As a sole trader, having a separate bank account for your business is not legally required, but it is very useful.
A dedicated business bank account can help you stay organised and make it easier to track expenses and income for tax purposes.
It also helps to separate your personal and business finances, providing a clear picture of the financial health of your business.
This article will explore the top sole trader bank accounts available in the market and explore their features and benefits.
- Brands Breakdown
- What is a Sole Trader Business Bank Account?
- Why Do I Need an Account?
- How to Choose
- Features to Look For
- Eligibility Criteria
- How to Open
- Pros and Cons
- Our Top Choices
- FAQs
Best Sole Trader Account Brands Breakdown
Best Overall Sole Trader Bank Account
Tide Free Business Account
Monthly Fee: £0
Bank Transfers: 20p
Card Purchases: £0
Overdraft: No
FSCS Protection: Yes
Accessibility: Access your Tide account via the web or the mobile app.
Tide is a business financial platform, not a bank. It offers e-money accounts via PrePay Solutions and FSCS-protected accounts via ClearBank. Designed for sole traders and small business owners, it provides a fast, digital-first way to manage finances with built-in invoicing, accounting, and expense tracking.
» MORE Read our full Tide business review
Pros & Cons
- Fast and easy account setup
- Expense tracking, invoicing, and receipt scanning
- Free Mastercard business debit card
- No cheque deposit facility
- Limited functionality outside the UK
Account Features
£1 ATM withdrawal fee
No overdrafts or credit facilities
3% cash deposit fee (Post Office & PayPoint)
20p per international transfer
FCA regulated (FRN 900843) & FSCS-protected (ClearBank accounts only)
Integrates with Xero, FreeAgent, QuickBooks, etc.
24/7 customer support (phone support for paid accounts only)
Eligibility Criteria
You must be at least 18 years old.
You must have a valid UK phone number.
You must have a device that can access the UK Apple App Store or Google Play Store.
You must be either the director of an active company registered with UK Companies House or a sole trader/freelancer registered with HMRC.
Charities/trusts and other high-risk industries are not eligible.
Businesses operating from outside the UK are excluded.
Best Sole Trader Bank Account for Those Operating in the EEA
Revolut Business Basic Account
Monthly Fee: £10
Bank Transfers: 20p (10 free per month)
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your Revolut Business account via the web or mobile app
Revolut is a fintech company offering a range of financial services, including business accounts tailored for sole traders. It provides multi-currency support, built-in accounting tools, low-cost international transfers and a monthly £1,000 currency exchange allowance, making it appealing to businesses with international clients.
» MORE Read our full Revolut Business review
Pros & Cons
- Fast account opening, most applications approved within 24 hours
- Mobile app with automation tools for tracking spending
- Invoicing and receipt-scanning features for bookkeeping
- Physical and virtual debit cards for business spending
- Hold and exchange over 30 currencies at interbank rates
- Some features, like bulk payments and API access, require a paid plan
- Less established than traditional banks, which may impact stability
- No cheque deposit facility
Account Features
ATM withdrawal fee: 2% per withdrawal
No overdraft or credit facilities
No cash deposits
International transfers: First transfer free per month, then £5 per transfer
Currency conversion: £1,000 per month free, then 0.6%, 1% outside market hours
FCA regulated (900562). No FSCS protection
API integration available for paid accounts
4.1 Trustpilot score & 4.8 Google Play score
24/7 customer support via in-app chat
Eligibility Criteria
You must be at least 18 years old.
Your business must have a physical presence in the UK, EEA or Switzerland.
You must be a private limited company, public limited company, Limited Liability partnership or partnership.
Charities/trusts and other high-risk organisations are not eligible.
Businesses operating from outside the supported countries are excluded.
Best Sole Trader Bank Account for Freelancers
ANNA Money Pay As You Go Account
Monthly Fee: £0
Bank Transfers: 20p
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your ANNA Money account via the web or mobile app
ANNA Money is an e-money provider designed for sole traders, freelancers, and small businesses. It focuses on affordability and ease of use, offering tools to simplify financial management.
With real-time notifications, VAT tools, and free bookkeeping features, it’s a solid choice for startups needing fast customer service and automation.
