7 Best sole trader business bank accounts

If you’re running a business as a sole trader, choosing the right business bank account is one of the simplest ways to make your life easier, yet it’s often something people put off. Many sole traders start out using their personal bank account, especially in the early days, but this can quickly become messy once invoices, expenses, subscriptions and tax payments start piling up.

While sole traders in the UK are not legally required to have a separate business bank account, there are good practical reasons to open one. A separate account makes it much easier to track income and expenses, stay on top of your tax obligations, and provide clear records if HMRC ever asks questions. It also saves time when completing your Self Assessment tax return and makes working with an accountant far more straightforward.

The good news is that business banking has improved dramatically in recent years. Alongside traditional high-street banks, there are now app-based providers designed specifically for sole traders, freelancers and small businesses. Many offer free accounts, fast sign-up, and tools such as invoicing, spending categorisation and accounting software integrations.

In this guide, we compare seven of the best business bank accounts for sole traders in the UK. We look at costs, features, ease of use, and which types of businesses each account is best suited to, whether you’re a freelancer, tradesperson, online seller or consultant.

Tide Business Account

Tide has certainly shaken up the UK banking scene with its digital-first approach for small businesses. With over 1.5 million freelancers, contractors, and scaling businesses worldwide, they’ve managed to capture approximately 10% of all SMEs in the UK market.

Tide Business Account key features

The Tide Business Account comes packed with tools designed to make business banking simpler for sole traders:

• Quick setup: Open an account in minutes and receive your card within days
• FSCS protection: Deposits protected up to £120,000 through ClearBank
• Auto-categorisation: Transactions are automatically tagged, making accounting easier
• Invoicing capability: Create, track, and send professional invoices directly from the app
• Payment options: Generate payment links, use Tap to Pay on iPhone, and access international payments
• Virtual cards: Pay for online subscriptions and advertising expenses securely
• Integration with accounting software: Connect with popular platforms like Xero, Quickbooks, and FreeAgent
• Interest-earning potential: Access to Tide Instant Saver Account with competitive rates
• Digital wallet compatibility: Set up Apple Pay or Google Pay for effortless payments

What’s particularly helpful is that Tide lets sole traders export transactions in multiple formats and share them directly with accountants — making tax season far less of a headache.

Tide Business Account pros and cons

Pros:

• No monthly fees on the free plan
• Fast digital account opening process
• Comprehensive mobile app with strong user ratings (4.8/5 on Apple App Store based on over 76,200 reviews)
• Integrated tools for invoicing, accounting, and expense management
• 24/7 in-app support available year-round
• Option to earn interest on business savings
• No credit checks when opening an account

Cons:

• Transaction fees apply (20p per transaction after 5 free monthly transfers on the Free plan)
• Cash deposit fees (0.99% at Post Office with £2.50 minimum, 3% at PayPoint)
• ATM withdrawal fee of £1 per transaction
• No overdraft facility available
• Foreign currency card transactions incur 2.75% fee on free plan
• Digital-only with no branch access

Tide Business Account pricing

Tide offers four pricing tiers — each catering to businesses at different stages:

1. Free Plan: £0 monthly fee, 5 free transfers per month then 20p each, 2.75% foreign exchange fees
2. Smart Plan: £12.49 monthly, 30 free transfers per month, 0% foreign exchange fees, one free expense card, priority support
3. Pro Plan: £24.99 monthly, unlimited free transfers, 0% foreign exchange fees, two free expense cards, included Tide Accounting
4. Max Plan: £69.99 monthly, unlimited free transfers, 0% foreign exchange fees, three free expense cards, 0.5% cashback on card purchases, enhanced savings rates

UK card transactions are free across all plans, but ATM withdrawals will cost you £1 each.

Tide Business Account best for

Tide works brilliantly for digitally-savvy entrepreneurs who mainly operate online and rarely need to deposit cash or withdraw from ATMs. The account is particularly valuable for:

• New sole traders: The free account with no monthly fees makes it perfect for those just starting out
• Online businesses: Digital features like payment links and virtual cards work perfectly for e-commerce sellers
• Freelancers managing invoices: The built-in invoicing system helps get paid faster
• Business owners seeking simplicity: The user-friendly app and auto-categorisation features take the hassle out of financial admin

For sole traders who need more advanced features as they grow, the paid plans offer expanded capabilities without forcing you to switch to a different provider. However, businesses that handle significant cash transactions might find the deposit fees a bit limiting compared to what traditional banks offer.

Monzo Business Lite

If you’re after a straightforward, no-cost business account, Monzo’s Business Lite plan might just fit the bill. This digital-only bank has built a streamlined business banking experience that works well for smaller enterprises and individual entrepreneurs.

Monzo Business Lite key features

Monzo Business Lite covers the essential banking functionality without monthly fees:

• Full UK business current account with a debit Mastercard for everyday transactions
• FSCS protection up to £120,000 on eligible deposits
• Mobile and web access for managing your account remotely
• 24/7 human customer support available year-round
• Instant notifications for real-time transaction tracking
• Free, instant UK bank transfers with no hidden charges
• Acceptance of contactless payments through Tap to Pay functionality
• Payment links for collecting funds from customers easily
• Fee-free spending abroad when using your Monzo card
• Apple Pay and Google Pay integration for convenient mobile payments
• Instant access savings pots to separate and organise your business funds
• Fast mobile sign-up process with no branch visits required

The catch? Well, being free means the Lite account doesn’t include some of the more advanced features you’ll find in Monzo’s paid plans — things like invoicing tools, accounting integrations, and tax management capabilities.

