Business bank accounts by business type
By Chris
The right business bank account depends less on league tables and more on what kind of business you run. Pick your business type below for the accounts that suit it, the costs that matter to you and the honest cases where our own pick is not the answer.
How to choose
Three questions narrow the field faster than any “best of” list.
What is your legal structure? Sole traders and private limited companies can open almost any UK business account. Partnerships, LLPs, charities and companies limited by guarantee have a shorter list, and some app-based accounts do not take them at all. Monzo Business, for example, accepts sole traders and private limited companies (limited by shares) only.
How do customers pay you? If money arrives by bank transfer, almost any account works and a free plan is often enough. If you take cash, the cost of paying it in becomes one of your biggest banking bills, and branch access starts to matter. If you take card payments, compare the card acceptance fees as carefully as the account fee.
Do you deal in other currencies? Receiving euros or dollars, or paying overseas suppliers, can cost far more than a monthly fee. Multi-currency accounts such as Wise and Revolut are often used alongside a UK bank for exactly this reason.
Once you know the answers, the page for your business type below sets out which accounts fit, with figures taken from each provider’s own pages. If you want to compare all the main accounts in one table instead, the best business bank accounts UK comparison does that, and the business bank account cost calculator estimates what each would cost you in a year.
By legal structure
The first thing any bank asks is how your business is set up, because it decides which accounts you can open at all and what the bank needs from you.
- Sole tradersBest business bank account for sole traders UKYou trade in your own name and file a Self Assessment return. Covers free plans, tax pots, Making Tax Digital for Income Tax and sole trader overdrafts.
- Limited companiesBest business bank account for a limited company UKYou are a director of a private limited company. Covers director and PSC checks, multiple users, Corporation Tax and VAT pots, accounting sync and lending.
- StartupsBest business bank account for startups and new companiesYou registered the business this month or are about to. Covers which providers accept you on day one, free periods at the big banks and what to set up first.
- Free accountsFree business bank accounts UK: which are really free?You want no monthly fee and need to know which costs still apply: cash deposits, foreign exchange, card acceptance and transfer limits.
By the kind of work you do
Two businesses with the same legal structure can need very different accounts. A designer paid by overseas clients and a plumber paid in cash do not share many priorities.
- FreelancersBest bank account for freelancers and the self-employed UKYou invoice clients for your time, sometimes from abroad. Covers keeping income separate, invoicing, tax pots and the cheapest ways to receive foreign currency.
- ContractorsBusiness bank account for contractors and limited company contractorsYou contract through your own limited company, often through agencies. Covers IR35, paying yourself, VAT and the accounts accountants tend to suggest.
- TradespeopleBusiness bank accounts for tradespeople: builders, plumbers and electriciansYou are a builder, plumber, electrician or similar. Covers cash and cheque deposits, card readers, CIS deductions and paying for materials on the card.
- Taxi & Uber driversBusiness bank account for taxi and Uber drivers UKYou drive for Uber, Bolt or a local firm. Covers platform payouts, cash fares, vehicle costs and whether a separate account is worth it.
- Etsy sellersBusiness bank account for Etsy sellers UK: do you need one?You sell through Etsy or a similar marketplace. Covers payout rules, HMRC’s trading allowance and accounts that suit small online shops.
- LandlordsBusiness bank accounts for landlords: do you need one, and which?You let property. Covers whether a separate account is needed, which business accounts accept rental income and how Making Tax Digital affects you.
Where Monzo Business fits
We run a small digital agency as a private limited company and have banked with Monzo Business for a few years, currently on the Team plan. That makes it the account we can describe first-hand, and it is the featured pick on most of these pages. It suits businesses that are paid mainly by bank transfer or card, want to run their banking from an app, and like having tax set aside automatically.
Lite is free, Pro is £9 a month and Team is from £25 a month. Tax Pots, invoicing and accounting sync come with Pro and Team. Sole traders and landlords also get free Making Tax Digital for Income Tax software, built on Sage, on every plan. The details are in the Lite vs Pro vs Team comparison, and the eligibility page covers who can open one.
