Business banking and money

Keep your business money separate, organised and protected. These guides explain the options in plain English. They are general information, not financial advice.

3D illustration of a bank card in front of a rising bar chart, with a piggy bank and a calculator

General information only, not financial advice. Grow & Guard is not authorised by the Financial Conduct Authority to give advice. Check details with the provider and consider independent advice before making financial decisions.

Business accounts

Comparison

Best business bank account for sole traders

Tide, Starling, Monzo, Revolut Business and Wise Business compared.

Versus

Tide vs Revolut Business

Which suits a UK sole trader: fees, plans, currencies and protection.

Saving, investing and staying safe

Guide

Stocks and shares ISA for beginners

How ISAs work, the £20,000 allowance and how to compare platform fees.

Do sole traders need a business bank account

Legally, sole traders in the UK can use a personal account for business, but many banks' personal account terms do not allow business use, and keeping business money separate makes bookkeeping, Self Assessment and Making Tax Digital far easier. Limited companies must have an account in the company's name. Our business account comparison starts with the free options.

What to compare in a business account

  • Monthly fee: several providers have free plans, with paid tiers adding features such as more free transfers or accounting integrations.
  • Protection: check whether your money is held by a UK bank covered by the Financial Services Compensation Scheme (FSCS), or held by an e-money firm under safeguarding rules, which is different.
  • Cash deposits: if customers pay you in cash, check where and how you can pay it in and what it costs.
  • Making Tax Digital: some accounts include tools for keeping digital records and sending quarterly updates to HMRC.
  • International payments: exchange rates and fees vary widely if you pay suppliers abroad.

Staying safe with money online

Before you deposit money with any financial firm, check it on the Financial Conduct Authority's register and warning list. Be wary of unexpected calls or messages asking you to move money, and always verify payment detail changes by phoning a number you already have.

Sole trader or limited company

As a sole trader, you and your business are legally the same, so you can choose any account whose terms allow business use. A limited company is a separate legal entity and needs an account in the company's name, which usually means the provider checks Companies House records and the directors' identities when you apply. Several of the providers in our sole trader comparison also offer accounts for limited companies.

Saving and investing basics

Once your business money is organised, many people look at putting spare personal money to work. A stocks and shares ISA lets you invest up to the annual allowance without paying UK tax on the gains or income. Our beginner's guide explains how ISAs work and what fees to compare. Investments can go down as well as up.

Free, impartial help

MoneyHelper, backed by the government, offers free guidance on money and pensions, and the Business Support Helpline can point you to official support for running a business. For advice on your personal circumstances, speak to a regulated financial adviser or an accountant.

Frequently asked questions

Is my money protected in a business account?
It depends on the provider. Money held by a UK-authorised bank is usually protected by the FSCS up to the current limit per eligible depositor. E-money firms safeguard customer funds instead, which is not the same as FSCS protection. Check each provider's website.
Do I need a business bank account as a sole trader?
It is not a legal requirement for sole traders, but many personal account terms do not allow business use and a separate account makes bookkeeping and tax much easier. Limited companies need a business account.