Monzo Business Lite pros and cons

Pros:

• Zero monthly fees, making it budget-friendly for new businesses
• Simple, fast sign-up process entirely through the mobile app
• Free UK bank transfers and card payments in GBP
• 24/7 customer support accessibility
• Built-in budgeting tools and Money Pots for financial management
• Savings pots feature with competitive interest rates (1.5% AER)
• Intuitive mobile app with real-time notifications

Cons:

• Limited to sole traders and limited companies only—not available for partnerships, LLPs, charities, trusts, or companies with complex ownership
• No credit card option available
• Cash deposit limits can be restrictive with £1 fee per deposit
• International payments require Wise integration with a 1% fee for receiving international funds
• Loan and overdraft facilities limited to eligible sole traders only
• Customer service can occasionally be slow to respond
• No branch banking options available

Monzo Business Lite pricing

The Lite plan keeps things simple with a straightforward fee structure:

• Monthly account fee: £0
• UK bank transfers: Free
• Card payments in GBP: Free
• EEA cash withdrawals: Free
• Cash deposits: £1 per transaction via PayPoint
• Cheque processing: Free (when sent by Freepost)
• International currency conversion: 1% fee on received payments
• Minimum contract period: None

Monzo Business Lite best for

Monzo Business Lite works particularly well for:

• Early-stage sole traders looking to keep banking costs minimal while getting their business established
• Digital-first entrepreneurs who are comfortable with app-based banking and rarely handle cash
• Small online businesses that primarily receive and make payments electronically
• Freelancers and contractors who want clear visibility of their finances through instant notifications
• Sole traders with straightforward banking needs who don’t require advanced accounting features or team access

The account suits businesses that operate primarily in GBP, since all other currencies are automatically converted. Unfortunately, if your business involves significant international operations or you frequently handle physical cash, Monzo Business Lite might not be the best fit.

All in all, Monzo’s free business account provides a solid starting point for sole traders who value digital convenience and cost efficiency over extensive banking features.

Virgin Money M Account

Virgin Money has carved out quite a niche in the sole trader banking market with its M Account for Business — a fee-free digital banking experience created specifically for businesses with annual turnover under £1 million. This challenger bank brings together modern digital tools with some rather appealing cashback incentives for small business owners.

Virgin Money M Account key features

The M Account for Business comes packed with tools to support sole traders:

• No monthly account fees and free day-to-day digital banking transactions
• Cashback rewards of 0.25% on all debit card purchases with no upper limit
• Fast digital sign-up process for streamlined account opening
• Five-star Moneyfacts rating recognising standout features in the business banking market
• Integration capabilities with accounting software including Sage, Xero, and QuickBooks
• Automated spending categorisation to simplify expense tracking and tax reporting
• In-app cheque scanning for convenient deposit processing
• Instant payment notifications to keep track of transactions in real-time
• Expert mentoring and guidance available from Virgin Startup
• Digital wallet support through Apple Pay and Google Pay compatibility

There’s also a specialised version for construction trades that provides enhanced benefits, including higher cashback rates and trade-specific perks.

Virgin Money M Account pros and cons

Pros:

• Zero monthly fees for maintaining the account
• Unlimited cashback potential with no cap on earnings
• Mastercard discounts available with selected merchants
• Optional £1,000 overdraft facility for eligible customers
• Expert business mentoring through Virgin Startup partnership
• Free UK bank transfers through Faster Payments network
• Paper-free statements and correspondence

Cons:

• Limited to businesses with turnover below £1 million
• Not available to businesses based in Northern Ireland, Channel Islands, or Isle of Man
• Daily cash withdrawal limit of £700 may restrict some operations
• £10,000 limit on international purchases could affect global businesses
• No branch access, operating as a digital-first bank
• Certain business types excluded from eligibility (money services, high-value dealers)
• Optional overdraft relatively small compared to some competitors

Virgin Money M Account pricing

The M Account for Business keeps things refreshingly simple with its pricing:

• Monthly account fee: £0
• UK bank transfers: Free (up to £30,000 per transaction)
• Debit card transactions: Free, plus 0.25% cashback on purchases
• Digital banking services: Included at no extra cost
• Cheque processing: Free in-app deposit capabilities
• Foreign currency transactions: No Virgin Money fees

Construction trade businesses get even better treatment with enhanced benefits including 0.5% cashback on trade and home improvement store spending, 15% off mobile insurance, and 10% off business insurance.

Virgin Money M Account best for

This account works particularly well for:

• New sole traders wanting to keep banking costs down while building their business
• Construction trades who can take advantage of the enhanced cashback and insurance discounts
• Digital-focused small businesses comfortable with app-based banking
• Entrepreneurs who mainly operate online with minimal cash handling needs
• Businesses wanting accounting integrations to make financial management smoother
• Small businesses with turnover under £1 million seeking free banking services

The digital-first approach combined with integration capabilities makes this an excellent choice for sole traders who want to keep banking costs low while still getting modern financial tools and cashback rewards. The lack of monthly fees is particularly appealing for businesses in their early stages, though the turnover restrictions mean growing businesses will eventually need to look elsewhere.

