Best Sole Trader Bank Accounts in the UK (2026)
Tide covers invoicing, expenses, and self-assessment for free. Starling is the genuinely free alternative with no per-transaction charges.
- Tide gives sole traders a free account with built-in invoicing tools.
- Accepts sole traders immediately — no Companies House number needed.
- Track income, capture receipts, and categorise expenses all from the Tide app.
Best Sole Trader Bank Accounts at a Glance
Sole trader banking is materially different from limited company banking: no Companies House number, self-assessment not corporation tax, personal liability, and different eligibility criteria across providers.
We ranked eight accounts that accept sole traders directly. Tide leads for invoicing. Starling is genuinely free. Mettle bundles FreeAgent for single-person businesses.
Traditional banks like NatWest matter only if you deposit cash regularly or need an overdraft — the app-first providers win on everything else.
All Cards at a Glance
Compare key features side by side — tap any row for the full review.
| Provider | Monthly Fee | Best For | Integrations | Action |
|---|---|---|---|---|
| Free | Sole traders and SMEs wanting free banking with built-in invoicing | Xero, QuickBooks, FreeAgent, Sage | View Deal → |
 | Free (Basic plan) | Businesses with international payments or multi-currency needs | Xero, QuickBooks, FreeAgent | View Deal → |
 | Free | Businesses wanting to earn interest on their balance | Limited | View Deal → |
 | Pay As You Go (from £0) | Sole traders wanting AI-powered tax and expense automation | Built-in tax tools | View Deal → |
 | Free | Businesses wanting a full-featured free account with overdraft | Xero, QuickBooks, FreeAgent | View Deal → |
 | Free (Lite plan) | Small businesses wanting clean mobile banking with smart budgeting | Xero, QuickBooks, FreeAgent | View Deal → |
 | Free | Sole traders and small LTDs wanting genuinely free banking | FreeAgent (free included) | View Deal → |
 | £5/month (free for 12 months for startups) | Startups wanting a traditional bank with free FreeAgent | FreeAgent (free for 12 months) | View Deal → |
Data verified against provider websites, April 2026. Sole trader eligibility confirmed directly with each provider. Fees and features may change.
Our Sole Trader Bank Account Picks
Best Overall
Pick Tide if you want invoicing, expense tracking, and receipt capture inside the banking app. Opens in minutes for sole traders with NI number and photo ID. The 20p outgoing fee stays reasonable below 50 payments a month.
Visit TideBest for Freelancers
Starling is the cleanest freelancer fit: zero transaction fees, FSCS protected, and a usable app with receipt capture. If you bill by invoice and don’t handle cash, the combination of £0 cost and overdraft subject to status makes Starling hard to beat.
Visit StarlingBest for Trades and Contractors
NatWest pairs a business current account with FreeAgent bundled free and genuine cash-deposit capability via branch and Post Office. If clients pay you in cash on-site, the trade-off for slower onboarding is worth it.
Visit NatWestBest for Low Fees
Starling and Mettle have zero transaction fees. Mettle bundles FreeAgent free — worth £14.50/month in practice. Both are FSCS protected through their parent banking licences.
Visit StarlingBest for Self-Assessment Tools
Mettle shows your estimated tax liability in real time via its built-in FreeAgent feed: categorised transactions flow straight into your return. Tide’s tax pot auto-reserves a percentage of each incoming payment. Both work on the free tier.
Visit MettleBest for FreeAgent Bundled
Mettle and NatWest both bundle FreeAgent at no extra cost. For a sole trader who’d pay £13–£19/month for FreeAgent separately, this is an immediate cash saving plus MTD-compliant VAT filing if you’ve crossed the threshold.
Visit MettleBest for Cash Handling
NatWest is the only account on this page with genuine cash-deposit capability via branch and Post Office. Starling accepts cash at 0.7% via the Post Office. Revolut, Mettle, and Zempler don’t accept cash at all.
Visit NatWestBest for Newly Self-Employed
Tide, Starling, and Mettle all open to sole traders on day one with no minimum turnover or trading history. Apply on the same day you register as self-employed with HMRC — most complete in under 10 minutes.
Visit TideProviders Compared
Each provider verdict below is assessed specifically on sole trader fit: application path, self-assessment tools, structural limits, and cost at realistic self-employed volumes. We used provider documentation, not marketing claims or comparison-site data.
Zempler Bank Business Go Account
ANNA Money Pay As You Go Account
Starling Bank Business Current Account
Mettle Business Bank Account
NatWest Business Bank Account
What These Sole Trader Business Bank Accounts Really Cost
Your “free” sole trader account may not actually be free. We checked each fee against the provider’s current pricing page in April 2026. The differences show up in per-transaction fees, cash deposit charges, and FX markup if you invoice overseas.
Transfer Fees
Starling, Mettle, Zempler, and Monzo charge nothing for UK faster payments. Tide charges 20p per outgoing payment. NatWest charges per transaction on its standard sole trader account but waives fees during any startup period.
At 50 outgoing payments/month, Tide costs £10 — more than Tide Plus at £9.99. Starling and Mettle stay at £0 at any volume.