» MORE Read our full Anna Money Review
Pros & Cons
- Comes with a contactless Mastercard business debit card
- Open an account in under 10 minutes
- Instant notifications for transactions
- Easily set up direct debits and standing orders
- Built-in tax and bookkeeping tools, including MTD-compatible VAT software
- No branches or in-person support
- 1% fee on foreign currency transactions
- No cheque deposits
Account Features
ATM withdrawal fee: £1 per transaction
No overdraft or credit available
Cash deposits accepted (1% fee, daily limit: £1,000, monthly limit: £10,000)
Digital account access only (no physical branches)
1% fee on foreign transactions
FCA regulated (FRN 900594)
API integration available
4.6 Trustpilot score and 4.1 Google Play score
24/7 customer support via in-app chat and email
Eligibility Criteria
You must be at least 18 years old.
You must be a sole trader, a director of a limited company (and listed on Companies House) or a partner in a Limited Liability Partnership (LLP).
You must have a UK residential address.
Charities/trusts and other high-risk businesses are not eligible.
Businesses not based in the UK are excluded.
Best Sole Trader Bank Account for Those Getting Paid Internationally
Wise Business Account
Monthly Fee: £0
Bank Transfers: Variable
Card Purchases: Variable
Overdraft: No
FSCS Protection: No
Accessibility: Access your Wise account via the web or mobile app
Wise is an Electronic Money Institution (EMI) specialising in international transactions. This account is ideal for businesses needing multi-currency support, allowing users to hold, send, and receive over 40 currencies with low exchange rates.
» MORE Read our full Wise business review
Pros & Cons
- Multi-currency account supporting 40+ currencies
- Low-cost international payments with transparent exchange rates
- Built-in invoicing and payment tools
- Advanced security, including two-factor authentication and encryption
- Fully digital (no physical branches)
- Lacks traditional banking services (e.g., credit facilities, overdrafts)
Account Features
ATM Withdrawals: £200/month free, then 1.75% + 50p per withdrawal
No overdraft or credit facilities
No cash deposits available
Foreign transfers supported, fees vary by currency and payment method
FCA regulated (FRN 900507), no FSCS protection
Integrates with Xero, QuickBooks, FreeAgent
4.3 Trustpilot score and 4.8 Google Play score
24/7 customer support via in-app chat and email
Eligibility Criteria
You must be 18 years of age or older.
Almost all businesses are eligible, but you must provide proof of address for the account representative.
Your business must operate within the supported countries.
High-risk companies and charities/trusts operating outside certain countries are not eligible.
Card One Money Business Account
Monthly Fee: £12.50 (charged based on transaction fees, with a maximum of £12.50 if no transaction fees are incurred)
Bank Transfers: £0
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your Card one money account via the web or mobile app
Card One Money is an e-money institution providing business accounts for sole traders, LLPs, and small businesses that may struggle to access traditional banking. It allows fast account setup with no credit check, making it a practical choice for businesses needing quick access to financial services.
» MORE Read our full Card One Money Review
Pros & Cons
- No credit check required; accessible for businesses with poor or no credit history
- No charge to open an account (except £55 application fee)
- Contactless Mastercard business debit card included
- Fast and easy application – accounts typically open within three hours
- Supports instant domestic and international payments
- £55 application fee (only refunded if the application is unsuccessful)
- Same-day Faster Payments cost £7.50
- Standing orders cost 30p per transaction
- 15p charge for checking balance via SMS
- Limited customer support hours (Monday to Friday, 8:30am – 5pm)
- Primarily for financial management; may not suit businesses needing traditional banking features
Account Features
ATM withdrawal fee: £1.50 (UK ATMs), £3.00 + 2.75% (International ATMs)
No overdraft or credit availability
Cash deposits accepted with a 0.75% fee (maximum £500 per week at Barclays branches)
Cheque deposits accepted at Barclays via bank giro forms (0.75% fee per deposit, minimum charge of £0.50 per cheque)
Foreign transfer fee: £10 for inbound payments, £30 for outbound payments, plus a 2.75% currency conversion fee
FCA regulated (FRN 900493), no FSCS protection
Integrated Software for corporate account
4.5 trustpilot score and 3.8 Google Play score
Customer support limited to Monday-Friday business hours
Eligibility Criteria
- You must be at least 18 years of age.
You must reside within the UK.
Your business must be registered within the UK.
Businesses operating outside the UK are excluded.
Companies that are listed as directors are not eligible.
Zempler Bank Business Go Account
Monthly Fee: £0
Bank Transfers: 30p (3 free per month)
Card Purchases: £0
Overdraft: Yes
FSCS Protection: No
Accessibility: Access your Zempler Bank account via the web or mobile app
Zempler Bank, formerly Cashplus, is a fully licensed UK bank catering to sole traders and freelancers. The Business Go account offers low-cost banking with features like integrated accounting tools and credit-building services. It includes UK-based customer support, FCA protection, and 24-hour fraud monitoring.