Countingup Business Account

What if you could handle both your banking and accounting in one place? That’s exactly what Countingup offers — and it’s designed specifically for one-person businesses like yours. This solution aims to simplify financial management for UK entrepreneurs who want to spend less time on admin and more time growing their business.

Countingup Business Account key features

The Countingup Business Account brings together banking and accounting in one system:

• Business current account with contactless Mastercard debit card for everyday transactions
• Built-in accounting software that automates bookkeeping and categorises transactions
• Tax estimation tools that calculate liabilities in real-time based on income and expenses
• Invoicing functionality that creates, sends, and matches payments automatically
• Receipt capture allowing you to snap, attach and store receipts digitally
• Profit and loss reporting providing instant visibility of business performance
• Tax pot feature that automatically sets aside money for tax obligations
• Accountant access through a dedicated Accountant Hub for seamless collaboration
• Cash deposits available at over 27,000 PayPoint and Post Office locations nationwide

The app automatically flags late payments, missing receipts, and uncategorised transactions — so nothing gets forgotten when it comes to your financial records.

Countingup Business Account pros and cons

Pros:

• Three-month free trial period for new customers
• Quick four-minute application process
• Flexible pricing that adjusts based on your monthly deposits
• Banking and accounting combined in a single platform
• SmartTax AI that identifies applicable tax allowances
• Direct VAT return filing to HMRC at no extra cost
• Shared access with accountants to streamline collaboration
• Positive user reviews on major platforms

Cons:

• No physical branches or telephone banking available
• Not protected by the Financial Services Compensation Scheme (FSCS)
• Transaction fees apply from day one (30p per transfer)
• No free account option after trial period
• Unable to deposit cheques
• Limited to app-only access with no web interface
• International payments require using third-party partner CurrencyFair
• Cash deposit fees apply (0.5% at Post Office, 3% at PayPoint)

Countingup Business Account pricing

Countingup offers a flexible tiered pricing structure based on your monthly deposits:

• Tier One: £3 monthly for deposits between £0-£750
• Tier Two: £9 monthly for deposits between £750-£7,500
• Tier Three: £18 monthly for deposits over £7,500

Your subscription automatically adjusts each month based on your deposit amounts — so it goes up or down as your business activity changes.

Additional transaction fees apply regardless of tier:

• Account transfers (in/out): 30p per transaction
• Direct debits: 30p each
• ATM withdrawals: £1 per withdrawal
• Foreign transactions: 3% fee
• Cash deposits: 0.5% at Post Office (£2 minimum) or 3% at PayPoint
• Card replacement: £5

All new accounts receive a three-month free trial of subscription fees, although transaction charges still apply during this period.

Countingup Business Account best for

Countingup works particularly well for:

• Solo entrepreneurs managing their own financial administration
• Freelancers and contractors who want to streamline invoicing and payment tracking
• New sole traders looking to establish proper financial systems from the start
• Digital-savvy business owners comfortable with app-based financial management
• Businesses with straightforward banking needs who value integrated accounting tools
• Sole traders seeking to reduce accountancy costs through automated bookkeeping

Unfortunately, the account isn’t suitable for businesses that need international banking capabilities or frequent cash deposits… and if you’re uncomfortable with digital-only banking, this probably isn’t for you. But if efficiency matters to you and you want your banking and accounting in one place, then Countingup could be exactly what you’re looking for.

Starling Business Account

Starling launched back in 2014 as the UK’s first fully licenced digital bank, and they’ve built quite an impressive following — now serving over 500,000 UK business customers with their award-winning mobile-first approach. What makes their business account particularly appealing for sole traders is the modern banking experience without those monthly fees that usually come with business accounts.

Starling Business Account key features

Starling has put together a solid mix of digital convenience and practical financial tools for sole traders:

• Zero monthly fees for standard banking services and UK transfers
• Real-time notifications so you know instantly what’s happening with your account
• Receipt capture functionality to digitise and store your purchase records
• Automated expense categorisation which makes tax returns and accounting much simpler
• Integration with accounting software including Xero, QuickBooks and FreeAgent
• Spaces feature to set aside funds for taxes, business trips, or that new equipment you need
• Bills Manager for organising your direct debits and standing orders
• Mobile cheque deposits through the app — though only for cheques up to £1,000
• Cash deposits available at Post Office locations nationwide
• 24/7 UK-based customer support via app, phone or email
• FSCS protection covering deposits up to £120,000

You’ll get a contactless Mastercard debit card that works with Apple, Google, Samsung and Garmin Pay for flexible payment options.

