Compare Business Bank Accounts

  • A dedicated business bank account allows you to separate your personal and business finances
  • Choose an online only account, or a bricks and mortar bank with a branch service.
  • Compare the best deals, the lowest fees, deposit protection, overdraft facilities and more.]

Read Our Guide to Business Bank Accounts in the UK

What is a Business Bank Account?

A business bank account is used only for business, rather than personal transactions. Payments will be made and received in the business’s name, as opposed to directors personally.

There’s nothing especially different about them to a normal account. But some business accounts do come with functionality designed to make managing a business easy, such as: tracking expenses, managing cash flow, calculating tax liabilities and integrating with accounting software.

Business bank accounts are intended specifically for sole traders, partnerships, companies, clubs, societies or charities. They are also a legal requirement if you wish to set up a limited company in the UK.

Some people operating as sole traders do choose to set up a business bank account anyway, as it can be helpful to keep work and personal transactions clearly separated.

Who Offers Business Bank Accounts?

Most of the high street banks offer a business account. These include Bank of Scotland, Bank of Ireland, Barclays, Clydesdale Bank, HSBC, Lloyds Bank, Metro Bank, NatWest, Royal Bank of Scotland, Santander, the Co-operative Bank, TSB and Yorkshire Bank.

Many specialist ‘challenger’ banks, often operating purely online, now offer highly competitive business bank accounts, too. These include: Anna, Atom, Monese, Monzo, Revolut, Starling, and Tide.

Who Needs To Open a Business Bank Account?

You’ll need to set up a business bank account if you’ve set up a limited company, partnership, or charity registered at Companies House.

You should be an officer of the company to do this, usually a director or company secretary.

Sole Trader – Sole Traders do not legally require a business account as there is no legal seperation between their business and personal finances

Freelancer – Freelancers are allowed to have business accounts if operating as a limited company

Limited Company – Limited Companies do have a legal requirement to operate from a business account rather than the personal bank accounts of directors.

Are Business Bank Accounts Free?

While most business bank accounts offer an initial free period without charges, there will be fees at some point.

Commonly, new businesses will have free access to a core range of features such as withdrawals, payments, transfers and direct debits, which other services, such as overdrafts will carry charges.

How do I Open a UK Business Bank Account?

To open a business bank account in the United Kingdom, you’ll need the following:

  • Official ID such as a drivers license or passport
  • Proof of your personal address: i.e. council tax statement or bank statement
  • Proof of your legally registered business address: i.e. correspondence from HMRC or Companies House, a utlity bill, a bank statement, or rental agreement.
  • Estimated annual turnover of the business
  • Copy of your Companies House formation document, including your limited company number
  • Number of Employees
  • Tax Status: i.e. vat registered
  • Some banks may ask for details of your personal financial situation, including documents to demonstrate you have a clean credit and banking history.

How Long Does it Take to Open a Business Bank Account?

While applying for a business bank account can take as little as ten minutes, it usually takes at least one to four weeks for the compliance check to be completed.

Can you Open a Business Account With bad Credit?

You will likely find it more difficult to open certain business bank accounts with bad credit. However, certain banks offer specialist ‘no credit check’ accounts to allow individuals with poor credit history to open them. These accounts will have slightly less favourable terms than a regular account in order to cover the bank’s heightened risk, but otherwise work exactly the same.

What are the Pros and Cons of Business Bank Accounts?

Advantages

  • Separates personal and business transactions
  • Builds a business credit rating
  • Easier tax reporting to HMRC
  • Makes the business look more professional
  • financial protection for yourself and your business

Disadvantages

  • Business bank accounts generally come with higher fees than personal accounts
  • Having a second account mean more admin
  • May come with a minumum deposit requirement
compare business bank accounts

Compare the Best Business Bank Accounts

We’ve collected the very best business bank accounts available in the UK right now so you can easily compare them. Whether you want to filter via annual turnover requirements, sole trader eligibility, overdraft limits or monthly fee, we’ve got you covered.

The accounts listed here are business current accounts, but if you’re interested in business savings accounts we can help with that over here.

In order to ascertain whch account is going to be right for you we suggest making a detailed checklist of your requirements, which may include the following:

  • Monthly, Annual or Per Transaction Fees?
  • FSCS Deposit Protection
  • Overdraft
  • App / Online / Bricks and Mortar
  • No Credit Checks
  • Accountancy Software Integration
  • What are the fees for cash deposits?
  • International transaction charges
  • ATM cash withdrawal fees?