» MORE Read our full Zempler business review
Pros & Cons
- No credit check, making it ideal for those with limited credit history
- Fast application process, with most accounts approved within 24 hours
- Comes with a contactless Mastercard debit card
- Credit-building feature helps improve business credit over time
- Flexible pricing options to suit different business needs
- Some customers may prefer a more established bank
- £15 fee for incoming international transfers
- Additional fees for specific features like bulk payments
Account Features
ATM withdrawals: £2 fee for UK ATMs, £3 fee for international, daily limit £500
Overdraft and credit available up to £2,000 (subject to eligibility)
Cash deposit fee: 0.5% (min £3), max £5,000 per day via Post Office
No outgoing foreign transfers; incoming transfers cost £15 (£22 for non-Euro currencies)
FCA regulated & FSCS protected
Software integration with Xero, QuickBooks, and Sage
3.5 Trustpilot score, 4.7 Apple App Store score, and 4.5 Google Play score
Customer support: Mon-Fri 8am-8pm, Sat 8am-4pm, UK bank holidays 9am-5pm
Eligibility Criteria
You must be at least 18 years old and have a UK residential address.
You must be a sole trader, director of a limited company, a charity or a partnership based in the UK.
Sole traders cannot be registered at UK Companies House. Limited Companies must have no more than 4 PSCs registered with Companies House.
High-risk organisations are not eligible.
Businesses operating from outside the UK are excluded.
HSBC Kinetic Current Account
Monthly Fee: £6.50 (Free for first 12 months)
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your HSBC Kinetic account via their mobile app, phone, or in-branch
Special Offer: Get a £100 Amazon.co.uk gift card when you open an HSBC Kinetic Current Account and make 10 qualifying transactions.
HSBC, one of Europe’s largest banks, offers strong financial credibility and FSCS protection. The HSBC Kinetic Current Account is tailored for sole traders and single-director limited companies, providing a digital-first experience with branch access when needed.
» MORE Read our full HSBC Business Review
Pros & Cons
- Debit card included
- Loan options available
- Multiple customer support channels (app, phone, and branch)
- Access to savings accounts with competitive interest rates
- £100 minimum opening balance
- Monthly fee applies after the first year (£6.50 per month)
- Limited to sole traders and single-director limited companies
- Some features require the mobile app
- Application process can be slow, with verification delays reported
Account Features
0.6% ATM withdrawal fee (HSBC ATMs free; third-party ATMs may charge extra)
Overdraft available (£1,000–£100,000, subject to eligibility, 15.67% EAR)
Foreign transfers (£17 fee for international payments in-app)
Foreign transfers available (£17 fee for international payments in-app)
FCA regulated (FRN 765112) & FSCS protected
Software integration available (limited to HSBC-approved accounting tools)
1.6 Trustpilot score and 3.6 Google Play score
24/7 Chat Assistant for support (phone support available Mon–Fri 8am – 8pm, Sat 8am-2pm)
Eligibility Criteria
- You must be at least 18 years of age and reside within the UK.
You must be a sole trader or the sole director of a limited company operating within the UK.
You must have an annual income of no more than £6.5m.
Businesses operating from outside of the UK, within the Isle of Mann or the Channel Islands, are not eligible.
Lloyds Bank Instant Access Business Account
Monthly Fee: £8.50 (Free for 12 months)
Bank Transfers: 20p (100 free per month)
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Lloyds Bank account via the web, mobile app, phone, or in-branch
Lloyds is a well-established UK bank, offering a range of business banking services designed for sole traders, limited companies, and partnerships.
The Instant Access Business Account provides a mix of traditional banking benefits like branch access, FSCS protection, and credit facilities, combined with modern digital tools for convenience.
Pros & Cons
- Debit card included
- Range of in-app financial management tools
- Multiple customer support channels (web, app, phone, and branch)
- Loan options available
- As low as £1 minimum deposit available
- Available only to UK-based businesses
- Fewer advanced features compared to fintech alternatives
- Longer verification times during account opening
- Cash deposit fees apply
Account Features
ATM withdrawals free in the UK, 1.5% fee (minimum £1.50) for international withdrawals
Overdraft and credit available
Cash deposit fee of £1.50 per £100 at a branch, £0.85 per £100 via Immediate Deposit Machine
Foreign transfers cost £15 per transaction
FCA regulated (FRN 763256) & FSCS protected
Software integration available with selected accounting tools
1.7 Trustpilot score & 3.8 Google Play score
Customer support available Monday–Friday 8am–8pm, Saturday 8am–4pm, UK Bank Holidays 9am–5pm
Eligibility Criteria
- You must be at least 18 years of age and reside within the UK.