Starling Business Account pros and cons

What we like:

• No monthly account fees or UK payment charges
• Free ATM withdrawals both in the UK and abroad
• Simple application process — all done through the app
• Multiple directors can access the account at no extra cost
• Current Account Switch Service available for easy switching
• Smart money management tools including spending insights
• Well-regarded by customers (82% would recommend to other SMEs)

What to consider:

• Cash deposits cost 0.7% (minimum £3) at Post Office branches
• Larger cheques (over £1,000) need to be posted rather than deposited via app
• No physical branches if you prefer face-to-face banking
• Some business types aren’t eligible
• Can’t provide access for accountants or non-director team members
• Overdrafts are subject to eligibility checks and annual fees

Starling Business Account pricing

Here’s what you can expect to pay with Starling:

• Monthly account fee: £0
• UK bank transfers: Free (Faster Payments, Direct Debits, Standing Orders)
• ATM withdrawals: Free in the UK and abroad
• Card payments: Free in the UK and abroad
• Cash deposits: 0.7% fee (minimum £3) via Post Office
• Post Office cash withdrawal: £0.50 per transaction
• CHAPS payments: £20 each
• Replacement cards: £5 (UK) or £10 (overseas)

Optional extras you might consider:

• EUR account: £2 per month
• USD account: £5 per month (limited companies only)
• Business Toolkit: £7 per month (includes invoicing, tax calculation, VAT submission)
• Bulk Payments: £7 per month

Starling Business Account best for

We think Starling works particularly well for:

• Tech-comfortable sole traders who are happy with app-based banking
• Small businesses with straightforward banking needs wanting core services without monthly fees
• UK-based entrepreneurs who value FSCS-protected accounts
• Businesses with minimal cash handling — those who rarely need to deposit physical money
• Multiple director businesses where several people need account access
• Sole traders wanting clear separation between personal and business finances with minimal fuss

The focus on digital banking and lack of monthly fees makes Starling a sensible choice if you want sophisticated money management tools without ongoing account costs. The built-in features are particularly useful for entrepreneurs who want clear visibility and good organisation of their finances.

We’ve spent time researching and comparing 7 solid options for sole trader bank accounts available right now. Each has different strengths, costs, and features—so we’ll help you work out which one fits your business best. Most can be opened in just minutes, which means less time on paperwork and more time focused on what you do best.

HSBC Kinetic Business Account

HSBC Kinetic isn’t just another bank account with a mobile app—it’s built from the ground up for your phone. After talking to over 3,000 small business owners, HSBC designed this account to tackle the real problems UK sole traders face every day.

HSBC Kinetic Business Account key features

The whole banking experience lives in your pocket, and here’s what you get:

• Mobile-first design: Apply in minutes through iOS or Android—most accounts open within 48 hours
• Cashflow management: Your spending gets sorted automatically, plus monthly insights to help you plan ahead
• Software integration: Works smoothly with Xero, QuickBooks, and Sage
• Mobile cheque deposits: Snap a photo to deposit cheques through the app
• Daily transaction limits: Send up to £25,000 per day without leaving the app
• International capabilities: Transfer money to over 200 countries and territories (fees apply)

Here’s something that might surprise you—less than a third of UK small businesses feel confident tracking their finances in real-time. HSBC Kinetic tackles this head-on with its clear interface and automatic sorting.

HSBC Kinetic Business Account pros and cons

Pros:

• No monthly fees and free UK digital banking
• Apply for up to £30,000 overdraft in-app—funds available same day if approved
• Customer support built into the app
• FSCS protection up to the compensation limit
• Won Best App-Based Business Bank Account 2022-25 by Moneynet

Cons:

• Mobile app only—no desktop banking
• Only you can access the account (sole trader or director)
• Won’t work if you need funding over £10,000
• Some international payments need to be done outside the app
• Fewer transaction types than traditional business accounts

HSBC Kinetic Business Account best for

This account works well for:

• Sole traders: Self-employed individuals wanting a dedicated business account
• Single-director companies: Limited companies with one director who’s also the sole shareholder
• Digital-focused business owners: Perfect if you’re happy managing everything through your phone
• Smaller businesses: Annual turnover up to £6.5 million
• UK tax residents: Available to UK tax residents only (excluding Channel Islands and Isle of Man)

Great if you’re a new entrepreneur who wants real-time financial insights—especially since 40% of small businesses struggle with at least one aspect of managing their money. The automatic sorting and insights help solve exactly these problems.

The ability to apply for overdrafts, credit cards and small business loans (£1,000 to £10,000) entirely through the app makes this efficient for sole traders who need quick access to extra funds without visiting branches.

TSB Business Plus Account

TSB’s Business Plus Account stands out for one simple reason—it gives you more time to get your business sorted without worrying about banking fees. With 30 months of free day-to-day banking, this account recognises that new businesses need breathing room to find their feet before monthly costs start adding up.

TSB Business Plus Account key features

The Business Plus Account brings together practical tools that sole traders actually need:

• 30-month free banking period for new businesses and those switching to TSB, keeping you within agreed limits
• Business debit card for straightforward payments and cash withdrawals without extra charges
• Mobile banking app with text alerts so you know what’s happening with your money
• Access to over 220 branches across England, Scotland and Wales
• Post Office banking at 11,500 locations for cash and cheque deposits when you need them
• Enterprise Nation membership giving you 12 months of free business advice tailored to your needs
• Square Reader with no fees on your first £5,000 of sales, or 30% off a Square Terminal for payments

The account keeps things simple, which works well if you want banking that doesn’t complicate your life. Two months before your free period ends, TSB will remind you about the upcoming changes.

