Compare Business Bank Accounts

You’re not legally required to have a business bank account if you’re self-employed or a sole trader but many people choose to, as it helps keep business and personal finances completely separate and easier to manage. 

On the one hand, it will be easier to separate personal and business transactions when it comes to filling in your tax return. However, you are unlikely to find a free business bank account, so you will need to factor in the cost of the monthly fees.

How much you can pay into your business bank account depends on the bank and the account you have with them, but almost all will have a set minimum and maximum balances. If you need to increase your balance you can often apply to your bank to do this.

Yes, although you may be charged a handling fee and sometimes a surcharge over and above the base currency exchange rate – and those charges will vary depending on the bank so you should check first. 

For international transactions you’ll need your bank’s Business Identifier Code (BIC) and your unique International Bank Account Number (IBAN), which come with every business bank account. 

Yes, although if you want more than one account you’ll have to apply for each separately. 

Although you can use your personal current account for business transactions if you are a sole trader, it is much better to keep your personal and work finances separate. You cannot use a personal current account if you are running a limited company. 

Having a business bank account will make it much easier when you come to fill in the tax return from HMRC, whether it is a self-assessment form because you are self-employed, or you are filing a company report.

It is better not to use your business bank account for personal items. Under HMRC tax rules, some business expenses can be offset again tax when you file your tax return.

By keeping your personal and business finances separate, you will be able to demonstrate that the spending in your business bank account is for work purposes only, and therefore qualifies for tax relief.

It’s possible to open a business account with bad credit but it may be difficult, especially if you’ve been declared bankrupt or had a County Court judgement (CCJ) against you in the last five years. 

Fraud and financial crime are happening more often, with fraudsters and scammer tactics getting more sophisticated by the day. A responsible bank account provider will have the security of your funds as their top priority, however there are also things you should do to protect yourself.