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Published 01 July 2024
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Best Sole Trader Bank Accounts July 2024

Sole traders can open a business bank account to keep personal and commercial finances separate. Read on to find out about the best sole trader business bank accounts.

Many or all of the products and brands we promote and feature including our ‘Partner Spotlights’ are from our partners who compensate us. However, this does not influence our editorial opinion found in articles, reviews and our ‘Best’ tables. Our opinion is our own. Read more on our methodology here.

What our Nerds say about sole trader business bank accounts

Sole trader bank accounts are designed for self-employed individuals. If you work for yourself, either part-time or full-time, and do not own a registered limited company, you are probably classed as a sole trader.

As a sole trader, you have the option to open a standard business bank account. However, some providers also offer specific sole trader bank accounts, with extra facilities to help you manage your business’s finances. This can be particularly useful when it comes to filing your self-assessment tax return.

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If you’re a sole trader, you can manage your business’s finances through your personal bank account, but doing so can get complicated. Some banks may close your personal account if they find that you’re using it for your business. So it might be worth opening a business bank account for your sole trader activities to avoid this risk.

You should consider how much you’ll be using your account. If you’re a part-time sole trader, you’ll likely use it less than if you were self-employed full-time. Being realistic about how you’ll use your account may help you only pay for the features you actually use.

Top 10 Sole Trader Accounts

This selection of brands has been reviewed and evaluated by Nerdwallet, but others are available in the UK market. Find out what we mean when we say ‘best’, why we are comfortable using it, and an in-depth explanation of Nerdwallet UK’s review methodology.

Provider (click to learn more)

NerdWallet’s Rating

Monthly Fee

UK Card Purchase Fees

UK Bank Transfer Fees

 
4.8 / 5
Free
Free
Free
4.7 / 5
Free
Free
From free
4.7 / 5
Free
Free
Free

TSB
4.5 / 5
Free for 30 months
Free
From free
4.4 / 5
Free for 12 months
Free
Free
4.3 / 5
Free for 30 months
Free for 30 months
Free for 30 months
4.2 / 5
Free for 12 months
Free
Free
4.2 / 5
Free for 12 months
Free
Free
4.1 / 5
Free
Free
Free

RBS
4.1 / 5
Free
Free for 24 months
Free for 24 months

Important Information: Our Reviews, Star Ratings and Editor’s Picks do not consider the product provider’s lending rates and therefore do not reflect how much it costs to borrow from the reviewed brand. Always compare rates from other providers when considering any type of borrowing.

Top 10 Best Sole Trader Account Providers

This top 10 is from 23 business bank accounts that NerdWallet evaluated and reviewed. Others are available. Find out how we use ‘best’ and our guide to ratings. 

Monzo Lite Business Account

4.8 NerdWallet's ratings

Free

Free

Free

n/a

  • Available to sole traders, or the director of a registered limited company by shares (Ltd)
  • Must be based in the UK
NerdWallet's Review Summary

With its simple and well-received offering Monzo Business, is a great option for anyone just starting out.  

Monzo offers an array of business banking services that are useful to sole traders, including accounting software integration and its ‘tax pots’ feature. However, some features are only available to customers who pay the monthly fee for Monzo’s Pro account. 

For further details, read NerdWallet’s Monzo Business Account Review.

Monzo key features:

  • Speedy account opening: Most accounts are up and running on the same day as an application is made. 
  • FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
  • Free UK transfers: Business banking customers can make unlimited free electronic payments in the UK.
  • 24/7 customer support: Monzo’s in-app customer support is available at all hours for customers with urgent concerns.
NerdWallet's Pros & Cons

Pros:

  • Monzo’s Business Lite account has no monthly fees. 
  • Customers can manage their money online or via Monzo’s well-reviewed mobile app.
  • Most customers receive access to online banking on the same day as they apply.