If you open an account through our link, you and we each get £50, but only if you have never opened a Monzo account before and you download the app, apply, add money and make a first card payment within 30 days. The bonus checker tells you in five questions whether you qualify.
When to look elsewhere
Monzo Business is not the right account for everyone, and the business-type pages say so where it applies. The common cases:
- Partnerships, LLPs and charities. Monzo does not accept partnerships, LLPs, PLCs, charities, CICs, companies limited by guarantee, trusts and funds. Starling takes LLPs, and Barclays, HSBC and Santander take partnerships.
- Cash-heavy businesses. Monzo charges £1 per deposit at PayPoint or the Post Office, with monthly limits. A high-street bank with branches and deposit machines may suit a shop or market trader better. See Monzo Business cash deposits for the limits.
- Regular foreign currency. A multi-currency account is often cheaper for frequent international payments, used as a second account.
- Anyone who has had a Monzo account before. You can still open Monzo Business, but the referral reward will not pay, so compare other providers’ offers first.
Frequently asked questions
Which business bank account is best for my type of business?
It depends on three things more than any ranking: your legal structure, how customers pay you and whether you handle cash or foreign currency. A sole trader paid by bank transfer has dozens of good free options. A cash-heavy shop or a partnership has fewer, and an app-only account may not suit. Start with the page for your business type above.
Can a partnership or LLP use these accounts?
Not all of them. Monzo Business accepts only sole traders and private limited companies by shares. Starling accepts LLPs but not general partnerships, while Barclays, HSBC and Santander accept partnerships. If you are a partnership, LLP or charity, check the eligibility line of each account before you apply.
Do I need a different account if I am a freelancer rather than a sole trader?
Usually not. Freelancer describes how you work, not your legal structure. Most UK freelancers are sole traders and some run a limited company, so the account rules follow that structure. The freelancer page focuses on what matters for client work: invoicing, tax pots and getting paid from abroad.
Is a free business bank account good enough?
For many small businesses, yes. Free plans from Monzo, Starling, Mettle and others cover UK transfers, a card and an app. The costs that remain are usually cash deposits, card spending or payments abroad, and taking card payments from customers. The free accounts page lists those charges side by side.
Why does this site feature Monzo Business?
We run a small limited company that has banked with Monzo Business for a few years, so it is the account we know first-hand, and its referral is the site’s only income. Every business-type page still says when another account suits a reader better, and figures for every account are sourced and dated.
Sources
- Monzo Business eligibility
- Monzo help: which businesses are eligible
- Monzo Business plans and pricing
- Monzo Business account fee information (source last updated Invalid Date)
- Monzo Business Making Tax Digital
- Starling Business: deposit protection
- Starling Business: eligibility
- Starling Business: plans
- Starling Business: card acceptance
- Starling Business: team cards
- Starling Business: offer terms
- Barclays Business: deposit protection
- Barclays Business: fees
- Barclays Business: accounting
- HSBC UK Small Business Banking: deposit protection
- HSBC UK Small Business Banking: eligibility
- HSBC UK Small Business Banking: fees
- Santander Business Current Account Classic: deposit protection
- Santander Business Current Account Classic: fees
- Santander Business Current Account Classic: fees
- Santander Business Current Account Classic: international payments
Figures last checked 9 October 2026. If something has changed, tell us and we will correct it.
Related reading
- Best accountsThe best UK business bank accounts compared on fees, FSCS protection, features and eligibility, with a clear view of who should choose something other than our pick.
- GuidesPractical guides to business banking in the UK: whether you need an account, what you need to open one, switching, FSCS, Making Tax Digital and paying yourself.
- Cost calculatorEnter your monthly transfers, cash deposits and international payments to compare the annual cost of Monzo, Starling, Tide and the high-street banks.
- EligibilityMonzo Business eligibility in plain English: sole traders and limited companies yes, partnerships, LLPs and charities no, plus the residency and trading rules.