TSB Business Plus Account pros and cons

Pros:

• Generous free banking period (30 months) for new and switching businesses
• Electronic payments including Direct Debits and standing orders cost nothing
• Cash withdrawals from TSB machines won’t cost you extra
• Transfers between your TSB business accounts are free
• Branch and Post Office access when you prefer face-to-face banking
• Works with accounting software like Xero, QuickBooks, and Sage
• Monthly fee disappears if you keep £10,000+ average balance

Cons:

• £5 monthly fee kicks in after your free period
• Cheques cost 70p each and cash handling is 70p per £100 after free banking ends
• Mobile app features are basic compared to digital-only banks
• International payments outside EEA countries cost more
• Unarranged overdrafts can hit you with £1 daily fees (capped at 10 per month) for amounts over £200
• Branch network is getting smaller, which might affect you if you rely on in-person services

TSB Business Plus Account pricing

Unfortunately, unarranged overdrafts come with a 19.9% annual interest rate on the full amount. Plus, if you go over £200, you’ll face £1 daily charges—though these max out at 10 fees per monthly cycle.

TSB Business Plus Account best for

This account works particularly well for:

• New sole traders who want to get established without immediate banking costs eating into their budget
• Businesses switching accounts looking to benefit from that extended free banking period
• Cash-heavy businesses needing regular access to branches or Post Office locations
• Sole traders with decent balances who can maintain £10,000+ to skip the monthly fee altogether
• UK-focused businesses without heavy international payment requirements
• Entrepreneurs wanting business support through the Enterprise Nation membership

This account appeals to sole traders who like having options—both digital banking and physical locations when needed. While it doesn’t offer the bells and whistles of some app-only alternatives, that extended free banking period gives you real value during your business’s early stages.

Mettle Business Account

Mettle takes a different approach to business banking—it’s a digital-only account from NatWest Group built specifically for self-employed people and small businesses. What makes it stand out? Free banking combined with proper accounting tools, which can save you both time and money.

Mettle Business Account key features

Here’s what you get with Mettle’s mobile app:

• Free FreeAgent accounting software included with your account (saving at least £150 per year) provided you make at least one transaction monthly
• Interest-earning capability on savings pots at 0.95% AER/0.95% Gross p.a. (variable) on balances from £10 up to £1 million
• FSCS protection covering eligible deposits up to £120,000
• Invoice creation and management directly within the app, with status tracking and payment matching
• Automated tax savings through dedicated Tax Pots that set aside percentages of incoming payments
• Real-time payment notifications with automatic invoice reconciliation
• Google and Apple Pay support for convenient mobile payments
• Cash deposits available at Post Office locations
• Receipt uploading for keeping digital records of business expenses

The clever bit? Mettle shows your running tax totals and payment deadlines right in the app—helping you avoid those nasty surprises when tax bills arrive.

Mettle Business Account pros and cons

Pros:

• Zero monthly fees and no transaction charges
• Intuitive mobile app rated 4.6/5 on Trustpilot (based on 5,000+ reviews)
• Automatic invoice reconciliation saves time on bookkeeping
• Integration with accounting software (Xero, QuickBooks) beyond FreeAgent
• Multiple money pots for organising finances (up to 30 Regular Pots)
• In-app customer support from “real people”

Cons:

• No international payments capability
• Cannot deposit cheques into your account
• Limited to balances under £1 million
• No access to credit or government-backed loans
• Only one account owner can access the account, despite allowing limited companies with two owners
• No desktop banking interface (app-only management)

Mettle Business Account pricing

Everything stays free unless you want the optional Mettle+ features for creating quotes and converting them to invoices with tailored messaging templates.

Mettle Business Account best for

This account works well for:

• New sole traders seeking a straightforward, no-fee banking solution
• Limited companies with up to two owners (though only one can access the account)
• Tax-conscious entrepreneurs who benefit from automatic tax calculations and savings features
• Businesses using FreeAgent accounting software who want to save on subscription costs
• UK-based companies with owners who are UK tax residents
• Digital-savvy business owners comfortable managing finances entirely through a smartphone

Mettle works best if you’re mainly doing business within the UK—since international payments aren’t supported. But if you want free banking with proper accounting tools built in, it’s hard to beat for keeping your business finances organised without the costs.

ANNA Business Account

ANNA (Absolutely No Nonsense Admin) brings something different to business banking—an AI-powered account that actually miaows when you make payments. This app-based solution combines your banking with invoicing and expense management, designed to cut through the admin hassle that many UK sole traders face.

ANNA Business Account key features

ANNA’s business account comes with some clever features that can save you time:

• Quick setup process with account details available in as little as 10 minutes and physical cards arriving in 3-4 days
• AI-powered chat interface for managing banking and admin tasks through a messaging thread available 24/7
• Professional invoicing tools that create, send, and automatically chase overdue payments
• Receipt scanning and matching to digitise and categorise expenses on the go
• Tax calculation and filing capabilities for VAT returns and Self Assessment with automated reminders
• Money management pots for setting aside funds for taxes and other expenses
• Open Banking integration allowing you to connect other business and personal accounts to see all finances in one place
• Payment collection options including personalised payment pages, links and QR codes

Here’s something we particularly like—ANNA’s support guarantee means if no one responds to your query within 10 minutes in the chat, your account subscription fee for that month gets refunded.