Cons:

  • Customers cannot manage their accounts in-person, as Monzo does not offer telephone banking and has no branches.
  • There are no Monzo accounts available to charities or partnerships.

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Virgin Money M Account for Business

4.7 NerdWallet's ratings

Free

Free

From free

3 months’ free QuickBooks or Xero

  • Available for eligible businesses with up to £1m annual turnover
  • Must be based and operated in the UK (excluding Channel Islands, Isle of Man and Northern Ireland)
  • All owners, directors, senior managers and account signatories must be over 18 years old
NerdWallet's Review Summary

Virgin Money’s M Account for Business does not charge a monthly fee and is designed for start ups and small businesses with an annual turnover of less than £1 million. Account extras include cashback on debit card purchases, while customers can also apply for an overdraft. 

For further details, read NerdWallet’s Virgin Money Business Account Review.

Virgin Money key features:

  • Account extras: Perks include cashback when using the business debit card and discounts with selected retailers and merchants. 
  • FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
  • Free everyday banking: Basic electronic transactions are free for customers with an M Account for Business.
NerdWallet's Pros & Cons

Pros:

  • Virgin Money’s M Account for Business has no monthly fee.
  • Cashback of 0.25% on business debit card purchases.
  • Eligible deposits of up to £85,000 will be protected by the Financial Services Compensation Scheme (FSCS).

Cons:

  • Virgin Money does not offer 24/7 customer support.
  • The free M Account can only be opened by businesses with annual turnover of less than £1 million.
  • Customers in the South of England, Wales or Northern Ireland do not have access to nearby branches.

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Starling Bank Business Account

4.7 NerdWallet's ratings

Free

Free

Free

n/a

  • Must be a Limited Company or LLP registered at Companies House. General partnerships or charities that aren’t registered as a Limited Company aren’t supported yet
  • All directors with access to the account must be UK residents
NerdWallet's Review Summary

Starling’s free account for sole traders, limited companies and limited liability partnerships carries no fees for basic transactions. In addition, the provider’s app is among the best-reviewed in the banking market and customers can access support 24/7. 

Starling key features:

  • No monthly fees: There is no monthly fee for Starling’s business bank account.
  • Transaction fees: Customers can make Faster Payments, direct debits and standing orders for free within the UK.
  • FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme. 
NerdWallet's Pros & Cons

Pros:

  • There is no monthly fee for a basic Starling account.
  • Electronic transactions such as Faster Payments, direct debits and standing orders are free within the UK.
  • Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).

Cons:

  • Some account features are only included as part of the Business Toolkit, which costs an extra £7 a month.
  • There is no option to manage your money over the phone or at a branch.
  • Customers wanting to deposit cash will need to do so at the Post Office and pay a £3 minimum fee.

TSB Business Plus Account

4.5 NerdWallet's ratings

Free for 30 months

Free

From free

30 months of free Business Banking when you switch to TSB

  • Your business must be registered in the UK
  • Must be 18 years or over
NerdWallet's Review Summary

With branches across England, Scotland and Wales, TSB offers a variety of services for businesses registered in the UK. The bank’s Business Plus Account comes with a sizeable 30-month fee-free period, though it then costs £5 per month and carries some transaction fees.

For further details, see NerdWallet’s TSB Business Account Review.

TSB key features:

  • Branch network: Banking at a branch is available to customers in Scotland, England and Wales.
  • Introductory offer: Spanning 30 months, TSB’s introductory offer period is much longer than many of its rivals.
  • FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons

Pros:

  • At 30 months, TSB’s introductory period is considerably longer than the majority of the competition.
  • Accounts can be managed online, via the app, over the phone or at a branch.
  • Eligible deposits of up to £85,000 are protected by the FSCS.
  • Customers with a Business Plus account get free access to payment services app Revenu for 12 months.

