Starting a business is an exciting step, and one of the key things you need to do early on is set up a business bank account.
Whether you’re a sole trader or a limited company, keeping your business finances separate from your personal ones is a must.
Let’s chat about why a business bank account is so important and check out some great options available in the UK, both paid and free.
Why You Should Have a Business Bank Account
- Professionalism: A business bank account gives your business a professional image. It shows clients and suppliers you’re serious and ready to do business, making you look more credible and trustworthy.
- Simplified Accounting: Keeping your business and personal finances separate makes bookkeeping a breeze. It’s easier to track what comes in and goes out, and when tax time rolls around, your accountant will be much happier!
- Tax Compliance: Having all your business transactions in one place helps you stay on top of your tax obligations. It’s essential for keeping everything above board with HMRC and avoiding any unnecessary hassles.
- Access to Business Features: Business bank accounts often come with handy extras like invoicing, payment processing, and even business loans. These can be really useful as your business grows.
Paid Business Bank Accounts in the UK
- Barclays Business Account:
- Tailored options depending on your business size.
- Access to various business services, including lending.
- Monthly fees starting from £6.
- HSBC Business Banking:
- Flexible plans with online and in-branch services.
- 18 months of free banking for new businesses.
- Fees kick in after the free period, typically around £5-£6 per month.
- NatWest Business Banking:
- Offers support, funding, and business advice.
- Free banking for the first 24 months for startups.
- Fees start at £5 per month after the free period.
- Freeagent Accounting Software for FREE!
Free Business Bank Accounts in the UK
- Starling Bank:
- Completely digital, with no monthly fees.
- Includes a business debit card, mobile banking, and accounting software integration.
- No charges for UK payments or electronic transfers.
- Monzo Business:
- Free account option with a business debit card and a handy mobile app.
- Features include invoicing and budgeting tools.
- No monthly fees for the basic account.
- Tide:
- No monthly fees for the basic plan.
- Features like expense management and invoicing.
- Some charges apply for cash withdrawals and transfers.
Picking the Right Business Bank Account
When choosing a business bank account, think about:
- Fees and Charges: Check out the costs, including any monthly fees and transaction charges.
- Features and Benefits: Consider what you get, like overdrafts or accounting software.
- Accessibility: Whether you prefer online, mobile banking, or having the option to visit a branch.
Final Thoughts
Setting up a business bank account is a crucial step in getting your business finances sorted. It not only helps keep things organised but also gives you access to essential financial tools. Whether you go for a paid account with extra perks or a free option, make sure to pick one that fits your business needs.
If you’re unsure which account to choose or have any questions, just get in touch. We’re here to help you make the best financial choices for your business!