You must be a sole trader, director of a limited company or in a partnership.
You must have an annual turnover of no more than £6.5m.
Businesses operating from outside the UK are excluded.
Monzo Business Lite Account
Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Monzo account via the web or mobile app
Monzo is a mobile banking app that offers various banking services, including current accounts, business accounts, and credit cards.
» MORE Read our full Monzo business review
Pros & Cons
- Quick and easy account opening process
- The app provides an easy way to track business expenses and income
- Ability to use the account for business purposes
- Physical debit card
- Limited ATM withdrawals
- The app is not yet fully functional in some countries
- Some features may not be available to all customers
- No cheques facility
Account Feature
Free ATM withdrawals
No overdraft or credit availability
Cash Deposit fee £1
Free international transfers available
FCA regulated (FRN 730427) & FSCS protected
Software integration available
4.0 Trustpilot score and 4.7 Google Play score
24/7 Customer Support
Eligibility Criteria
You must be at least 16 years of age.
You must be a sole trader or the director of a limited company registered with Companies House, you must be based in the UK.
You must be a tax resident in the UK only.
LLPs, PLCs, charities and high-risk organisations are not eligible.
Businesses operating from outside the UK are excluded.
Starling Bank Business Current Account
Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Starling Bank account via the web or mobile app
Starling Bank offers a business account specifically for sole traders, with no monthly fees and full FSCS protection. It provides a digital-first banking experience with various tools to simplify financial management.
» MORE Read our full Starling Bank review
Pros & Cons
- Quick account opening, typically under 24 hours
- Dedicated sole trader account available
- App helps track expenses and income
- Business Toolkit available for bookkeeping and VAT management (£7/month)
- Invoicing and receipt-scanning features
- Physical and virtual debit cards
- Limited ATM withdrawals (£300 daily limit, up to six withdrawals per day)
- Some app features not fully functional in all countries
- Bulk payments and some features unavailable to sole traders
Account Features
Free ATM withdrawals (£300 daily limit, up to six per day)
Overdrafts from £1,000 to £50,000 (15% EAR for sole traders)
Cash deposits: 0.7% fee, £3 min, £5,000 daily limit, £20,000 annual limit
International transfers (0.4% currency conversion fee, SWIFT fees may apply)
FCA regulated (FRN 730166) & FSCS protected
Software integrations (Xero, QuickBooks, FreeAgent)
4.4 Trustpilot score and 4.8 Google Play score
24/7 Customer Support
Eligibility Criteria
All directors with access to the account must be at least 16 years old and UK residents.
All Persons of Significant Control must be UK residents and natural persons.
You must be either a sole trader or the director of a limited company or LLP registered with Companies House.
The business must not be a holding company, dissolved, or in liquidation.
Businesses operating from outside the UK are excluded.
Charities/trusts and high-risk businesses are not eligible.
What is a Sole Trader Business Bank Account?
A sole trader business bank account is a dedicated account for individuals running their own business.
It separates personal and business finances, simplifying tax reporting and financial management.
This type of account often includes features such as overdraft facilities, cash deposit options, and integration with accounting software.
It provides essential banking tools tailored for sole traders, ensuring efficient and professional handling of business transactions.
Why Do I Need a Sole Trader Bank Account?
Having a sole trader bank account is essential for keeping business finances separate from personal funds.
This separation helps in tracking income and expenses accurately, making tax filing easier.
It enhances financial management and provides access to banking features like overdrafts and credit tailored for business needs.
Additionally, it supports professional credibility and facilitates integration with accounting software.
How to Choose the Best Sole Trader Bank Account for You
Choosing the best sole trader bank account involves several key considerations:
- Monthly Fees and Charges: Compare the cost structures, including monthly fees and transaction charges.
- Account Features: Look for features like overdraft facilities, credit options, and cash deposit methods.
- Digital Tools: Ensure the account offers robust online and mobile banking options.
- Integration: Check if the account integrates with accounting software you use.
- Customer Support: Evaluate the quality and availability of customer support.
Features to Look For
- Monthly Fee: Lower fees reduce your business overheads.
- ATM Withdrawals: Easy access to cash for daily operations.
- Overdraft or Credit Facilities: Financial safety net for managing cash flow.
- Cash Deposits: Secure and convenient deposit options for cash transactions.
- Account Access: Robust online and mobile banking for easy management.
- International Transfers: Cost-effective options for global transactions.