Cons:

  • Customers in Northern Ireland have no access to in-branch banking.
  • Business accounts cost £5 per month (for accounts with average monthly balances of under £10,000) following the end of a 30-month fee-free period, while some transaction charges may also apply.
  • At 12 days, TSB is slower to set up a business bank account than many other providers.

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

HSBC Kinetic Current Account

4.4 NerdWallet's ratings

Free for 12 months

Free

Free

n/a

  • You are the sole trader, or sole director and sole shareholder of the limited company
  • Must be a tax resident in the UK but not the Channel Islands or the Isle of Man
  • Maximum annual turnover of £6.5M
NerdWallet's Review Summary

This app-based business account is designed for sole traders and sole directors with an annual turnover of less than £6.5 million. The app is one of the best reviewed out there and is backed by a traditional bank. 

HSBC Kinetic key features:

  • Fee-free period: There are no monthly fees for the first 12 months after opening an HSBC Kinetic account. 
  • Transactions fees: Customers do not have to pay for direct debits, standing orders and other payments.
  • Borrowing: Customers can apply for a business overdraft, credit card or HSBC Kinetic Small Business Loan of up to £10,000.
  • FSCS protection: Deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons

Pros:

  • Transactions, such as direct debits and standing orders, are totally free with HSBC Kinetic.
  • Borrowing options include a business overdraft, credit card or the specific HSBC Kinetic small business loan.
  • Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS).

Cons:

  • Following an initial year-long introductory period, an account costs £6.50 a month.
  • HSBC Kinetic Current Account is only available to sole traders and limited companies with just one director who is the sole shareholder, and a maximum annual turnover of up to £6.5 million.

The Co-operative Bank Directplus Business Account

4.3 NerdWallet's ratings

Free for 30 months

Free for 30 months

Free for 30 months

Free everyday business banking for first 30 months + free access to the Go Get Paid app

  • Must be aged 18 or over
  • Must be a UK resident with a business address in the UK
  • Must be either a Sole trader or partnership, Limited liability partnership, Limited company
NerdWallet's Review Summary

With ethical and sustainable practices at the forefront of the Co-Operative Bank’s ethos, the provider could be attractive to business owners who prioritise social responsibility. There are also many different accounts to choose from, meaning there are options for a variety of businesses and charities.

The Co-operative Bank key features:

  • Account options: With a choice of six different business accounts, there are options for many different kinds of customers.
  • FSCS protection: Your eligible deposits, up to £85,000 across all of your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
  • Borrowing: Borrowing options include an arranged overdraft, a charge card for expenses, a credit card, and a variable rate business loan.
  • Account management: Customers can manage their money online, over the phone, via the app and at a branch.
NerdWallet's Pros & Cons

Pros:

  • Some accounts with the Co-operative Bank have no monthly service fee, including a small business account developed specifically for members of the Federation of Small Businesses. 
  • Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
  • There are no transaction fees for basic electronic transactions, such as direct debits, standing orders, card purchases and ATM withdrawals.
  • Borrowing options include a business overdraft, credit card, charge card and loan.

Cons:

  • With average account opening times of 14 days, the Co-operative Bank is slower off the mark than many of its competitors.
  • There is no 24/7 customer service available.
  • Customers in Northern Ireland have no access to branches.

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

HSBC Small Business Banking Account

4.2 NerdWallet's ratings

Free for 12 months

Free

Free

n/a

  • For small enterprises (including not-for-profits) with borrowing needs of up to £100k
  • Must be a tax resident in the UK but not the Channel Islands or the Isle of Man
  • Not available for sole trader or single director shareholder businesses
NerdWallet's Review Summary

HSBC offers a range of business accounts for different needs, including an account tailored specifically for small businesses. HSBC’s business accounts offer free basic banking transactions but charge a monthly fee once the 12-month free period (if applicable) ends.

These options are separate from HSBC Kinetic, which NerdWallet has reviewed separately.

