FREELANCER BUSINESS BANK ACCOUNTS
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Your one stop authority on business bank accounts for small businesses and SMEs
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Promoted Accounts – April 2024
Best Freelancer Bank Accounts
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Monthly Fee
£14.90- £14.90 + VAT per month
- or £149 + VAT a year if billed annually
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Card Purchases
Free -
Bank Transfers
50 free per month- Domestic: 50 free per month, then 20p thereafter
- International: 1 free per month, then £5 per SWIFT transaction (+1% currency conversion fee)
- Free direct debits
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Overdraft
-
Access Methods
App/Online- No cheque facilities
- Cash accepted via PayPoint (£300 per month free, then 1% commission fee)
Product Features
- Up to 5 debit card included (£3 per extra card) – 1% cashback on selected categories
- Personal payment link for accepting payments online (£200 per month free, then 1% commission fee)
- Instant invoice generator and savings pots facility (fees apply)
- Landlords / property investors get a free 12 month subscription to the National Residential Landlords Association (NRLA)
- FastTrack to Credit – Boost your credit score and get access to credit after 3 months activity
Eligibility Criteria
- Must be a Sole Trader, Director of a Limited Company (and listed on Companies House), or a Partner in a Limited Liability Partnership
- Business must be located within the UK and you also need to have a UK residential address
- Not available to charities
ANNA Business comes with invoice generator tools, HMRC recognized Tax calculator and filing. Automate your bookkeeping with ANNA.
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Monthly Fee
£49.99 -
Card Purchases
Free -
Bank Transfers
FreeUnlimited free bank transfers -
Overdraft
-
Access Methods
App/Online- No cheque facilities
- Cash deposits via Post Office (0.5% fee, minimum £2.50) and PayPoint (3% fee)
Product Features
- Create and send invoices for free
- 3 free expense cards included
- 0.5% cashback on Tide card spend (T&Cs apply)
Eligibility Criteria
- For registered business account: you must be registered with UK Companies House as a director of that company or partnership
- For sole trader account: you must be a UK based sole trader/freelancer
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
Dedicated team of account managers
3 FREE Expense Cards for co-workers
Unlimited transfers per month
3 FREE Expense Cards for co-workers
Unlimited transfers per month
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Monthly Fee
FreeNo monthly fee for first 3 months, then £18 thereafter -
Card Purchases
Free -
Bank Transfers
£0.30 -
Overdraft
-
Access Methods
AppNo cheque facilities
Cash paid in via Post Office (0.5% fee – £2 minimum) and PayPoint (3% fee)
Product Features
- Monthly subscription fees that go up and down in line with your business performance
- Rated ‘Excellent’ based on over 2,000 reviews on Trustpilot
- Built-in accounting software with receipt capture and live business insights
Eligibility Criteria
- Available to sole traders and limited companies
- You must be 18+ and a UK resident
- Unlimited monthly deposits
Pay no subscription fees during your trial. Other transaction charges may apply.
-
Monthly Fee
FreeNo monthly fee for first 3 months, then £9 thereafter -
Card Purchases
Free -
Bank Transfers
£0.30 -
Overdraft
-
Access Methods
AppNo cheque facilities
Cash paid in via Post Office (0.5% fee – £2 minimum) and PayPoint (3% fee)
Product Features
- Monthly subscription fees that go up and down in line with your business performance
- Rated ‘Excellent’ based on over 2,000 reviews on Trustpilot
- Built-in accounting software with receipt capture and live business insights
Eligibility Criteria
- Must be a UK resident, at least 18 years old and running a small business (Sole Trader/Director of a limited company)
- If your maximum monthly deposit is exceeded, then your account will automatically upgrade to the appropriate subscription plan. You will not be able to downgrade from this plan.
- £7,500 maximum monthly deposit
Pay no subscription fees during your trial. Other transaction charges may apply.
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Monthly Fee
£12.50Plus one-off £55 application fee -
Card Purchases
Free -
Bank Transfers
From 30p- Direct Debits: 30p
- Faster Payments (next day online): 30p
- Faster Payments (instant online): £7.50
- CHAPS: £30
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Overdraft
-
Access Methods
App/OnlinePay in cash and cheques via Barclays branches
Product Features
- No credit checks or signatures required
- Up to 4 additional cards for business use
- UK-based customer support.
