Compare Sole Trader Business Bank Accounts
- Sole traders can open a business bank account to keep personal and commercial finances separate
- Many business bank account providers offer products to sole traders in all types of industry
- Compare the latest deals, features and costs of sole trader business bank accounts
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Sole Trader Business Bank Accounts
What is a sole trader business bank account?
A sole trader business bank account is a relatively straightforward business bank account aimed at people operating as a self-employed sole trader. These are often freelancers who have not set up their own limited company but who do want to keep their business finances separate from their personal finances.
They may also want access to some accounting tools that will help them to keep track of their income and outgoings related to their work, and help them to do things like raise invoices and complete their self-assessment tax return.
Who might want to open a sole trader business bank account?
If you are self-employed but have not registered a limited company with Companies House, it’s likely that you are operating as a ‘sole trader.’ Just like with any business, you will have business income and business expenses and you will want to keep track of these so that you can complete your self-assessment tax return at the end of the year. Opening a sole trader business bank account can be helpful, as it will separate all of your business finances from your personal finances.
Do I have to open a business bank account if I am a sole trader?
No. You are legally allowed to run your business finances through your personal account if you are a sole trader. This is because you, as a tax payer, and your business, are considered the same legal entity.
How much do sole trader business bank accounts cost?
This varies from provider to provider, so it pays to do some research by comparing sole trader business bank accounts before you decide which one to open – or whether to open one at all. Sole trader business bank accounts are also often aimed at people with small limited companies and usually charge you in some shape or form.
Some will charge you a monthly fee, or maybe an annual fee. They may also charge you for transactions, such as a percentage of deposits made, or for using your debit card. Some sole trader business accounts will offer a free initial period, but will start to charge you after that period ends.
What services do sole trader business bank accounts offer?
Again, this depends on the type of sole trader business bank account you open. Make sure you check that the account you are interested in offers all the services you need. Here are some of the services regularly offered by sole trader business bank accounts:
- Accepting deposits
- ATM withdrawals
- Bank transfers
- Bill payment through direct debit
- Standing orders
- Accounting tools
- Apps to track spending and balances
- Invoice tools
- Cheques
- Debit cards
- Online payments
How do I open a sole trader business bank account?
Sole trader business bank accounts that are based online and do not offer credit cards or overdrafts are usually very quick and easy to open and you will often be able to do so with no credit checks. However, regardless of how simple the account is, you will always need a business address and will usually need to be able to give some simple information about your business activities to the provider.
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Acorn Business Bank Accounts
The Acorn Business Account provides straightforward online business banking that is suitable for people with poor credit ratings.
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ANNA Business Bank Accounts
App-based business current account with a debit Mastercard from Absolutely No Nonsense Admin Ltd.
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CardOneMoney Business Bank Accounts
App-based business current account designed for small businesses with a prepaid Mastercard and no credit checks required.
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Cashplus Business Bank Accounts
Alternative to traditional business bank account that can be opened with instant online decision and no credit check.
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Countingup Business Current Accounts
Business current account mobile app with automated bookkeeping features and corporate contactless MasterCard.
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Mettle Business Bank Accounts
A digital business account by NatWest and provided by Prepay Solutions.
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Revolut Business Bank Accounts
Global, multi-currency business current account with a range of price plans for businesses of different sizes.
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Starling Bank Business Current Accounts
Straightforward, app-based business banking service for UK firms and sole traders.
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Tide Business Bank Accounts
Business current account app with contactless business Mastercard, quick setup and straightforward fees.
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