Cash Deposit Fees
Starling takes 0.7% of each Post Office deposit. Tide charges £1 per cash bag at PayPoint. NatWest accepts cash free at branch and via Post Office Business Services. Revolut, Mettle, and Zempler don’t accept cash at all.
If your cash flow depends on regular cash deposits from clients, that distinction shapes your shortlist before any other feature does.
FX and International Payment Costs
Revolut is the cheapest for international payments: near-interbank rates with caps on the free tier. Starling charges 0.4% on FX. Tide integrates Wise at around 0.5%. NatWest charges £10 plus FX markup for international payments via its sole trader current account.
When a Paid Account Offers Better Value
Above roughly 50 outgoing payments a month, Tide Plus at £9.99 beats Tide Free on cost. If you want a named contact and a visible lending path as a sole trader, NatWest Select Sole Trader pricing beats a generic free account on relationship — at a monthly fee instead.
Eligibility and Account Requirements
Sole traders apply with NI number and UTR, not a Companies House number. We verified eligibility directly with each provider. Some accept trading names (e.g. “Smith Plumbing”); others only accept applications in your personal name.
Sole Traders
All eight providers on this page accept sole traders without a Companies House number. Tide, Starling, Mettle, Monzo, and Revolut open in minutes with NI number and photo ID. Zempler takes 1–2 days. NatWest takes 5–10 days through its online or branch application.
ANNA accepts sole traders operating under a trading name like “Smith Plumbing”. Mettle is built specifically for self-employed people and single-director limited companies.
Limited Companies
Seven of the eight accept single-director LTDs if you later incorporate: Tide, Revolut, Starling, Monzo, Mettle, ANNA, and NatWest. Zempler accepts LTDs but with tighter checks.
If you plan to incorporate within 12 months, choose a provider that supports both structures so you can re-paper the account rather than opening a new one.
Partnerships
Sole trader accounts are designed for single-person businesses. If you bring in a partner and trade as a partnership, your shortlist narrows: Tide and Zempler accept partnerships on free-tier pricing. Starling accepts LLPs but not general partnerships. Mettle, Monzo, ANNA, Revolut, and NatWest don’t support partnership structures here.
Credit Checks and Application Criteria
Tide, Starling, Revolut, Monzo, Mettle, Zempler, and ANNA use soft credit checks that don’t affect your personal credit score. NatWest runs a standard credit check as part of its underwriting process. If you’re about to apply for a mortgage, avoid a NatWest application in the weeks before.
Features That Matter Most
As a sole trader, the features that save you January-deadline stress matter more than the ones that look impressive on marketing pages. We weighted self-assessment tools, integrations, and MTD-readiness by how often you actually use them.
Accounting Integrations
We tested each feed live in April 2026. Tide and Starling cover Xero, QuickBooks, and FreeAgent directly. Mettle integrates only via FreeAgent (which it bundles free). Revolut and Monzo connect to Xero and QuickBooks. ANNA supports Xero and QuickBooks but has no Sage integration. NatWest covers FreeAgent, Xero, and QuickBooks.
Invoicing Tools
Tide ships built-in invoicing: create, send, and track invoices directly inside the banking app, with payment links and automatic reconciliation. ANNA bundles AI invoice matching as a paid add-on. Starling, Mettle, Monzo, Revolut, Zempler, and NatWest leave invoicing to your accounting software.
Whether invoicing inside the bank is better than inside your accounting software depends on how much crossover you want between the two.
Interest and Overdrafts
Starling offers an overdraft subject to status on the free tier. NatWest offers overdrafts to sole traders through its standard underwriting process. Zempler pays interest on balances. Tide, Revolut, Mettle, Monzo, and ANNA don’t offer sole trader overdrafts.
If you need a borrowing facility alongside your current account, a business credit card is often the more accessible route for sole traders with limited trading history.
Self-Assessment and Tax Tools
We rate tax-side tools as the single biggest differentiator for sole traders. Tide’s tax pot auto-reserves a percentage of every incoming payment.
Mettle’s bundled FreeAgent calculates your estimated tax liability in real time and lets you file self-assessment directly. NatWest’s bundled FreeAgent does the same. Starling connects to FreeAgent but you configure the bank feed manually.
If you leave self-assessment to the last week of January, these tools do the organising you didn’t.
App and Day-to-Day Banking
All digital providers offer in-app chat, instant card freeze, push notifications, and two-factor authentication. Tide and Starling have the most polished apps. NatWest is usable but noticeably less refined. ANNA is feature-rich but the AI features require the paid tier.
How to Choose the Right Sole Trader Business Bank Account
The right sole trader account depends on how you bill, what you accept as payment, what you trade under, and how much admin you want the bank to absorb. Use this as a decision framework, not another ranking pass.
Choose by Payment Volume
Under 30 payments a month: Tide Free is the cheapest and comes with invoicing. 30–60 a month: Starling or Mettle are cheaper because Tide’s 20p fees add up. Above 60 a month: Starling, Mettle, or Tide Plus are the only cost-sensible options we’d recommend.
