depending on whether you live in the UK or where your company address is registered.
As a non-UK resident living here
You don’t need to be a UK resident to open a business bank account in the UK. If you are a sole trader, you may need to prove you live in the UK and pay taxes to HMRC through self-assessment. If you are a business owner, your company address needs to be in the UK.
As a non-UK resident not living here
It is possible to open a business bank account in the UK if you don’t live here, but it can be tricky. Banks will be concerned about the possibility of money laundering and fraud. To get around this, your bank may only offer you an account if you are the director of a UK business registered with Companies House. Some banks may also insist on meeting you before you can open an account.
What do I need to open a business bank account in the UK?
When you are ready to open a business bank account, you’ll need to show a variety of documents to prove who you are, what your business does and who runs it.
Proof of ID documents
Your bank will want proof of your ID and possibly anyone who will access the account or owns part of the business.
You will be asked to provide:
Driver’s licence, passport or ID card.
Contact details, including your business and personal addresses, phone numbers and email addresses.
Proof of UK address
You’ll most likely also be asked for proof of address for yourself and your business. This can be one of the following:
A recent bank, credit card statement, utility bill or council tax bill as proof of your home address.
HMRC letters or a utility bill as evidence of your business address.
Business verification documents
Your bank will also want to verify your business to comply with financial regulations. You’ll need to provide:
Companies House registration number or certificate of incorporation if you have a limited company.
Proof of your business’s tax status – this could be your Unique Taxpayer Reference (UTR) or National Insurance number.
You may be asked for your projected annual turnover and how many employees you have.
The bank may also ask for proof your business is up and running. This could be a website, social media account or evidence you are registered with an industry body.
Opening a business bank account in 3 steps
Think a business bank account is for you? Follow these simple steps to find your ideal account and get it up and running.
1. Research – Compare the best business bank accounts, check their eligibility and work out which one is right for you. 2. Apply – Fill out the application forms for your chosen account. 3. Prove yourself – Provide the evidence of your ID, address and business that your bank requires.
Bottom line
Opening a business bank account in the UK is relatively straightforward, as long as you have the correct documents to hand and know what type of account would suit your business. If you live outside of the UK, the process is slightly more complicated but still possible.
A business bank account can help you run your small business or side hustle more smoothly by separating your work finances from your personal money. However, it’s important to research accounts and check eligibility requirements before submitting your application. Check out our guide for the best business bank accounts in the UK.
Frequently asked questions
That depends on your situation. If you own a limited company, you are legally obliged to have a business bank account, as your business is a separate legal entity to you.
Sole traders don’t have to have a business bank account. As far as the taxman is concerned, your business and personal income are the same, so you can use your personal account for your business needs. However, a business bank account may make life simpler, as you can keep your business transactions – both income and expenses – separate from your personal money. We have written a more detailed guide on this.
You can switch bank accounts if you decide you want a better deal. Simply compare bank accounts and then get your new bank to arrange to switch. If you employ fewer than 50 people and have an annual turnover of less than £6.5 million, you can use the Current Account Switch Service. Banks and e-money providers often run special promotional offers as an incentive to sign up.
A bad credit history could affect your ability to open a business bank account. How much it impacts your application depends on how bad your credit is. You may find it particularly difficult if you’ve been declared bankrupt in the past 5 years or have a County Court Judgement (CCJ). There are several things you can do to improve your credit score and increase your chances of opening a business bank account. There are also business accounts designed for those with bad credit.
Banking scores
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Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Ruth Jackson-Kirby is an experienced personal finance journalist. She has been writing about everything from credit cards to pensions for almost 2 decades. Her work has appeared in The Mail on Sunday, The Sunday Times, Good Housekeeping, The Guardian and MoneyWeek. When she isn’t writing, Ruth enjoys walking her dogs, renovating properties and eating cake. She also used to enjoy travelling, but then she had kids. 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.
Considering a Revolut Business account? We take a closer look at the features and price plans available with these digital-only accounts.
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