ANNA Business Account pros and cons

Good points:

• Award-winning 24/7 customer support based in Cardiff with average response time under 50 seconds
• Free Pay As You Go plan with no monthly fees
• Automatic invoice reconciliation saves time on bookkeeping
• Cashback offers of up to 40% on over 150 business products and services
• Integration with accounting software including Xero, FreeAgent, QuickBooks and Sage
• Virtual card available immediately upon account opening

Things to consider:

• Not covered by FSCS protection (uses safeguarding instead)
• Cannot deposit cheques into your account
• No overdraft facilities available
• Currency conversion fees apply for international transactions
• Higher fees for some services compared to traditional banks
• Some features require paid subscription tiers

ANNA Business Account pricing

ANNA offers three distinct pricing plans:

There’s also an optional +Taxes add-on available for £29 + VAT monthly, providing tax calculation, filing, auto-bookkeeping and expert support.

One nice touch—if you don’t use your account for a month, you won’t pay the monthly fee for that month.

ANNA Business Account best for

This account works well for:

• UK sole traders seeking to simplify invoice management and expense tracking
• Digital-savvy entrepreneurs comfortable with app-based banking
• Small business owners who value responsive customer support
• Companies with tax complexities benefiting from automated calculations and reminders
• Businesses requiring multiple expense cards for team members
• Startups looking for financial admin automation without high monthly fees

ANNA really shines if you spend a lot of time on invoicing, receipt management and tax preparation—the app aims to reduce that admin burden. The pay-as-you-go option means it’s accessible whether you’re just starting out or already established as a sole trader.

Revolut Business Account

Since 2015, Revolut Business has grown into something quite substantial—they’re now serving over 500,000 companies, with around 10,000 new businesses signing up each month. What makes this option stand out is its focus on multi-currency banking, which can be a real game-changer if you work with international clients.

Revolut Business Account key features

Here’s what Revolut Business brings to the table:

• Multi-currency accounts supporting over 30 currencies—perfect for holding, exchanging, and transferring money worldwide
• Expense management tools that track spending in detail and monitor team expenses in real-time
• Payment acceptance options from online widgets to in-person payments via Revolut Reader
• Foreign exchange at interbank rates with allowances that vary depending on your plan
• Physical and virtual cards available in different quantities across subscription levels
• Accounting software connections with Xero, QuickBooks, FreeAgent, and others for automatic reconciliation
• Savings accounts offering interest from 2.25% AER up to 3.51% AER based on your plan
• Team permissions so you can control who sees and approves transactions

The higher-tier plans unlock extras like bulk payments and advanced spending controls—useful as your business grows.

Revolut Business Account pros and cons

Pros:

• Flexible account tiers that scale with different business sizes
• Well-designed mobile app for managing finances anywhere
• Competitive exchange rates for international transactions
• Instant card freezing if you lose your card
• Rewards programme with perks from Zipcar, Shopify, and Fiverr Business

Cons:

• Won’t accept cheque deposits
• £3,000 daily ATM withdrawal limit plus 2% fees on all withdrawals
• Monthly fees apply to all business tiers (except freelancer plans)
• Currency exchanges outside normal hours cost an extra 1%
• Money isn’t currently FSCS protected—though this is changing with their new UK banking licence

Revolut Business Account pricing

Revolut uses tiered pricing with increasing features:

Once you exceed your free allowances, you’ll pay 0.6% for currency exchange, £0.20 per local transfer, and £5 for international transfers. All plans also charge 2% on ATM withdrawals.

Revolut Business Account best for

This account works particularly well for:

• Sole traders dealing with multiple currencies or international clients
• Small businesses wanting detailed expense management
• Growing companies needing team cards with spending controls
• Entrepreneurs looking to save on currency exchange costs
• UK businesses that prefer digital-only banking

Revolut Business really shines when you’re trading internationally—their exchange rates and multi-currency features can save you money compared to traditional banks. As your business expands, you can easily upgrade your plan to match your growing transaction needs without switching banks.

The Basic plan offers a decent starting point for new sole traders, though you’ll need to watch those free transaction limits.

Zempler Bank Account

Zempler Bank takes a different approach—they’ve built their accounts specifically for sole traders who want proper digital tools without losing the human touch. The setup process cuts through the usual banking bureaucracy, which makes it refreshingly straightforward for business owners who’d rather spend time growing their ventures than filling out endless forms.

Zempler Bank Account key features

Here’s what Zempler brings to the table for sole traders:

• Quick application that’s done in minutes, with instant approval for eligible customers
• Mobile app and online banking that sends you payment notifications straight away
• Works with accounting software like Xero, QuickBooks and Sage
• Built-in tools for capturing receipts digitally and creating invoices
• UK-based phone support from actual people when you need help
• Cash deposits at 11,500 Post Office locations across the country
• Spending insights that help you keep an eye on your cashflow
• Making Tax Digital features to simplify tax management
• FSCS protection up to £120,000 on eligible deposits

What sets Zempler apart is their focus on reducing paperwork—their digital onboarding process gets you up and running without the usual hassles.

Zempler Bank Account pros and cons

Good points:

• Business Go account costs nothing monthly
• Quick setup with minimal paperwork
• Better FSCS protection than most banks (£120,000 rather than the usual £85,000)
• Business tools built right into the account
• Real people on the other end of the phone when you call
• Overdraft options available if they invite you

Things to consider:

• Business Go only gives you 3 free payments each month
• Cash withdrawals cost £2 in the UK, £3 abroad on the free tier
• Cash deposits have a minimum £4 fee or 0.55% of the amount
• You can’t deposit cheques
• Some industries aren’t supported

Zempler Bank Account pricing

Zempler runs three different account levels:

Zempler Bank Account best for

Zempler works particularly well for:

• Brand new sole traders who need a free account with the basics covered (Business Go)
• Small businesses handling more regular transactions (Business Extra)
• Entrepreneurs who like digital banking but still want human support when needed
• UK-based businesses that use accounting software
• Anyone wanting better deposit protection than standard banks offer
• Sole traders who appreciate talking to real customer service people

The Business Go account makes sense for new sole traders just getting started—you get essential banking tools without monthly costs eating into your early profits.

