Business Banking

Bank accounts built for sole traders and freelancers.

You’re not legally required to have a separate business bank account as a sole trader - but it’s strongly recommended. Mixing personal and business transactions makes your bookkeeping significantly harder and your self assessment more time-consuming. The good news is that business banking has become much more accessible: several app-based accounts are free to open, and some come with genuinely useful features like tax pots, receipt capture and built-in invoicing.

What to look for

• Monthly fees - Starling and Monzo both have free tiers. Tide is free at the basic level, with paid tiers from £12.49/month that add more features. Wise charges a one-off £50 setup fee.

• International payments - if you invoice clients in other currencies, Wise Business is built for this and significantly cheaper than traditional banks for international transfers.

• Built-in tools - Monzo Business (paid tier) has tax pots and MTD filing tools; Starling includes receipt capture; Tide includes invoicing. Worth checking what’s included before paying for separate tools.

• Integration with accounting software - most of these accounts connect to Xero, QuickBooks and FreeAgent via bank feeds. Check your preferred accounting tool’s integration list before choosing.

• FSCS protection - Starling is a fully licensed bank with FSCS protection. Monzo is also FSCS protected. Wise and Tide are regulated as e-money institutions, which has different (more limited) protections.

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Tide

Business bank account built specifically for sole traders and small businesses. Includes invoicing tools.

Best for: Sole traders wanting a dedicated business bank account with built-in tools

Pricing: Free basic / paid tiers from £12.49 per month

Free trial: N/A

MTD compatible: No

Mobile app: Yes

UK specific: Yes

Visit Tide

Starling Bank

App-based sole trader bank account with no monthly fees. Includes invoicing feature and spending insights.

Best for: Sole traders wanting a free, modern business bank account

Pricing: Free

Free trial: N/A

MTD compatible: No

Mobile app: Yes

UK specific: Yes

Visit Starling Bank

Monzo Business

App-based business banking with free and paid tiers. Includes tax pots and MTD filing tools.

Best for: Sole traders who want built-in tax saving features alongside banking

Pricing: Free basic / paid £9 per month

Free trial: N/A

MTD compatible: Yes (paid tier)

Mobile app: Yes

UK specific: Yes

Visit Monzo Business

Wise Business

Multi-currency business account. Ideal for freelancers with international clients.

Best for: Freelancers who invoice clients in other currencies

Pricing: Paid £50 one-off setup fee

Free trial: No

MTD compatible: No

Mobile app: Yes

UK specific: No

Visit Wise Business

For most UK sole traders, Starling or Monzo Business is the obvious starting point - both are free, quick to open and reliable. If you work with international clients, Wise Business is worth the setup fee. If you want invoicing and business tools bundled with your account, Tide is worth looking at. None of them require a credit check to open.

Last reviewed: June 2026