Best Business Bank Accounts for UK Sole Traders (2026)
Updated August 2026
A separate business account makes it far easier to track income and expenses at tax time. Most UK sole traders can open one free, in minutes, with no credit check required.
Tide — Free Business Bank Account
Open a free UK business account in minutes, with expenses, invoicing and tax pots built in — our recommended option for sole traders wanting a fast, free setup.
Open a free Tide account →How the main free options compare
Several UK banking apps offer free business accounts for sole traders. Here's how the main ones compare (features change over time, so check current terms before applying):
| Provider | Cost | Notable |
|---|---|---|
| Tide | Free (paid plans available) | Fast setup, built-in invoicing and expense tools, tax pots |
| Starling Bank Business | Free | Full UK bank, FSCS protected, strong accounting software integrations |
| Monzo Business | Free (Lite) / £9/mo (Pro) | Free tier lacks invoicing; Pro adds Xero/QuickBooks integration |
| Mettle (NatWest) | Free | No-frills option for sole traders and very small companies |
| Revolut Business | From £10/mo | Strong for international payments; not FSCS protected |
We're not affiliated with Starling, Monzo, Mettle or Revolut — they're included here for comparison only. Our recommended partner is Tide, below.
FAQs
Do sole traders legally need a separate business account?▼
No, sole traders can legally use a personal account for business, but a separate account makes it far easier to track income and expenses for Self Assessment, and is required by some accounting software integrations.
Is FSCS protection important?▼
If your account is FSCS protected, your money is covered up to £85,000 if the provider fails. Not every business banking app is a fully licensed bank, so it's worth checking before keeping large balances anywhere.
Can I have more than one business account?▼
Yes, there's no restriction on holding multiple business accounts — some sole traders use one for day-to-day spending and another purely for setting aside tax.
Once your account is set up, track everything for free with PayToolkit's Expense Tracker and Tax Dashboard. If your finances are more complex, PayToolkit Accounting Services can help.
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