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.
We have found 6 sole trader business bank accounts
Initial application fee of £55 then £12.50 per month
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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!
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:
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.Compare now
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.
To be eligible for a sole trader business bank account you must:
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.
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.
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:
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.
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.
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.
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!
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.Compare now
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