Santander Business Account

Santander’s Business Current Account – Classic targets sole traders who need straightforward banking without too many bells and whistles. You’ll need to be UK-based and over 18 to qualify, but that’s about it for requirements.

Santander Business Account key features

The account covers the basics well enough:

• Free everyday banking for your first year if you’re starting up
• Business Mobile Banking app for managing money when you’re out and about
• Dedicated Business Banking Managers for support when you need it
• Overdraft options from £500 up to £25,000 (depending on your circumstances)
• First £1,000 of monthly cash deposits free at Santander machines
• Multiple access options—online, branches, cash machines, and Post Office locations

Santander Business Account pros and cons

Pros:

• Full 12 months without fees for new businesses and switchers
• Plenty of branches if you prefer face-to-face banking
• FSCS protection covers eligible deposits up to £85,000
• Overdraft available for those unexpected business expenses

Cons:

• £9.99 monthly charge kicks in after your free year ends
• Branch counter withdrawals cost £1.25 per £100
• Each cheque deposit costs 70p
• Fees aren’t particularly competitive compared to newer alternatives

Santander Business Account pricing

Santander Business Account best for

This works well if you’re:

• A new sole trader wanting that first year free from banking costs
• Someone who values having physical branches available
• Looking for overdraft facilities to help with cashflow
• Running a UK business with mostly domestic operations

Santander appeals to sole traders who prefer traditional banking alongside digital options, though the ongoing costs mean it’s worth comparing against newer alternatives once your free period ends.

*Revolut is transitioning to FSCS protection with new UK banking licence

This comparison shows some clear patterns—while most accounts offer accounting software integration, your needs around international payments, cash handling, and overdrafts will likely determine which suits you best. The fee structures also vary considerably, so consider both your current transaction patterns and how they might change as your business grows.

Barclays Start-up Business Account

Looking for the security of a traditional bank with modern features? Barclays brings over 300 years of banking expertise to the table with their Start-up Business Account — designed specifically for new entrepreneurs and sole traders taking their first steps into business. This established high street bank manages to blend traditional reliability with the digital tools today’s businesses actually need.

Barclays Start-up Business Account key features

The Start-up Business Account comes packed with benefits aimed at supporting new businesses:

• 12-month fee-free banking period for all new business customers
• Free accounting and invoicing software from FreshBooks, worth over £260 per year
• Access to Eagle Labs accelerator programmes for founders seeking growth
• Business relationship manager support for personalised guidance
• Mobile app banking for managing finances remotely
• Integration with major accounting software including QuickBooks and Xero
• Solutions to accept card payments through Barclaycard Payments
• Sustainability support to help businesses adopt greener practises
• Access to over 900,000 businesses community for networking opportunities

Barclays Start-up Business Account pros and cons

Pros:

• Free banking for the first 12 months
• Trusted banking name with centuries of experience
• 24/7 support through the Barclays app
• Access to business managers for advice
• Discounted partner services worth over £5,000
• Foreign exchange accounts for international trade

Cons:

• £8.50 monthly fee after the initial 12-month period
• Traditional bank structure may move slower than digital challengers
• Branch-based services increasingly limited
• Cash deposit fees from 60p per £100
• Cheque processing charges from 60p each
• Limited free digital transactions compared to some competitors

Barclays Start-up Business Account pricing

Here’s how the pricing breaks down:

• First 12 months: £0 monthly account fee
• After 12 months: £8.50 monthly account fee
• Electronic payments (Faster Payments, Direct Debits, standing orders): Free
• Debit card and ATM withdrawals: Free
• Cash deposits: From 60p per £100
• Cheques (in/out): From 60p each

Barclays Start-up Business Account best for

The Barclays Start-up Business Account works particularly well for:

• First-time sole traders who value established banking relationships
• Businesses anticipating growth that may need financing options later
• Entrepreneurs seeking mentorship and business development support
• Sole traders with complex banking needs beyond basic transactions
• Businesses requiring both digital and in-branch services
• Startups looking to connect with Barclays’ extensive business community

Great if you want that blend of traditional banking security with modern digital tools… though you’ll need to factor in those monthly fees once your free year is up. The initial 12-month free period does make it particularly attractive for new ventures, especially when you consider the business support that comes with it.

Co-operative Bank Business Account

Here’s something different — the Co-operative Bank puts ethical banking values right at the heart of what they do. With 25+ years of commitment to a customer-led Ethical Policy, they’ve carved out a unique position in the UK business banking market. For sole traders who want their banking to align with their values, the Co-op’s Business Bank Account offers a refreshing alternative.