- International payments in a range of currencies
Eligibility Criteria
- Available to Limited Companies, Sole Traders and Partnerships
- Your business must be registered in the UK and have an annual turnover of less than £2m
- You must be 18+ and a UK resident. Card One Money need to be able to verify your identity & residency.
- Card One Money is no covered by the Financial Services Compensation Scheme. See product FAQs for more info
Open an account on the same day you apply with no credit checks.
Show More Products From Card One MoneyShow Fewer Products From Card One Money
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Monthly Fee
FreeNo monthly fee for first 3 months, £3 per month thereafter -
Card Purchases
Free -
Bank Transfers
30p -
Overdraft
-
Access Methods
AppNo cheque facilities.
Cash paid in via Post Office (0.5% fee – £2 minimum) and PayPoint (3% fee)
Product Features
- Monthly subscription fees that go up and down in line with your business performance
- Rated ‘Excellent’ based on over 2,000 reviews on Trustpilot
- Built-in accounting software with receipt capture and live business insights
Eligibility Criteria
- Available to sole traders and limited companies
- You must be 18+ and a UK resident
- £750 maximum monthly deposit
Pay no subscription fees during your trial. Other transaction charges may apply.
Show More Products From Counting UpShow Fewer Products From Counting Up
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Monthly Fee
Free -
Card Purchases
Free -
Bank Transfers
FreeSWIFT payments vary £10-£20 -
Overdraft
-
Access Methods
App/Online
Product Features
- Open domestic and foreign currency accounts with local bank details around the world with no monthly fees within minutes.
- Make international transfers to 150+ countries – save up to 80% on FX fees, app. 70% of funds arrive within a few hours / same day
- Accept payments worldwide via 160+ payment methods – no coding required
- Issue multi currency corporate cards
- Integrates with platforms like Xero, Amazon, Shopify, WooCommerce & more
- Automate your domestic and international bill pay workflows
Eligibility Criteria
- You must be at least 18 years old
- Be a sole trader, partner in a partnership, or company
- Your business is registered in the UK. More markets are available with different Airwallex entities. Details can be found on the Airwallex website.
*10% cashback on your first $1,000 USD equivalent in eligible international card spend.
Show More Products From AirwallexShow Fewer Products From Airwallex
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Monthly Fee
£49.90
£49.90 + VAT per month
Or £499 a year +VAT if billed annually
-
Card Purchases
Free -
Bank Transfers
From free- Domestic: unlimited free transfers
- International: 4 free SWIFT payments per month, then £5 per payment
-
Overdraft
-
Access Methods
App/Online- No cheque facilities
- Cash accepted via PayPoint with no fees
Product Features
- Unlimited free debit cards – 1% cashback on selected categories
- Personal payment link for accepting payments online with no fees
- Instant invoice generator and savings pots facility
- Landlords / property investors get a free 12 month subscription to the National Residential Landlords Association (NRLA)
- FastTrack to Credit – Boost your credit score and get access to credit after 3 months activity
Eligibility Criteria
- Must be a Sole Trader, Director of a Limited Company (and listed on Companies House), or a Partner in a Limited Liability Partnership
- Business must be located within the UK and you also need to have a UK residential address
- Not available to charities
ANNA Business comes with invoice generator tools, HMRC recognized Tax calculator and filing. Automate your bookkeeping with ANNA.
-
Monthly Fee
Free -
Card Purchases
Free -
Bank Transfers
From 20p- Domestic: 20p per bank transfer
- International: £5 per SWIFT transaction (+1% currency conversion fee)
- Free direct debits
-
Overdraft
-
Access Methods
App/Online- No cheque facilities
- Cash accepted via PayPoint (1% commission fee)
Product Features
- 1 debit card included (£3 per extra card) – 1% cashback on selected categories
- Personal payment link for accepting payments online (1% commission)
- Instant invoice generator and savings pots facility (fees apply)
- Landlords / property investors get a free 12 month subscription to the National Residential Landlords Association (NRLA)
- FastTrack to Credit – Boost your credit score and get access to credit after 3 months activity
Eligibility Criteria
- Must be a Sole Trader, Director of a Limited Company (and listed on Companies House), or a Partner in a Limited Liability Partnership
- Business must be located within the UK and you also need to have a UK residential address
- Not available to charities
ANNA Business comes with invoice generator tools, HMRC recognized Tax calculator and filing. Automate your bookkeeping with ANNA.
