Business bank account FAQs: Monzo Business and UK accounts in general

Monzo Business is the business current account from Monzo Bank Limited, a UK bank authorised by the Prudential Regulation Authority and regulated by the FCA and the PRA. It runs mainly through the Monzo app, with a web app for payments, invoices and statements. There are three plans: Lite is free, Pro is £9 a month and Team is from £25 a month. Monzo says it has over one million business customers.

Monzo accepts sole traders and private limited companies (limited by shares). You must be 16 or over and UK based and UK tax resident only, and the business must earn mainly from trading. For a company, the person applying must be a director. Monzo does not accept partnerships, LLPs, PLCs, charities, CICs, companies limited by guarantee, trusts and funds. You can hold up to 3 businesses per person, and there is no Monzo personal account needed.

Yes. Monzo is a bank, so eligible deposits are protected by the Financial Services Compensation Scheme up to £120,000 per eligible depositor, and eligible small businesses are covered. This is different from e-money accounts, where your money is safeguarded rather than covered by the FSCS. Monzo Bank Limited is on the FCA register under FRN 730427.

Lite covers the core account, payments, card acceptance, savings pots and 24/7 support. Pro adds Tax Pots, invoicing, accounting integrations, virtual cards, connected accounts and custom categories. Team adds expense cards, payment approvals, bulk payments and a bigger team. Sole traders who just need somewhere to be paid often start on Lite. A limited company that wants Tax Pots and accounting sync usually needs Pro at least. There is no minimum term; downgrades refunded pro rata, so you can change later.

We are a private limited company and have been on Monzo Business for a few years. We chose Team mainly for the savings rate boost and for Tax Pots, which we use to set money aside automatically. We also find the app very app-first and natural to use, with a lot of useful features. That is our experience as one company; it is not a recommendation that everyone needs Team.

Tax Pots move a percentage of every incoming payment, moved automatically, so the money is set aside before you are tempted to spend it. They are only on Pro and Team, with up to 3 Tax Pots per account. A sole trader might use one for Income Tax; a limited company usually names its own, for example VAT and Corporation Tax. Direct Debits can be paid from a Tax Pot.

Yes, through Instant Access Savings Pots. Monzo advertises up to 3.25% AER (variable) on its savings page but shows 1.30% AER (variable) on its features page, and it does not publish the rate for each plan. Treat the higher figure as an "up to": your rate depends on your plan, so check the app before you move money.

Yes, on Pro and Team. Monzo syncs with Xero, FreeAgent, Sage and QuickBooks, and can auto-export to Google Sheets, Google Drive and OneDrive. Receipts and categories sync with Xero only. New Xero customers can also get 6 months' free Xero with Pro, 8 months with Team (new Xero customers, until 31 May 2027). Lite does not include accounting integrations.

Yes, at a PayPoint or a Post Office, but it costs £1 per deposit and there are monthly limits: £10,000 a month (limited companies) and £3,000 a month (sole traders). For a business that takes a lot of cash, an account with cheaper or free cash handling, often a high-street bank, may suit better.

Card spending abroad has no fee on card spending abroad. Sending money abroad is changing. The current fee is a fixed fee of up to £9 plus 0% to 1.8% (until 31 October 2026). From 1 November 2026 it is under £0.80 for most currencies, up to £11 in some cases, with a margin in the exchange rate (from 1 November 2026). Receiving euros and other currencies carries a 1% conversion fee on incoming euros and other currencies, capped at £1,000.

It is less clear than for sole traders. Monzo's overdraft page describes limited company overdrafts of £500 to £5,000 at a representative 35.9% EAR (variable), with an annual fee and a personal guarantee, but the same page also says Monzo does not offer overdrafts to limited companies. Loans for companies go through partner iwoca, through partner iwoca: £500 to £35,000 at a representative 33.1% APR. Check what is offered in the app before relying on it.

Not as such: the Monzo Business referral is a link, not a code, so there is nothing to type at sign-up. You open the link on the phone you will sign up on before you start, then download the app and apply. If you qualify and complete the steps, you and the person who referred you each get £50.

Only people who have never opened a Monzo account before. That includes a Monzo personal or joint account, which is the most common reason the reward is not paid. Within 30 days you must download the app, apply, add money and make a first card payment. The reward applies to any Monzo Business plan, including free Lite. Eligibility criteria apply, and Monzo still has to approve your account.

Monzo counts a card payment of any amount, online or in person (Apple Pay and Google Pay count). Its terms say ATM withdrawals, bank transfers and virtual-card payments do not count. The payment has to be made with your Monzo Business card within 30 days, after you have added money to the account. A small purchase is enough.

The usual reasons are having had a Monzo account before, not opening the referral link before starting, missing the 30 days window, or making a payment that does not count, such as a transfer or virtual-card payment. Monzo also limits each referrer to 3 rewards a month; above that, neither side is paid that month. We say on the referral page if we have reached it.

No. The reward is only paid when sign-up starts from a referral link, so going to monzo.com directly earns nothing for you and nothing for us. You are welcome to do that if you would rather not use a referral, and the information on this site is free either way. Our link is labelled as a referral link wherever it appears.

Only from the Monzo Business referral: when someone opens an account through our link and completes the steps, we each receive £50, up to Monzo's limit of 3 rewards a month. There are no adverts, no paid placements, no affiliate links to other providers and no data sales. The amount is the same whatever a page says, which is how we keep the reviews honest.

Legally, no: a sole trader can use a personal account. In practice most open a separate one, because mixing business and personal money makes bookkeeping and Self Assessment harder, and many personal account terms do not allow business use. A free business plan costs nothing and keeps income and expenses in one place.

Yes, in practice. A limited company is a separate legal person, so its money should be in an account in the company's name. Paying company income into a director's personal account mixes the two, creates director's loan account entries and makes the accounts much harder to prepare. Most banks' personal account terms also rule out company use.

App-based banks usually ask for photo ID (a passport or driving licence), a selfie or short video, your home address and basic business details. A limited company also needs its Companies House registration, and people with significant control are verified at sign-up. High-street banks may ask for more, such as proof of address documents or a business plan.

Often, yes. Many UK providers run a credit or identity search on the business and its directors when you apply. For a current account this is often a soft search that does not affect your credit score, but practice varies by provider, so read the application terms. Borrowing, such as an overdraft, normally involves a fuller check.

A full switch takes 7 working days via the Current Account Switch Service. It moves your balance, Direct Debits and standing orders and redirects payments sent to your old account. Recurring payments set up on your old debit card, and any payment details you have shared with customers on invoices or links, are worth updating yourself.

A bank holds deposits and those deposits are protected by the FSCS up to £120,000 per eligible depositor. An e-money institution does not take deposits; it must safeguard customers' money separately, but that money is not covered by the FSCS if the firm fails. Several popular business accounts are e-money accounts, so check before you choose.