HSBC key features:

  • New customers: HSBC’s introductory offer for business accounts includes 12 months of free banking.
  • Transaction costs: Everyday banking transactions are free with an HSBC business account.
  • Credit facilities: Borrowing options include business overdrafts, credit cards or loans.
  • FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
NerdWallet's Pros & Cons

Pros:

  • HSBC’s introductory offer for its small business banking account and business banking account includes free banking for 12 months, as well as free daily transactions.
  • Accounts can be accessed online, via a mobile app, over the phone or at a branch.
  • Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS).
  • HSBC also offers borrowing options such as a business loan.

Cons:

  • Following an introductory period, HSBC’s business accounts charge a monthly maintenance fee of £8.
  • HSBC’s app has not been as well-recieved as many competitor’s offerings.

Barclays Business Account

4.2 NerdWallet's ratings

Free for 12 months

Free

Free

Free invoicing and accounting software

  • Must have an annual turnover between £400k- £6.5m
  • Must have a straightforward and clearly defined ownership structure
  • Must be at least 18 years old and be based and operate in the UK – including business owners
NerdWallet's Review Summary

This British high-street bank has specific accounts for startups, established businesses and charities or community groups. With branches all across the UK and considerable borrowing options, Barclays could be a great option if you prefer a traditional bank. 

For more details, read NerdWallet’s Barclay’s Business Account review.

Barclays key features: 

  • Account access: Accounts can be managed online, via the app, over the phone, or at the wide range of Barclays branches.
  • Credit facilities: Barclays offers a wealth of borrowing options, including loans, mortgages and overdrafts.
  • FSCS Protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons

Pros:

  • There are a variety of different accounts for those in different circumstances, with accounts for start ups or more established businesses, as well as charities and community groups.
  • Customers can enjoy free access to Freshbooks accounting software.
  • Eligible deposits of up to £85,000 are protected by FSCS.
  • Customers do not need to pay for basic transactions, such as direct debits and standing orders.

Cons:

  • Barclays business accounts carry an £8.50 per month maintenance fee after the end of the introductory offer period. 
  • An average set-up time of 8 days and the potential for a 50-day wait makes Barclays one of the slowest account openers.
  • Only businesses that have been trading for less than a year can apply for a Barclays start-up account.

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Mettle Business Bank Account

4.1 NerdWallet's ratings

Free

Free

Free

FreeAgent Included

  • For sole traders or limited companies with up to two owners
  • Maximum balance of £1million
  • You’ll need an iOS or Android device to open and manage the account
  • For UK-based companies with owners who are UK residents and pay tax in the UK only
NerdWallet's Review Summary

Mettle is an offshoot of the NatWest Group and brings to the table a business account made specifically for self-employed workers and limited companies with up to two owners. These accounts have no monthly fees or transaction charges and offer users the chance to manage their accounts through one of the best reviewed apps on the market. 

For more details, read NerdWallet’s Mettle Business Account review.

Mettle key features: 

  • Great app: Mettle’s business banking app has top review scores across different platforms.
  • For sole traders: Mettle has an account that is specifically designed for UK-based sole traders, as well as an account for limited companies with a maximum of two owners.
  • Deposits protected by FSCS: Eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme.
NerdWallet's Pros & Cons

Pros:

  • Accounts are completely free, with no monthly fees or transaction charges.
  • Mettle has one of the best-reviewed business banking apps on the market.
  • Cash deposits can be made at the Post Office (and also at a PayPoint for e-accounts).
  • Customer support is accessible via the app or email and over the phone seven days a week.
  • Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).

Cons:

  • There is no way to access support in a branch.
  • Account holders cannot deposit cheques.
  • You cannot make international payments with a Mettle account.
  • Mettle does not provide borrowing options such as overdrafts, credit cards or loans.

