What is a business bank account?
Business current accounts have similar features to personal current accounts: you can pay in, set up payments, use a debit card, and manage your account online. Many business accounts have extra features such as invoicing, payment cards for your co-workers, and integration with accounting software.
The main difference between a business bank account and personal bank account is that the bank (and HMRC) treat the money in the account as belonging to your business. This has important tax implications.
If you're a sole trader, you and your business are the same - your business income is your income so you're liable for income tax on it. But if you run a limited company, your company is legally separate from you and your company's income is taxed differently from the money you pay yourself as income or dividends.
There are business current accounts available for sole traders, limited companies, partnerships, charities and other organisations, although not all providers offer accounts to all types of businesses.
