Compare self-employed bank accounts in the UK 2022

Discover everything you need to know about opening a business bank account if you're self-employed.

It can be a good idea to create a separate bank account to manage your finances when you’re self-employed. A number of providers offer bank accounts that have been designed for those who are self-employed.

Compare bank accounts for the self-employed

Table: sorted by promoted deals first
1 - 9 of 120
Name Product Account fee Bank transfers Interest (AER) Accounting integrations Arranged overdraft Account management Key benefits Link
OFFER
Mettle by Natwest
Free
Free
0% AER
FreeAgent, QuickBooks, Xero
App
Comes with a suite of free accounting software to integrate with (conditions apply)
Go to site
View details
Finder Award
EXCLUSIVE
Tide Free
Free
£0.20
Free if both accounts are with Tide
0% AER
Clear Books, FreeAgent, KashFlow, QuickBooks, Reckon One, Sage, Xero
Online & app
FINDER EXCLUSIVE: Get 5 months free transfers when using the code FINDER5FREE. Plus register your limited company for free (usually £12) and open a Tide account in one go: choose 'Register a company' from the Tide homepage menu. T&C's apply.
Go to site
View details
FREE TRIAL
Business Current Account - e-Payments Plan - Start-ups
£8.50 per month
(waived in first 12 months)
Free for EU digital transfers (SEPA)*
0% AER
Multiple providers

Subject to application, financial circumstances and borrowing history.
Branch, online, app & phone
No monthly account fee for 12 months on the Start up business plan, thereafter a monthly charge of £8.50 applies. Other charges apply. *Charges for other bank transfers and card payments apply. Visit here for more information. Free invoice and accounting software, provided by FreshBooks, with your Barclays business account. T&Cs apply.
Go to site
View details
OFFER
Cashplus Business Bank Account
Free
£0.30
Free for first 3 payments sent each month (£0.30 for every transfer thereafter)
0% AER
Clear Books, FreeAgent, KashFlow, QuickBooks, Sage, Xero

By invitation
Online & app
No annual or monthly fee when you apply using the Finder link
Go to site
View details
FREE TRIAL
The Co-operative Bank Business Current Account
£10
(waived in first 30 months)
Free
0% AER
N/A

On application (subject to status, eligibility and The Co-operative Bank's Lending policy)
Branch, online, app & phone
Free everyday business banking for first 30 months. Sole traders or Single Directors only. Apply online. Charges apply for cash and cheque transactions & other special services. Subject to status, eligibility and T&Cs.
Go to site
View details
Countingup Starter Business Account
£3 per month
(waived in first 3 months)
£0.30
0% AER
N/A
Online & app
0.3% cashback on purchases for new and existing customers, available until 31 of May.
Go to site
View details
OFFER
Juni Account - Made for ecommerce
Free
Free
0% AER
Xero
Online
IBAN accounts in EUR, USD and GBP available. New customers get 2% cashback on all their virtual Juni card spend for the first 30 days. Made for ecommerce companies.
Go to site
View details
OFFER
Small Business Account
£12.50 per month
(waived in first 3 months)
From £0.30
0% AER
N/A
Online, app & phone
No monthly account fee for the first three months
Go to site
View details
Kapaga Standard Business Account
Kapaga Standard Business Account
£59.99 per month
0% AER
N/A
Online
Go to site
View details
loading

Compare up to 4 providers

Reviews of self-employed business accounts

HSBC - Kinetic Current Account

No monthly account fees for 12 months, thereafter a monthly charge of £6.50 applies.
This everyday business bank account from HSBC has no monthly maintenance fee for the first 12 months, making it ideal if you're only recently self-employed. The fee is £6.50 per month after this. You can apply for the account in minutes via the app and most accounts are opened within 48 hours. The account lets you manage direct debits, standing orders and future payments with ease. Customers can also apply for an overdraft of up to £30,000 in-app, get insights on their business spending with automatically categorised transactions, and keep track of their finances with a monthly breakdown of cash flow. You'll also be able to freeze your debit card if you misplace it, and unfreeze it again when found. Plus you can scan and deposit cheques in the app and make payments of up to £25,000 per day. Larger payments can be made via business telephone banking.
  • Easy to apply for and manage
  • Arranged overdraft
  • Useful app features to help you track spending
  • No monthly fee for 12 months
  • Interest is charged on overdraft
  • Monthly maintenance fee applies after first 12 months
  • No interest paid on credit balances
Account fee £6.50 per month (waived in first 12 months)
Bank transfers Free
Accounting integrations QuickBooks
Sage
Xero
Requires credit check Soft search with no impact on credit score
Overdraft



