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Open a Business Bank Account
Having a dedicated business bank account makes managing your finances much simpler and more professional. While it is not legally required for sole traders, separating your business and personal money keeps your cash flow clear, helps you stay on top of income and expenses, and removes stress at bookkeeping and tax time.
A separate account also shows clients and suppliers that you run a serious and organised business. It sets you up for smooth growth if you ever need a loan, apply for credit, or decide to expand.
Comparing Your Options
When choosing a business bank account, think about what matters most:
Low fees or free banking
Easy online and mobile banking
Integration with your accounting software
Extras such as invoicing tools, savings sub-accounts, or tax pots
Here is a simple comparison:
Traditional Banks | Online providers | |
|---|---|---|
Examples | Barclays, HSBC, NatWest, Lloyds | Tide, Starling Bank, Monzo Business |
Pros | - In-branch support if you prefer face-to-face service | - Quick and easy account setup |
Cons | - Often higher monthly fees | - No in-branch service |
Extra Considerations | - Good option if you want to build a long-term relationship for larger financing | - Great for freelancers and small businesses wanting flexibility |
We recommend opening a business account with Monzo for its handy Tax Pot feature. You can preset a percentage of your income to be automatically set aside in a separate pot, so when self-assessment time comes around, you’ll have peace of mind knowing your tax money is already taken care of.