Monzo Business

Monzo Business is a fully licensed UK bank account with a free tier that includes receipt capture and a free HMRC-recognised MTD for Income Tax tool. Invoicing and accounting integrations sit on the paid Pro plan, from £9 a month.

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At a glance

Monzo Business is a fully licensed UK bank, so eligible deposits are FSCS-protected up to £120,000. The free Lite tier covers the essentials, including receipt capture and free HMRC-recognised MTD for Income Tax filing, while invoicing, Tax Pots and accounting software integrations sit on the paid Pro tier.

Free

£120,000

FSCS protection

Lite tier

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What is Monzo Business?

Monzo Business is the business banking arm of Monzo Bank Limited, a fully licensed UK bank regulated by the FCA and PRA. That licensed status matters: eligible deposits are protected by the FSCS up to £120,000, the same statutory protection as any UK high street bank. It’s only available to sole traders or limited company directors, not partnerships or LLPs.

Is Monzo Business free?

There’s a genuinely free Lite tier, plus two paid tiers: Pro at £9 a month (first month free) and Team from £25 a month. Lite covers a full UK business current account, free instant UK transfers, card payments, receipt capture and free HMRC-recognised MTD for Income Tax filing. The features most sole traders associate with “proper” bookkeeping - invoicing, Tax Pots, and bank feed integrations with Xero, FreeAgent, Sage and QuickBooks - are Pro-tier only.

Key features

Free, HMRC-recognised MTD for Income Tax filing (Lite and up)
Digital receipt capture (Lite and up)
Tax Pots, to ring-fence income for tax (Pro and Team)
Invoicing (Pro and Team)
Bank feeds with Xero, FreeAgent, Sage and QuickBooks (Pro and Team)
Savings Pots, 1.30% AER variable, instant access (all tiers)

Pricing

Monzo Business has three UK plans. Most sole traders will start on Lite or Pro.

Lite - £0/month

The essentials, free:

Full UK business current account
Free instant UK transfers and card payments
Digital receipt capture
Free MTD for Income Tax filing
Savings Pots

Pro - £9/month (first month free)

Adds invoicing and accounting integrations:

Everything in Lite, plus
Invoicing
Tax Pots, to ring-fence income for tax
Bank feeds with Xero, FreeAgent, Sage and QuickBooks
Custom categories and auto-exports

Team - from £25/month

Aimed at businesses managing vendors, inventory, or working across currencies - likely more than most sole traders need, but worth knowing about if you’re growing:

Everything in Pro, plus
Staff expense cards
Bulk payments and payment approvals
Multi-user team access

Pros and cons

Pros:

Fully licensed UK bank, FSCS protection up to £120,000
Genuinely free Lite tier, including MTD for Income Tax filing
Receipt capture and free instant UK transfers on the free tier
Highly-rated app, 24/7 in-app support
Savings Pots pay a competitive variable rate, instant access

Cons:

Invoicing, Tax Pots and accounting integrations sit behind the £9/month Pro tier
No branches or phone banking, app-only
Cash handling is limited and charged, not free
Not available to partnerships or LLPs
Fined £21.1 million by the FCA in 2025 for historic (2018-2020) anti-financial-crime failings

Who is Monzo Business best for?

Monzo Business is a solid, genuinely free option if you want a fully licensed UK bank account with basic receipt capture and free MTD for Income Tax filing. If you also want invoicing and a bank feed into accounting software like Xero or QuickBooks, budget for the £9-a-month Pro tier, since those features aren’t included on the free plan. It’s not available to partnerships or LLPs, so check eligibility before applying.

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Frequently asked questions

Is Monzo Business actually a bank, and is my money protected?

Yes, Monzo Business is run by Monzo Bank Limited, a fully licensed UK bank regulated by the FCA and PRA. Eligible deposits are FSCS-protected up to £120,000.

Is Monzo Business free for a sole trader?

The Lite tier is free, with no monthly fee, and includes receipt capture and free MTD for Income Tax filing. Invoicing, Tax Pots and accounting software integrations require the £9-a-month Pro tier.

Can I submit my MTD for Income Tax updates through Monzo Business for free?

Yes, the MTD filing tool itself is free on the Lite tier and is HMRC-recognised. What you pay £9 a month for on Pro is the surrounding automation, like Tax Pots and accounting software integrations, not the filing capability itself.

Does Monzo Business connect to Xero, QuickBooks or FreeAgent?

Yes, but only on the paid Pro tier (£9/month) or above - the free Lite tier doesn’t include accounting software integrations.

Can partnerships or LLPs open a Monzo Business account?

No, Monzo Business is only available to sole traders or limited company directors.

Compare accounting software for sole traders

Monzo Business is one option among several worth comparing. Browse the full Business Banking directory to compare it against Starling, Tide, Wise, Revolut Pro and Mettle.

Prices and offers correct at time of publication. Always check the website for current pricing and promotional terms before signing up.