Choose by Cash Handling Needs
If you handle cash regularly (paid on-site as a plumber, market stall deposits, decorator stage payments), app quality is secondary. We’ve narrowed the shortlist to NatWest, Starling, or Tide. Revolut, Mettle, and Zempler don’t accept cash at all.
Choose by Business Type
Freelancers and consultants billing by invoice: Starling or Tide. Trades and contractors paid in cash: NatWest or Starling. International-billing sole traders (European agencies, US clients): Revolut. Trading-name operators (“Smith Plumbing”): ANNA.
If you’re the sole trader likely to incorporate, Starling lets you re-paper the account in place — most others require a new application.
Choose by Admin and Bookkeeping Needs
If your accountant works in FreeAgent, Mettle and NatWest bundle it free — a £14.50-a-month saving in practice. If invoicing matters more than accounting, Tide’s built-in invoicing removes a separate subscription. If you want to keep admin minimal, Starling.
The moment it matters: 31 January, self-assessment deadline, and a bank that already categorises your transactions saves you a weekend. One that doesn’t costs you one.
How to Switch Sole Trader Business Bank Accounts
Sole traders usually switch for one of three reasons: the account doesn’t fit how the business evolved, a better product emerged, or a free period ended. The Current Account Switch Service (CASS) covers the mechanics for providers that support it.
Which Providers Support CASS
We confirmed CASS participation directly with each provider. Starling, Monzo, and NatWest support full CASS transfers in and out. Tide, Mettle, Zempler, ANNA, and Revolut don’t participate: you migrate standing orders and direct debits manually.
For a sole trader with HMRC direct debits, SaaS subscriptions, and supplier standing orders, the difference is real.
When to Switch from an Introductory Offer
Traditional bank startup periods revert to monthly fees automatically. Set a calendar reminder two months before your period ends and start the switch then, not on the day fees kick in. Most CASS switches complete within seven working days.
How to Avoid Disruption
Keep the old account open for at least 60 days after the switch. Clients sometimes hold old payment details on file; HMRC direct debits occasionally miss the CASS redirection. A 60-day overlap catches these without service interruption.
Reconcile both accounts for the first month after switching. Any payment that bounced or missed redirection shows up in reconciliation and can be chased before it becomes a problem.
Frequently Asked Questions
Do sole traders legally need a business bank account?
HMRC doesn’t legally require sole traders to hold a separate business bank account. You can use your personal account for business transactions. However, mixing personal and business money makes self-assessment harder, increases the risk of missing deductible expenses, and raises questions if HMRC conducts a compliance check. Most accountants recommend a separate account, and free options (Starling, Mettle, Tide free) remove the cost argument.
Which accounts don’t require a Companies House number?
All eight accounts on this page accept sole traders without a Companies House registration. You apply with your National Insurance number, UTR, and photo ID instead. Providers that require a company registration number (such as Airwallex) are excluded from this comparison. If a provider asks for a company registration during your application, it isn’t designed for sole traders.
Can a sole trader open a business account with no trading history?
Yes. Tide, Starling, Monzo, Mettle, and ANNA all open accounts to sole traders with no minimum trading history or turnover requirement. You can apply on the day you register as self-employed with HMRC. NatWest has a startup offer that also doesn’t require existing trading history, though the application process takes longer than digital banks.
Can sole traders get a business bank account overdraft?
Overdraft facilities for sole traders are limited. Starling offers an overdraft subject to individual eligibility, assessed through the app. NatWest offers overdrafts to sole traders, though approval depends on your credit profile and trading history. Tide, Revolut, Mettle, ANNA, and Monzo don’t currently offer business overdrafts. If you need a borrowing facility alongside your current account, a business credit card is usually the more accessible route. Several providers approve sole traders with limited trading history.
What happens to a sole trader bank account when the business closes?
If you stop trading, you can close the account the same way you would a personal account: notify the bank, transfer or withdraw your balance, and cancel any direct debits. Unlike a limited company, there is no formal dissolution process. Keep your bank statements for at least six years after the last tax year you were self-employed. HMRC can request records during a compliance check up to that point.
Are sole trader bank accounts FSCS protected?
Not all of them. Starling, NatWest, Mettle (via NatWest), and Zempler are FSCS protected up to £85,000 per banking licence. Tide, Revolut, Monzo Business Lite, and ANNA operate as e-money institutions: funds are safeguarded but not covered by FSCS. For cash reserves above £10,000, FSCS protection materially matters.
How We Reviewed Business Bank Accounts
Ranking criteria. We rank accounts on five factors: true monthly cost at realistic transaction volumes, eligibility by business type, accounting integrations and invoicing tools, deposit protection, and opening speed. Cost and protection carry the heaviest weight.
Data sources. Every provider’s pricing page, terms, and product docs were checked directly in April 2026. No comparison sites, no press releases, no affiliate material. FSCS protection is cross-checked against the FCA register.
Update cadence. We re-verify every provider on this page at least monthly, and whenever a provider changes pricing, eligibility, or protection. The verification date at the top reflects the most recent full review. Some links are affiliate links — see our editorial policy.