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

RBS Start Up Business Account

4.1 NerdWallet's ratings

Free

Free for 24 months

Free for 24 months

24 months free banking

  • Available to eligible customers over 18, who have the right to be self employed in the UK
  • This ‘Startup business account’ is available for businesses that have been trading for less than 1 year and have a projected or existing annual turnover of less than £1m
NerdWallet's Review Summary

The three different accounts offered by RBS only charge for what customers use, meaning there is no fixed maintenance fee. 

With a Start-Up Account that carries no transaction fees for the first 24 months, new sole traders could find this an attractive option. 

For more details, see NerdWallet’s RBS business account review.

RBS key features:

  • Fee-free period: The Start-Up Account has no transaction fees for the first 24 months.
  • Borrowing options: Customers can get a business overdraft, credit card or loan with RBS.
  • Extras: RBS customers get free access to FreeAgent accounting software and access to a dedicated relationship manager.
  • FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons

Pros:

  • The Start-Up Account has no monthly cost and includes a 24-month introductory period with no digital transaction fees.
  • Around 85% of RBS customers get their business accounts up and running on the same day they apply.
  • Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
  • RBS accounts can be managed at a branch, over the phone, online and via the app.

Cons:

  • RBS is best suited to customers in Scotland, with customers in England and Wales likely to be directed towards NatWest and those in Northern Ireland likely to be directed to Ulster Bank. 
  • Eligibility requirements for the RBS Start-Up Account mean businesses will need to have been trading for less than a year in order to apply.
  • Following initial fee-free periods, RBS business customers need to pay for most transactions.

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

This top 10 only contains business account providers reviewed by NerdWallet UK.

The pros and cons featured here are chosen by us based on a combination of our expert, research-based opinions and an exclusive survey of UK business owners and decision makers. The survey was conducted on behalf of NerdWallet UK in December 2022 to identify the business bank account features that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and cons are subjective and you should align them to your own personal and business circumstances. Information was correct at the time of publication but may have changed since. 

Top 10 Sole Trader Bank Accounts: Summary

This top 10 is from 23 business bank accounts that NerdWallet evaluated and reviewed. Others are available. Find out how we use ‘best’ and our guide to ratings. 

ProviderStar ratingNo. of business accountsFree account available?*
Monzo2Yes
Virgin Money4Yes
Starling4Yes
TSB1No
HSBC Kinetic1No
The Co-operative Bank6Yes
HSBC6No
Barclays3No
Mettle1Yes
RBS3Yes

This top 10 only includes providers currently offering accounts to new customers.

*We have defined free accounts as ones that do not charge a monthly or annual fee. This definition does not include business bank accounts that offer a fee-free introductory offer period; require a special status, such as a charity account; or have minimum turnover or balance requirements.

What is a sole trader bank account?

A sole trader bank account is a business account for sole traders. If you are a freelancer or self-employed – meaning you’re solely responsible for your business’s success, and haven’t set up a limited company for your work – then you’re a sole trader. And you could benefit from a sole trader bank account.

Many banking providers allow sole traders to open standard business bank accounts, which offer features such as:

  • bank transfers
  • cash deposits
  • overdraft facilities
  • accounting software integration
  • dedicated help and support

But some banks may also offer accounts specifically designed for sole traders, with helpful tools if you’re going it alone, including bookkeeping services and automatic invoice creation.

Certain accounts will also help you estimate the tax you will have to pay when you file your self-assessment return.

Do I need a business account as a sole trader?

No, but it may be advisable.

You do not need a business bank account as a sole trader – you are legally allowed to run your business finances through your personal account. This is because you, as a taxpayer, and your business, are considered the same legal entity.

» MORE: Can I use a personal account for business?

That said, you may want to consider opening a separate business bank account. Although HMRC treats your finances and your business’s finances as the same, your bank may not see it that way. Using your personal account for business purposes is often against the terms and conditions. Banks can ask for you to open a separate business account or close your personal account if they suspect that you are using it for business transactions.

What is more, it is easier to keep your business’s finances organised and easy to read – one of your obligations while self-employed – if you use separate accounts for your sole trader transactions and your personal finances.