- FCA Regulation & FSCS Protection: Ensures your funds are safeguarded.
- Software Integration: Simplifies bookkeeping by connecting with accounting software.
- Trustpilot Score and Google Play Rating: Indicates customer satisfaction and reliability.
- Customer Support: Reliable assistance to resolve issues swiftly.
Eligibility Criteria for Sole Trader Accounts
In the UK, you are eligible to open a sole trader bank account if you:
- Operate as a Sole Trader: You must be running your business as a sole trader, which means you are self-employed and solely responsible for your business.
- Resident in the UK: You must have a UK residential address.
- Registered with HMRC: You should be registered as a sole trader with HMRC for tax purposes.
- Business Type: Your business activities should comply with the bank’s acceptable use policy.
How to Open a Sole Trader Account
- Research and Compare: Identify banks that offer sole trader accounts and compare their features, fees, and services.
- Gather Required Documents: Typically, you’ll need proof of identity, proof of address, and evidence of your sole trader status (like HMRC registration).
- Apply Online or In-Branch: Most banks offer online applications; some may require an in-branch visit.
- Complete the Application: Fill out the application form with your personal and business details.
- Verification Process: The bank will verify your documents and may conduct a credit check.
- Account Approval: Once approved, you’ll receive your account details and can start using your new account.
Pros and Cons of a Sole Trader Account
- Separation of finances
- Professional image
- Access to business banking features
- Simplified accounting
- Enhanced creditworthiness
- Better financial management
- Personal liability for debts
- Monthly fees and transaction charges
- Limited banking services compared to business accounts
- Potentially lower borrowing limits
- May require personal credit checks
- Limited support for business growth
Our Best Banks Accounts for Sole Traders & Self Employed
- The best overall business sole trader account: Tide
- The best sole trader account for those operating in the EEA: Revolut Business
- The best sole trader account that is crypto-friendly: Revolut Business
- The best sole trader account for those getting paid internationally: Wise Business
- The best overall account for freelancers: ANNA Money
| Bank | Monthly Fees | Star Rating | Get Started |
|---|---|---|---|
| ANNA Money | Free | ★★★★ | Apply Now |
| Card One Money | £12.50 per month | ★★★ | Apply Now |
| Zempler Bank | Free | ★★★ | Apply Now |
| HSBC | 12 months free, then £8 per month | ★★★★ | Apply Now |
| Lloyds | 12 months free, then £7 per month | ★★★ | Apply Now |
| Monzo | Free or £5 per month | ★★★★ | Apply Now |
| Revolut Business | £10 per month | ★★★★★ | Apply Now |
| Starling Bank | Free or £7 per month | ★★★★★ | Apply Now |
| Tide | Free | ★★★★★ | Apply Now |
| Wise Business | Free (opening an account costs 45GBP) | ★★★★★ | Apply Now |
FAQs
What Documents Do I Need to Open a Sole Trader Account?
The documents you’ll generally need to open an account are:
- Proof of Identity: Passport, driving license, or national ID card.
- Proof of Address: Recent utility bill, bank statement, or council tax bill.
- Business Information: Details about your business, such as its name and nature.
- Self-Employed Status: Confirmation of your status as a sole trader, often through HMRC registration or self-assessment documentation.
How Long Does It Take to Open a Sole Trader Account?
The time it takes to open a sole trader account can vary based on the bank and the completeness of your application. Typically, the process involves:
- Online Application: Filling out an online form can take 10-30 minutes.
- Document Verification: Submitting and verifying documents usually takes 1-3 business days.
- Account Approval: Once verified, account approval can take an additional 1-5 business days.
In total, the process can range from a few days to a week.
How Does Having a Sole Trader Bank Account Affect my Taxes?
Having a sole trader bank account simplifies tax reporting by separating business and personal finances, making it easier to track income and expenses.
This clarity helps in accurately identifying allowable business expenses, which can reduce your tax bill.
Mixing business and personal costs in a personal account complicates calculating deductible business expenses.
Therefore, a dedicated business account ensures more accurate tax filings and potential savings.
Can I Upgrade My Sole Trader Account if My Business Grows?
Yes, if your business expands, you can upgrade your sole trader account to a business account with more features.
Many banks offer seamless transitions to accounts that provide higher transaction limits, enhanced credit facilities, and additional services suitable for growing businesses.
However, usually these accounts come with higher monthly maintenance fees, and switching accounts may involve a risk of temporary disruption to your banking operations.
It’s advisable to discuss your needs with your bank to find the best options tailored for your business’s evolving requirements.
