Compare Sole Trader Business Bank Accounts

Find a sole trader bank account for your firm. Don’t waste time or pay unnecessary costs, compare the best self-employed & sole trader business bank accounts using our free tool.

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We have found 6 sole trader business bank accounts

Special Offer OFFER

Cashplus Bank

Business Bank Account

Cashplus Bank logo
Cashplus Bank logo

Account Fee

Free

Free Banking Duration

-

Interest (AER)

0%

Great for

  • No credit check to apply
  • Account and Sort number available for approved customers
  • Online application, apply in under 5 minutes
  • Mobile App and Online Banking available. Cash deposits and withdrawals available via the Post Office

But be aware that

  • You must have a working mobile phone and email address

Eligibility

  • You must be a UK director and at least 18 years old
  • You must be a UK resident

Key facts

Account Fee: Free
Direct Debits: Yes
Standing Orders: Yes
Mobile App: Yes
Credit Facility: Yes - Subject to eligibility
Foreign Exchange: No

Starling Bank

Sole Trader Current Account

Starling Bank logo
Starling Bank logo

Account Fee

Free

Free Banking Duration

-

Interest (AER)

0%

Great for

  • Online application, sign up under 10 minutes

But be aware that

  • You must have a working mobile phone and email address

Eligibility

  • You must be a UK resident and at least 18 years old
  • Meet standard AML/KYC, fraud and credit checks and processes.

Key facts

Account Fee: £0
Direct Debits: Yes
Standing Orders: Yes
Mobile App: Yes
Credit Facility: No
Foreign Exchange: No

Tide Banking

Business Current Account

Tide Banking logo
Tide Banking logo

Account Fee

Free

Free Banking Duration

-

Interest (AER)

0%

Great for

  • Invoicing directly from the Tide app

But be aware that

  • You must have a working mobile phone and email address

Eligibility

  • You must be at least 18 years old
  • You must be a UK resident
  • You must not be bankrupt
  • You must have a working mobile phone and email address

Key facts

Account Fee: From £0 to £49.99 + VAT per month
Direct Debits: Yes
Standing Orders: Yes
Mobile App: Yes
Credit Facility: On application
Foreign Exchange: No

Anna Money

Business Current Account

Anna Money logo
Anna Money logo

Account Fee

Free

Free Banking Duration

-

Interest (AER)

0%

Great for

  • Invoicing directly from the Anna app

But be aware that

  • This plan has monthly limits of £500 income

Eligibility

  • You must be at least 18 years old
  • You must be a UK resident
  • You must not be bankrupt
  • You must have a working mobile phone and email address

Key facts

Account Fee: From £0 to £19.90 per month
Direct Debits: Yes
Standing Orders: Yes
Mobile App: Yes
Credit Facility: No
Foreign Exchange: Provided via Payoneer

CardOneMoney

Business Current Account

CardOneMoney logo
CardOneMoney logo

Account Fee

Initial application fee of £55 then £12.50 per month

Free Banking Duration

-

Interest (AER)

0%

Great for

  • No credit checks to open an account

But be aware that

  • You must have a working mobile phone and email address

Eligibility

  • £55 Application Fee
  • You must be at least 18 years old
  • You must be a UK resident
  • You must not be bankrupt

Key facts

Application Fee: £55.00 to apply
Account Fee: From £12.50 per month
Direct Debits: Yes
Standing Orders: Yes
Mobile App: Yes
Credit Facility: No
Foreign Exchange: No

Revolut

Business Current Account

Revolut logo
Revolut logo

Account Fee

Free

Free Banking Duration

-

Interest (AER)

0%

Great for

  • Online application, sign up under 10 minutes

But be aware that

  • You must have a working mobile phone and email address

Eligibility

  • You must be a UK director and at least 18 years old
  • You must be a UK resident

Key facts

Account Fee: From £0 to £100 per month
Direct Debits: Yes
Standing Orders: Yes
Mobile App: Yes
Credit Facility: No
Foreign Exchange: No

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Business bank accounts to suit all types of UK SMEs

Whether you are a small start-up looking to open a new business bank account, or a large established SME looking to switch, we have a range of online bank accounts that cater for all types of businesses.

Find the right account for your business today!

Business Switcher Bank Accounts

Switching

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Start Ups

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Bad Credit

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Free Business Banking

Free Banking

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Business Bank Accounts For Contractors

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Business Bank Accounts For Sole Traders

Sole Traders

Bank accounts for sole traders and self-employed.

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Anna Business Bank Account logo
Starling Bank Business Bank Account logo
Cashplus Business Bank Account logo
Card One Money Business Bank Account logo
Tide Business Bank Account logo
Revolut Business Bank Account logo

We’ve helped many self-employed people find the right sole trader bank account for their business needs

We work with an extensive range of business bank account providers in the UK. Our sole trader bank account comparison can help you choose the best offer that's right for your business so you can keep on top of your firm’s finances.

To compare sole trader accounts, follow our three simple steps:

Capalona business bank accounts
  • 1
    Search Offer
    Search for your preferred business bank account from startup bank accounts to switching bank accounts.
  • 2
    Compare Providers
    Compare business bank account providers in seconds.
  • 3
    Select & Apply
    Simply select the best business bank account offer for your needs. You'll be redirected to the provider's website to complete the process.