» MORE: Guide to self-employed bank accounts

How to set up a sole trader bank account

You can set up a sole trader bank account in the same way as a standard business bank account. As a sole trader, you will usually need the following documents:

  • photo ID – a passport or your driving licence, for example
  • proof of address – such as a utility bill or a recent bank statement
  • proof of business – documents that prove your business is trading, such as social media pages, invoices, or your Unique Taxpayer Reference (UTR).

» MORE: How do I open a business bank account in the UK?

Depending on the provider, your sole trader bank account may be opened on the same day that you apply. This is most common among challenger banks where you apply online or on a mobile app. If you’re accepted, you may receive your sort code and account number almost straight away.

On the other hand, traditional high street banks might take a little longer to open your sole trader bank account. But a high street bank might offer a better fit for your individual circumstances overall. It is a good idea to compare both types to help you find what works for your situation.

How to choose the best deal for my sole trader bank account

To get the best deal for your sole trader bank account, it’s worth shopping around. But before you look at everything on offer, you should pin down what you need from your business account.

You may want to ask yourself a few questions about how you bank, including:

  • Do you prefer banking in person? You may want to pick a high street bank with a branch nearby.
  • Do you like banking digitally? A challenger bank might offer the right solution for you.
  • How many transfers or cash deposits do you usually make each month? If you make lots of transactions or cash deposits, you’ll want to look for an account where these are free or available for a low fee.
  • Do you want extra features such as accounting software integration?
  • Will you need an overdraft in future? Not all banking providers offer these, so it is a good idea to check in case you want to use one in future.

You should consider how often you will use your account, and which types of transactions you are likely to make most.

If you are self-employed part-time – say you work on your business in the evenings – you may not make many transactions in a month. In this case, you might want to look for a business account which charges per transaction, so you only pay for the features you actually use.

On the other hand, if you’re self-employed full-time, you may want to look for an account which does not charge for transfers or deposits, especially if you take cash. A business bank account that includes all features under a flat monthly rate could be more suited to your needs.

Once you know what you want from your sole trader account, you can compare what different providers offer and choose the account that best fits your needs.

» MORE: Do I need a business bank account?

Business Bank Account Methodology

NerdWallet evaluated and reviewed 23 business bank accounts from high street and digital-only banks. Collectively, these accounts represent the largest banks by assets and internet search traffic, along with notable or emerging players in the industry.

We considered more than 10 data points for each account, based on the criteria that matter most to users, scoring them on fees, accessibility and customer service, among other factors. This information was gathered from each financial institution’s website and company representatives. In addition, data is collected regularly and reviewed by our editorial team for consistency and accuracy.

Using the same data across all products and features we were able to create star ratings presented on a scale of one to five stars, where a one-star score represents ‘poor’ and a five-star score represents ‘excellent’. 

While we try to provide you with accurate information, the providers can change the terms of their products at any time, therefore it is advisable to check the terms before you proceed. Read more on our business bank account methodology.

Sole Trader Business Bank Accounts FAQs

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, you are likely 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 taxpayer, 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.

Dive even deeper

How to Set Up as a Sole Trader

How to Set Up as a Sole Trader

If you have income from self-employment, you may have to set up as a sole trader. Sole traders have responsibilities including keeping accurate records and managing their accounts. You may also need to register for self-assessment. Find out more here.

Sole Trader vs. Self-Employed: What’s the Difference?

Sole Trader vs. Self-Employed: What’s the Difference?

Day to day, there is little distinction between self-employment and being a sole trader. But what is the difference, and how does it impact on you? Let’s look at the meaning of self-employment versus sole trader.

Should I Register as a Sole Trader or Limited Company?

Should I Register as a Sole Trader or Limited Company?

The legal status you choose for your business has major implications for tax, earnings and even survivability. Should you be a sole trader or a limited company – and how to reach that decision?

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