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.
Tide Business Bank Account (Free)
8.7 GreatTide 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.
Zempler Bank Business Extra
8.7 Great| Account fee | £9 per month |
|---|---|
| Arranged overdraft | |
| Requires credit check |
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.
| Account fee | £9 per month |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Revolut Pro Account - for freelancers
Revolut is a bank 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 a fully licenced UK bank and has FSCS protection.
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:
Earning money online is becoming more and more popular. 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.
Most banks let you apply for a business account entirely online — you might even have your account open in a matter of minutes.
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.
Learn more about Juni’s business account for ecommerce and online marketing entrepreneurs.
NatWest offers a range of business banking options including current accounts, savings accounts and business insurance, as well as specialised accounts for startups and charities.
The Co-operative Bank offers 5 business accounts options for a range of circumstances.
Lloyds offers a range of business accounts for both startups and established businesses. Compare deals, find the one for you and check how to apply.
Compare all the business accounts offered by Barclays and learn how much it costs and which documents you need to open one.
Considering a Cashplus business account, which you can open without a credit check? We take a closer look at who it is best suited to.
Challenger Countingup draws accounting and business banking together in one account. Our review looks at how it works and what it costs.
Is Tide’s current account for businesses right for your company? We take a closer look at all of the fees and features of a Tide account.