Show More Products From Anna MoneyShow Fewer Products From Anna Money
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Monthly Fee
FreePlus a one-off card issue fee of £9.95 -
Card Purchases
Free -
Bank Transfers
3 free per month3 free per month, then 30p thereafter -
Overdraft
-
Access Methods
App/Online- No cheque facilities
- Cash paid in via Post Office (0.5% fee)
Product Features
- 24/7 app and online account facilities
- FSCS protection – up to £85,000
- UK-based customer services team
- Invoicing tools that allow you to create and send invoices easily
Eligibility Criteria
- Available to UK registered companies or UK-based sole traders
- Application made by UK Director
- UK Director 18 years old plus
Show More Products From CashplusShow Fewer Products From Cashplus
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Monthly Fee
Free -
Card Purchases
Free -
Bank Transfers
20p -
Overdraft
-
Access Methods
App/Online- No cheque facilities
- Cash deposits via Post Office (0.5% fee, minimum £2.50) and PayPoint (3% fee)
Product Features
- Create and send invoices for free
- Multi-business – hold up to 5 business accounts
- Automated 30-day cash flow forecasts
Eligibility Criteria
- For registered business account: you must be registered with UK Companies House as a director of that company or partnership
- For sole trader account: you must be a UK based sole trader/freelancer
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
* Spend £100 within 30 days of opening an account to qualify for cashback.
Earn up to 4.33% AER (variable) with the Tide Instant Saver Account (interest paid monthly).
Award-winning business account
Earn up to 4.33% AER (variable) with the Tide Instant Saver Account (interest paid monthly).
Award-winning business account
Show More Products From TideShow Fewer Products From Tide
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Monthly Fee
£9.99 -
Card Purchases
Free -
Bank Transfers
20 free per month20 free per month, then 20p per transfer -
Overdraft
-
Access Methods
App/Online- No cheque facilities
- Cash deposits via Post Office (0.5% fee, minimum £2.50) and PayPoint (3% fee)
Product Features
- Create and send invoices for free
- Multi-business – hold up to 5 business accounts
- 1 free expense card included
Eligibility Criteria
- For registered business account: you must be registered with UK Companies House as a director of that company or partnership
- For sole trader account: you must be a UK based sole trader/freelancer
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
-
Monthly Fee
Free -
Card Purchases
Free -
Bank Transfers
5 free per month- 5 free local transfers per month, then 20p thereafter
- International transfers: £5
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Overdraft
-
Access Methods
App/OnlineNo cash or cheque facilities
Product Features
- Multi-currency accounts – recieve payments and exchange in 25+ currencies
- Control and monitor team spending with multiple debit and virtual cards, manage permissions and levels of access and more
- Various payment facilities including Tap to Pay on iPhone (fees apply)
- International payments – Send and receive money from 200 countries
Eligibility Criteria
- Available for limited companies, PLCs, LLPs, Partnerships & unlimited companies
- Currently available for companies registered in and with a physical presence within the European Economic Area (EEA), Switzerland, UK and US
International payments – Send and receive money from 200 countries.
Exchange money in 30+ currencies at interbank rates
Exchange money in 30+ currencies at interbank rates
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Refine Your Search
- Freelancer Bank Accounts
- Best Business Bank Accounts
- Free Business Bank Accounts
- Joint Business Bank Accounts
- Small Business Bank Accounts
- Sole Trader Business Bank Accounts
- Multi Director Access Business Accounts
- No Credit Check Bank Accounts
- Switcher Business Bank Accounts
- Online Business Bank Accounts
- Bad Credit Business Bank Accounts
- Corporate Business Bank Accounts
- Self Employed Business Bank Accounts
- Start Up Business Bank Accounts
- International Business Bank Accounts
How to compare business bank accounts…
Step One
Understand your requirements
How you do business will effect the type of account you need. How many transactions will you have each month? Do you need to pay in cash? Do you need a local branch?
Step Two
Check eligibility
Most providers have a range of business accounts to suit different types of businesses. Check the eligibility of each account to make sure if suited to your business.