Tide - Tide Free

Tide Free

★★★★★

Go to site Read review
FINDER EXCLUSIVE: Get 5 months free transfers when using the code FINDER5FREE.
You can choose between three different pricing plans with the Tide business account. This includes a free option which could be suitable for freelancers, sole traders and contractors. You can then upgrade your account at any time as your business grows, but a monthly fee will then apply. All options enable you to sync your account with accounting software like Quickbooks, Sage, KashFlow and Xero, as well as automatically categorise transactions, send, pay and track invoices and upload receipts. ATM withdrawals cost £1 each, while other transaction fees will depend on the plan you have chosen. You can hold up to 5 business accounts and get 'read access' for team members, allowing them to view and download transactions. Opening an account can take as little as 10 minutes and no credit checks are carried out. Your Tide card should arrive within 2 to 4 working days.
  • 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
Account fee Free
Bank transfers £0.20

Free if both accounts are with Tide
Accounting integrations Clear Books
FreeAgent
KashFlow
QuickBooks
Reckon One
Sage
Xero
Requires credit check
Overdraft



Starling Bank - Business Current Account

Business Current Account

★★★★★

Read review
Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm).
This business account from digital bank Starling has no monthly fees or UK payment charges, making it ideal for sole traders and limited companies. You can apply for the account with ease via the app and you'll also benefit from free 24/7 UK support via the app, phone or email. You can integrate the account with accounting software Xero, Quickbooks and FreeAgent, as well as benefit from automated business spending categorisation, receipt capture, free ATM withdrawals and fee-free spending on your card abroad. You can also choose to pay to bolt on extras such as a Business Toolkit to create and send invoices, record VAT and submit your VAT return, and carry out HMRC tax calculations. Or you can open a Euro business account for exchanging and holding euros and a US dollar business account for holding, sending and receiving US dollars.
  • Add the new Business Toolkit onto your free Starling account and get the first month free of charge (RRP £7pcm)
  • Completely free UK current account opened and ready to use in 20 minutes
  • Safe and secure
  • Fully licensed by the FCA and PRA
  • Free to use your card abroad including ATM withdrawals, splitting the bill made easy with "settle up" feature, competitive and comprehensible overdraft fees
  • Decent interest rate paid on current account balances
  • Efficient app offering a range of good features such as budgeting tools and saving features
  • Has a marketplace offering competitive pensions
  • Mortgages and insurance from other growing fintech companies
  • Teen account options
  • 24/7 customer support (for all types of enquiries)
  • Relatively new so does not offer every feature, e.g. mortgages
  • No bank branches, all done via the web
  • Only available to UK residents
Account fee Free
Bank transfers Free
Accounting integrations FreeAgent
QuickBooks
Xero
Requires credit check Soft search with no impact on credit score
Overdraft



Lloyds Bank - Business Current Account

12 months' fee-free monthly and transactional banking for switcher customers.
Lloyds offers a business account designed for start-up and small businesses that have an annual turnover of less than £3 million. The account offers fee-free everyday business banking for new businesses for the first 12 months, after which you'll pay a monthly account fee of £7. Certain transaction fees will also apply after 12 months, such as for cheques and cash payments. The account also offers dedicated support from Lloyds' UK-based business management team, plus access to useful guides and business tools. You can apply for the account online using the Current Account Switch Service and you must be aged 18 or over and a sole trader, partner or company director. It usually takes up to 4 weeks to open your account which can be managed via online banking or via the app. You can also apply for a business overdraft and integrate your account with Business Finance Assistance (for a fee).
  • Free everyday banking for first 12 months
  • Free electronic payments
  • Access to Business Finance Assistance and Lloyds Bank Academy
  • Fees apply after first 12 months
  • No interest paid on credit balances
  • Fee applies to Business Finance Assistance after three months
Account fee £7 per month
Bank transfers Free
Accounting integrations N/A
Requires credit check Soft search with no impact on credit score
Overdraft





Up to £5,000 subject to eligibility and application

Do I need a business bank account or can I use my personal one?

If your business is set up as a partnership or a limited company, you’ll have to run your business finances through a business bank account, for tax and legal purposes.

If your business is a sole proprietorship, you are still taxed as an individual, so there’s no obligation for you to open a business bank account.

However, you may still find it useful to separate your business and personal expenses.

Can you transfer money from a business account to a personal one?

Yes, most business owners will pay themselves a salary – and perhaps an occasional bonus – from their business account into their personal account.

The important thing to do is to record and declare these transactions, for tax and bookkeeping reasons.

In many cases, these payments will be delivered automatically using a payroll software provider, so that they are automatically recorded and the taxes are paid.

If your business is set up as a partnership or a corporation, all one-off payments to your personal account will need to be signed off by your business partners.

Pros and cons

Pros

  • Business bank accounts allow you to separate your business and personal funds. This makes accounting and bookkeeping far easier.
  • Many accounts include useful incentives and improved rates on international payments.

Cons

  • Business accounts don’t tend to have as many incentives as personal bank accounts.
  • Many of the best business bank accounts have monthly account fees and may charge you for making payments.

The bottom line

For most types of business, it is compulsory to have a business bank account.

Even if this isn’t the case for them, the majority of business owners recognise the advantages of opening one.

Frequently asked questions

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.

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site