Co-operative Bank Business Account key features

What you get with the Business Bank Account:

• No monthly account fee for your everyday banking needs
• Free automated credits and debits covering Faster Payments and standing orders
• Access to Go Get Paid app for creating and sending payment requests to customers
• Integration with accounting software including Xero, QuickBooks, and Sage
• Mobile and online banking services plus telephone and branch access when you need it
• FSCS protection up to £120,000 across all your accounts
• Optional overdraft facility subject to status and eligibility
• Discounted payment terminals through their Clover partnership
• Business insurance options available through preferred partners

Co-operative Bank Business Account pros and cons

Pros:

• Zero monthly fees for sole traders
• Branch network available when you need face-to-face support
• Free automated transactions and manual credits
• Access to merchant services and business insurance
• Strong ethical banking principles and sustainability focus

Cons:

• Cash deposit fees (£1.50 per £100) can add up
• Cheque processing charges (£1.50 per cheque)
• Smaller branch network compared to the big high street names
• Mixed reviews for their mobile app experience
• No branches available in Northern Ireland

Co-operative Bank Business Account pricing

The pricing keeps things simple:

• Monthly fee: £0
• Automated credits/debits: Free
• Cash deposits: £1.50 per £100
• Cheques in/out: £1.50 each
• ATM withdrawals: Free (at non-charging ATMs)
• International payments via SWIFT: £10 online or 0.25% (min £13, max £35) via phone

Co-operative Bank Business Account best for

This account works particularly well for:

• Sole traders who rarely handle cash or cheques in their day-to-day operations
• Entrepreneurs who want their banking to reflect their ethical values
• Small businesses seeking straightforward, free basic banking services
• UK-based sole traders outside Northern Ireland
• Business owners who appreciate having branch access options alongside digital banking

The Co-operative Bank stands out when your business values matter as much as your banking needs — though you’ll want to consider those cash and cheque fees if you handle a lot of physical transactions.

Comparison Table

Right, we’ve covered quite a bit of ground with these seven bank accounts — so let’s put it all together in one easy-to-compare table. This should help you see the key differences at a glance and work out which account might suit your particular business needs.

What stands out from this comparison? Well, if you’re after completely free banking with no ongoing costs, the digital challengers like Tide, Monzo, and Starling are hard to beat. But if you value that personal touch or need branch access, traditional banks like Barclays and Co-operative Bank might be worth considering despite their fees.

So, which account is right for your business?

Picking the right bank account can feel like a big decision when you’re running a sole trader business. While you could stick with your personal account, a dedicated business account offers real advantages for keeping your finances organised, making tax time less stressful, and building credibility with customers.

From our research, there’s a clear split between the digital-first banks and traditional providers. Apps like Tide and Monzo excel at fee-free digital banking that works brilliantly for online businesses that rarely handle cash. Virgin Money brings something different with their cashback approach, while Countingup takes the clever route of combining your banking and accounting in one place. Starling offers solid money management tools without monthly fees, and the traditional players like Barclays and Co-operative Bank give you the option of branch access when you need it.

The truth is, your business needs should drive this choice. If you’re comfortable with digital-only banking, options like Tide or Starling could save you money and time. But if your business handles lots of cash or you value face-to-face support, paying a bit extra for a traditional bank might make more sense.

Here’s what we’d suggest focusing on when making your decision:

• How often do you handle cash and cheques in your business?
• Do you need branch access or are you happy banking through an app?
• Would integrated accounting tools save you time and money?
• Are you looking for additional business support and mentoring?
• What’s your expected transaction volume each month?
• Do cashback rewards or interest on savings matter to your business?

Keep in mind that your banking needs will likely change as your business grows. Many of these providers offer upgrade paths, so you won’t necessarily need to switch banks as you expand.

The good news? There are genuinely good options available for every type of sole trader business. Whether you want to keep costs minimal, access comprehensive business tools, support ethical banking, or build a relationship with an established provider, there’s an account that fits your approach to business.

What matters most is finding the account that works with your business model rather than against it. Take some time to think about how you actually operate day-to-day, and you’ll find the right fit among these options.

FAQs

Q1. What are the key factors to consider when choosing a sole trader bank account in the UK? When selecting a sole trader bank account, consider factors such as monthly fees, transaction costs, cash deposit facilities, digital banking features, accounting software integration, and whether you need access to physical branches. Your specific business needs and transaction patterns should guide your decision.

Q2. Can sole traders use personal bank accounts for business in the UK? While it’s technically possible for sole traders to use personal accounts for business transactions, dedicated business accounts offer several advantages. These include easier expense tracking, simplified tax reporting, and potentially improved credibility with clients and lenders.

Q3. Which UK banks offer free business accounts for sole traders? Several banks offer fee-free business accounts for sole traders, including Starling Bank, Tide, and Monzo Business Lite. These digital-first banks typically provide free UK transfers and no monthly account fees, though some may charge for certain transactions or services.

Q4. Do UK business bank accounts come with overdraft facilities? Many UK business bank accounts offer overdraft facilities, but availability and terms vary between providers. For example, Starling Bank and Barclays offer overdrafts subject to eligibility, while some digital banks like Tide don’t provide this feature. Always check the specific terms with your chosen bank.

Q5. How important is FSCS protection for sole trader bank accounts? FSCS (Financial Services Compensation Scheme) protection is crucial for safeguarding your business funds. It typically covers up to £85,000 per person per bank, with some business accounts offering protection up to £120,000. Always verify the level of FSCS protection offered by your chosen bank account.