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See accounts and key features, such as interest rates on in-credit balances and overdraft limits, at a glance
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See accounts and key features, such as interest rates on in-credit balances and overdraft limits, at a glance
We’ll show you business accounts from a range of leading providers in the UK
Once you’ve made your decision, you can click through and apply straightaway
A business bank account is similar to a personal bank account, but it is meant for business transactions by sole traders, partnerships, companies, clubs, societies or charities.
Business bank accounts are a legal requirement if you want to set up a limited company. If you’re self-employed, opening a business bank account is an easy way to keep your business dealings separate from your own personal finances.
Having a business bank account also lets you apply for a business credit card, and should make it easier to apply for business loans.
You will have to provide different documents depending on the type of company you’re running. But you’ll always have to provide your business details, as well as personal details for anybody included in the application. You’ll be asked for...
A valid passport or driving licence for all company directors
You’ll have to provide your address to prove you are a UK resident
If different from your home address. More common with limited companies
Including registered business name and number and date of incorporation
Business accounts come with an array of different features. Many will be the same as you’ll find with a personal current account. Features differ from bank to bank, but those you could expect include:
Allowing you to go overdrawn from time to time if cashflow is tight
FSCS rules mean you’ll be covered up to £85,000 in the account should the bank go bust
This could be direct messaging through the app or a dedicated phone number to call
Move your balance and direct debits seamlessly to your new account provider
If you travel abroad for work look out for accounts that can keep travel expenses down
Allows you to scan in cheques digitally so you never have to visit a branch
A business debit card can minimise administration when reconciling cash and personal card expenses
Online business banking means you can manage your finances easily and securely, wherever you are
It’s worth weighing up the benefits and downsides of a business account before making your final decision.
Keeps business income and expenditure separate from personal finances
Can help prevent you from personal legal liability
Can build a credit rating for your business - helpful if you need a business loan
There can be fees for having a business account
It’ll be in addition to your personal account so more admin
It may not pay interest on in-credit balances
If you’re registered as a limited company, you’re mandated by law to have a business bank account. What’s more, while there are usually charges to pay, there are a range of advantages for having one. These include:
It makes it easier to keep records, spot mistakes and gather information when you need to file annual accounts and tax returns
You’ll get a better, clearer view of your financial performance
Having an account with your trading name looks more professional to clients
Just as every business is different, there are different types of accounts which cater to businesses in different ways. Look out for the following features when making your choice:
Many business current accounts charge monthly fees, while some also impose fees for different types of transactions
Can be useful if you have tight cashflow and need the occasional buffer. Check to see how much an overdraft might cost before applying
If you are regularly transferring large sums, you’ll need an account that won’t cap the limit below your needs
Some accounts let you earn interest on the money that sits in your business account balance, which is good if you’re always in the black
Most banking is done digitally, so make sure you’re happy with the website or app. If you regularly pay in cash and cheques consider if the account is right
Some accounts offer access to business and tax advisers or can be linked to accountancy platforms
The current account switch service allows you to transfer all your payments from your existing current account to your new business account within seven working days. This includes any working payments such as salary, rental or pension income, and expenditures such as direct debits and standing orders.
The majority of the UK’s bank account providers are signed up to the switch service which should ensure the move goes smoothly.
"A business bank account helps you manage your incomings and outgoings whether you’re a director of a company or a sole trader. It also means you’ll keep business finances separate from personal finances, which will be a godsend when it comes to anything related to the accounts. There are a range of business accounts to pick from, so make sure you choose one that’s right for you.
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We can take the hard work out of finding a business account to suit you by comparing a range of accounts all in one place.
We’ll search the market to find the best business account for your needs, including any incentives to switch
Use our handy filters to narrow down your options based on the type of business account you need, such as interest paid, overdraft costs or monthly fees
When you find the deal you want, click straight through to the provider to complete your application. Sit back while your new bank takes care of the switch
You are legally obliged to have a business bank account if you have a limited company. That’s because a limited company, or a Limited Liability Partnership, is a separate legal entity from you as an individual, and as such it needs a separate business account.
As a sole trader, or self-employed person, you’re not legally obliged to have a business bank account. Your business and personal income are treated in the same way by the tax office, so you can use your personal bank account for business transactions. Partnerships, which are effectively two or more sole traders, may also choose to operate through a joint personal account.
However, many sole traders and partnerships prefer to keep their business finances separate by opening a business bank account. Advantages can include being able to deposit money under your trading name and having access to more detailed transactional data.
A personal bank account allows you to receive and pay out money in your name. Many personal bank accounts therefore offer features to help you manage your personal finances.
A business bank account allows you to receive and pay out money in your company’s name. The account features will be designed with business use in mind – such as payroll and invoicing – and will often have fees attached. Many business current accounts also have monthly fees.
You can generally open a business bank account online or in your local branch. How you open your account will depend on the type of bank you choose. Some high street banks may prefer you to open an account in person; digital banks operate solely online, so the application process is online too.
If you have a bad credit history then you’ll probably find it more difficult to open a business bank account, especially if you’ve been bankrupt in the past five years or have a County Court Judgement (CCJ). If this is the case, you might find it easier to open a business account with your current account provider.
Taking steps such as paying back any credit you owe on time and making sure you’re registered on the electoral roll can help to improve your credit score, which can increase your chances of being approved for a business account in the future.
