In general terms, the answer is no for various reasons, but different rules do apply to sole traders and limited companies.
This will depend on if, as someone who is self-employed, you have set yourself up as a sole trader or a limited company.
If you are a sole trader, there is no legal requirement to set up a business bank account. However, be aware that while some personal bank accounts will let you process work-related payments on a small scale, others stipulate in their small print that you cannot use them for business purposes at all. In that case, you would be breaking the terms and conditions of your personal account, so it is worth checking with your banking provider, and that outcome may mean you need to set up a separate business account.
There are of course other advantages to having a business account as a sole trader. In particular, being able to keep your personal and business finances separate, making it easier to calculate your expenses and your tax bill at the end of the year. Plus many business accounts now come with handy digital tools to help you manage your everyday cashflow.
If you are self-employed and have set yourself up as a limited company, then it is a legal requirement to have a business account if you are using banking services. We explain more on this below.
If you are the owner of a registered limited company, and your business is using banking services, then you legally need to have business account that is separate from your personal account.
This is because a limited company is a separate legal entity. And this rule applies whether you are a single self-employed person trading as a limited company, or you are part of a bigger limited company where you are one of several owners.
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