Business Bank Accounts for Sole Traders

Setting up as a sole trader is the most simplistic way to start a business, and it’s a popular option, too, with over 3.5 million sole proprietorships currently registered in the UK. As a sole trader, you don’t have any directorial obligations, you don’t pay corporation tax, and it’s pretty self-explanatory when it comes to filling in and submitting your annual tax return. It’s the quickest way to set up a business, plus it’s free to do so.

So, with that said, if you’re a sole trader or are self-employed and you’re in the market for a business bank account - you’ve come to the right place. Our free comparison service will let you quickly find the best sole trader bank account UK deals on the market.

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It's easy to compare sole trader bank accounts

What is a sole trader / self-employed business bank account?

A sole trader or a self-employed bank account works much like your personal bank account. You can get paid by your customers directly into your business bank account, keeping your finances separate from your personal bank account.

You are not required by law to have a sole trader business account if you’re a sole trader. But it can make life a bit easier and help keep your accounts organised. For example, when it comes to submitting your tax return, you no longer have to sift through personal purchases to locate your business transactions.

Compare sole trader bank accounts.

Am I eligible for a sole trader / self-employed business bank account?

To be eligible for a sole trader business bank account you must:

  • Be a new sole trader, or a self-employed person looking to open your first account
  • Pass lender eligibility (all criteria are listed on our dedicated provider page)
Remember, you can switch to a free bank account at any time, and you are not legally required to open a business bank account as a sole trader or self-employed person.

What is the best sole trader or self-employed business bank account for 2021?

The accounts listed above are updated frequently, so you can be confident that you’re comparing the best deals currently on the market for self-employed and sole trader business accounts.

At Capalona, we’ve set up our comparison service to ensure you will be able to find the best bank account for your self-employed business, and be able to set up an account on the same day.

Compare bank accounts now..

Do I need a business bank account if I’m a sole trader?

As a sole trader, you can use your personal bank account for all business transactions (paying for business items, receiving money from clients etc.) - it is not a legal requirement for you to open a business account. It’s a good idea to set one up if you plan to someday become limited, you want to keep an eye on cash flow or just want to be a little more organised.

Why use sole trader bank accounts?

As we’ve mentioned, it’s not a legal requirement for sole traders to open up a separate account for their businesses. This is because, for sole traders, personal and business income are treated as one by HMRC.

However, depending on the size of your sole trader firm, some banks will not let you use your personal account for business purposes. What’s more, opening up a self employed bank account offers a number of benefits:

  • Monitor business cash flow effectively: Keeping your finances separate will help you analyse the financial health of your business. When business finances are mixed in with personal, it can become harder to analyse cash flow and spot any potential shortfalls.
  • Helps with your professional image: Sending client invoice payments to a sole trader account can make your company seem more professional and help people take your business seriously.
  • Efficient filing of annual tax returns: As a sole trader, you can offset allowable expenses relating to your business when it comes time to file your tax return. This can be difficult to do when all expenditure is lumped into one account. Keep your self-employed business income and expenses in one place.
  • Growing your sole trader business: You might reach the point where you’re ready to spend additional costs, such as hiring full time staff and making payments like NIC. All of this is easier to manage from a sole trader business account.

Do I need a business bank account if self-employed?

Being ‘self-employed’ means that you work for yourself, whereas the term ‘sole trader’ refers to the structure of a business. Sole traders are self-employed, but if you’re self-employed, it doesn’t necessarily make you a sole trader.

Being self-employed means you could choose to set up as a sole trader, business partnership or limited company. So, unlike with limited companies and partnerships, if you’re a self-employed sole trader, you still aren’t legally required to set up a business bank account.

With that being said, self employed bank accounts are the sensible option for successfully managing business finances.

How do I apply for a sole trader / self-employed business bank account?

Applying for a self-employed business bank account is easy. After comparing sole trader account providers above, click the ‘go to site’ button for your provider of choice and complete your application directly on their website. Most providers will need a photo ID to open an account.

Ready to compare providers? Yes, take me to the comparison table.

Are there ‘no credit check’ sole trader bank accounts?

Yes, there are sole trader bank accounts that don’t require a credit check. These types of accounts may be limited in the features and credit facilities. Feature limitations can include no access to a credit facility and no access to prepaid business cards.

What should I consider when choosing a sole trader business bank account?

With so many sole trader account providers, it can be hard to determine which is the best choice. The account you choose will depend on your needs, and it’s a good idea to think about account perks that may be valuable to you.

Some providers offer cashback on business purchases, others have helpful invoicing and account reporting services. At first glance, the options may seem overwhelming. For this reason, using a comparison service like ours can help you to quickly and easily find the right provider for your business needs.

We take into consideration everything you should be thinking about, including account set up, interest rates, eligibility and individual offering. It’s never been so easy to get started!

Setting up a sole trader bank account is easy

Step 1. Compare offers - Use our free comparison table to easily compare up-to-date sole trader bank accounts on offer.

Step 2. Choose an offer - Once you’ve settled on a provider for your self-employed bank account, check you meet their eligibility criteria on our dedicated provider page.

Step 3. Apply online - Click ‘go to site’ and apply directly on the provider’s website. Simple.

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