Best business bank accounts for UK sole traders 2026
Keeping your business money separate is one of the smartest things you can do as a sole trader. Our independent comparison of the best UK business accounts — from challenger banks to traditional options.
Quick picks
Full account reviews
Starling Bank Business is consistently rated the best sole trader bank account in the UK. It’s completely free, fully regulated (FSCS protected up to £85,000), and the app is exceptional. The Spaces feature lets you automatically set aside money for tax, VAT or expenses — a game-changer at Self Assessment time.
- Completely free — no monthly account fee
- FSCS protected up to £85,000
- Free FreeAgent accounting subscription included
- Tax Spaces — automatically set aside tax money
- Instant payment notifications
- Free UK bank transfers
- No physical branches
- Cash deposits via Post Office only (fees apply)
- Business loans limited to existing customers
Tide is built specifically for sole traders and freelancers. The standout feature is built-in invoicing: create, send and track invoices directly from your bank account app. It connects to Xero, QuickBooks and FreeAgent automatically.
- Invoicing built directly into the banking app
- Free plan available
- Connects to Xero, QuickBooks and FreeAgent
- Cashback on business spending (paid plans)
- Multiple team expense cards available
- 20p charge per transfer on free plan
- Not FSCS protected (e-money institution)
- Customer service via app chat only
Monzo Business brings the beloved Monzo experience to sole traders. The free plan includes instant spend notifications, tax pots and accounting integrations. The paid Pro plan adds invoicing and priority support.
- Excellent app, familiar to personal Monzo users
- Tax Pots to automatically set aside money for HMRC
- Free plan includes most core features
- Connects to Xero, FreeAgent and QuickBooks
- Not FSCS protected on business accounts
- Invoicing only on paid Pro plan (£5/mo)
- No physical branches or cash deposits
Revolut Business is the strongest option if you work with overseas clients or pay international suppliers. Hold and exchange 30+ currencies at interbank rates and send international transfers at a fraction of traditional bank costs.
- Hold accounts in 30+ currencies
- Interbank exchange rates on currency conversion
- Free plan includes basic features
- Connects to Xero and QuickBooks
- Not FSCS protected
- Free plan has monthly transfer limits
- Customer support can be slow to reach
Business account comparison
| Account | Monthly fee | UK transfers | FSCS protected | Invoicing | Accounting link |
|---|---|---|---|---|---|
| Starling | Free | Free | Yes | Basic | FreeAgent free |
| Tide Free | Free | 20p/txn | No | Yes | Xero, QB, FreeAgent |
| Tide Plus | £9.99 | Free | No | Yes | Xero, QB, FreeAgent |
| Monzo Free | Free | Free | No | No | Xero, FreeAgent |
| Monzo Pro | £5 | Free | No | Yes | Xero, FreeAgent |
| Revolut Free | Free | Limited | No | Basic | Xero, QuickBooks |
| NatWest Business | £10 (free 2yr) | Free | Yes | Via FreeAgent | FreeAgent free |
Do sole traders need a business bank account?
Legally, no — sole traders are not required to have a separate business bank account. However, it’s strongly recommended by HMRC and accountants. Mixing personal and business transactions makes Self Assessment significantly harder, increases the risk of missing deductible expenses, and creates headaches if HMRC ever asks questions. With free options like Starling and Monzo Business, there’s no reason not to have one. Opening takes around 10 minutes.