Step Three
Compare the latest deals and offer
There are numerous offers and deals to attract new customers which can be compared with our handy tool above. Always consider the cost of the account once the free period ends
Business Bank Accounts for Freelancers
The rise of the gig economy has transformed the working landscape, leading to a surge in the number of freelancers across diverse sectors in the UK. While freelancing offers flexibility and autonomy, it also brings its set of challenges, particularly in financial management. Here’s a guide to help freelancers in the UK navigate the world of business bank accounts.
Why Consider a Business Bank Account?
While freelancers aren’t legally required to have a separate business account, it’s highly recommended. Here’s why:
- Professionalism: Receiving payments in a business account (even under your name) can appear more professional to clients than personal accounts.
- Clear Financial Demarcation: Separate accounts make it easier to differentiate between personal and business expenses, simplifying accounting and tax processes.
- Enhanced Financial Tools: Business accounts often come with tailored features, like invoicing, that can be valuable to freelancers.
Key Features to Look For
- Low Fees: Especially for freelancers just starting, low monthly fees (or none) can be a boon.
- Online Banking: The ability to manage finances, pay bills, and send invoices online is paramount.
- Integration: Look for accounts that can be integrated with accounting or invoicing software you use.
- Overdrafts and Loans: While not essential, it’s good to have an account with options for financial flexibility should you need it.
Setting Up the Account
Setting up a business bank account as a freelancer is relatively straightforward. Most banks will require:
- Proof of identity and address.
- Details of your freelancing services.
- Any business registration details if you’re operating under a business name.
The Tax Implication
Having a clear division between personal and business finances will significantly streamline your tax return process. It’s easier to calculate your income, deductions, and VAT (if applicable). Additionally, if HM Revenue & Customs (HMRC) ever wishes to inspect your records, having a distinct account will make the process less intrusive and more efficient.
Potential Challenges
- Fees: Some business accounts come with service fees, transaction charges, or both. Ensure you’re clear about these to avoid unexpected costs. Our article on understanding business banking fees can help you avoid confusion.
- Minimum Balance Requirements: Some banks may require a minimum balance, so choose an account that aligns with your cash flow.
Choosing the Right Bank
- Specialised Accounts: Some banks offer accounts tailored specifically for freelancers or sole traders, with features aligned to their needs.
- Bank Reputation: A bank with a robust reputation ensures reliability and is often accompanied by better customer service.
- Additional Services: Look for banks that offer complementary services like business advice, networking events, or access to financial advisors.
Online vs. Traditional Banks
With the rise of digital-only banks, freelancers now have a broader range of choices. Online banks often offer competitive features at lower costs, but they lack physical branches. Weigh the pros and cons based on your preference and needs.
Freelancing in the UK presents a world of opportunities, but it also requires meticulous financial management. While a business bank account isn’t a legal necessity, its benefits far outweigh the effort of setting one up. With clear financial demarcation, streamlined tax processes, and access to tailored banking features, such an account can become a freelancer’s trusted ally. Whether you’re a seasoned freelancer or just embarking on your solo journey, consider diving into the world of business banking to set a solid foundation for your financial future.
Freelancer Business Account FAQs
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Do I Need a Business Bank Account as a Freelancer?
While not legally required for sole traders, a business bank account is highly recommended. It helps separate personal and business finances, simplifies accounting and tax filing, enhances professionalism when dealing with clients, and can be beneficial for building a credit history for your business.
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What are the Benefits of a Business Bank Account Over a Personal Account?
A business bank account offers features tailored to business needs such as higher transaction limits, overdraft facilities, business lending options, and integration with accounting software. It also provides a clearer financial audit trail and can help in establishing credibility with clients and vendors.
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What Documents are Required to Open a Business Bank Account as a Freelancer?
Typically, you’ll need proof of identity (such as a passport or driver’s license), proof of address, and details of your business (including your business name and address). Some banks may require additional documents like your Unique Taxpayer Reference (UTR) number, business plan, or evidence of business activities.
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How Do I Choose the Right Bank and Account for My Freelancing Business?
Consider your specific business needs, such as the nature of your transactions, the need for physical banking services vs. online services, integration with existing accounting software, and potential growth or expansion. Compare the fees, features, and customer service ratings of various banks. It’s also wise to consider any additional services that might be beneficial, such as business advice or networking opportunities.