Best Business Bank Accounts for UK Sole Traders in 2026

Choosing a business bank account used to mean visiting your local high street branch and hoping for the best. In 2026, UK sole traders have more options than ever, with digital-first challengers offering free accounts packed with features that legacy banks charge a premium for. But more choice means more confusion.

We have compared the most popular business bank accounts available to UK sole traders, looking at monthly fees, transaction limits, features, integrations, and real user feedback. Whether you need a simple free account or a feature-rich platform that handles invoicing, tax, and multi-currency payments, this guide will help you find the right fit.

What We Looked For

Every account in this guide was evaluated on the following criteria:

• Monthly fees and hidden costs (transaction fees, cash deposit charges, card fees)
• Free UK bank transfers (Faster Payments and Direct Debits)
• Accounting software integration (Xero, QuickBooks, FreeAgent)
• Invoicing tools (built-in or through integrations)
• Mobile app quality and reliability
• Customer support accessibility
• Additional features (tax pots, multi-currency, cashback)

Quick Comparison Table

Account	Monthly Fee	Free UK Transfers	Invoicing	Accounting Integration	Cash Deposits	Best For
Tide Free	Free	Unlimited	Yes	Xero, QuickBooks, FreeAgent, Sage	PayPoint (1%)	All-round free option
Starling	Free	Unlimited	No	Xero, QuickBooks, FreeAgent	Post Office (free up to 1,000/mo)	Sole traders wanting a polished app
Monzo Business	From 0	Unlimited	Yes	Xero, QuickBooks, FreeAgent	PayPoint (1%)	Cashback and tax pots
Revolut Business	From free	Varies by plan	Yes	Xero, QuickBooks	N/A	Multi-currency and international
ANNA Money	From free	5 free/mo (free), unlimited (paid)	Yes	Xero, FreeAgent	N/A	Auto-tax calculations
Mettle	Free	Unlimited	Yes	FreeAgent (free)	N/A	Free FreeAgent access
Chase Business	Free	Unlimited	No	Xero, QuickBooks, FreeAgent	N/A	Cashback on card spending
Amaiz	From 9.99/mo	Unlimited	Yes	Xero	N/A	AI-powered expense tracking
Wise Business	Free (pay per use)	From 0.35 per transfer	No	Xero, QuickBooks	N/A	International payments
Countingup	From 5.50/mo	Unlimited	Yes	Built-in accounting	N/A	Combined banking and accounting

Detailed Reviews

Tide - Best Free All-Rounder

Monthly fee: Free (Plus from 9.99/mo, Cashback from 49.99/mo)

Tide has established itself as one of the most popular business accounts for UK sole traders, and for good reason. The free plan includes unlimited UK bank transfers, a business debit card, and built-in invoicing tools that let you create, send, and track invoices directly from the app.

The invoicing feature is genuinely useful. You can customise invoices with your logo, set payment terms, and send automatic reminders to late-paying clients. The app also connects to all major accounting platforms including Xero, QuickBooks, FreeAgent, and Sage, making bank reconciliation straightforward.

Cash deposits are available through the PayPoint network at a fee of one percent per deposit. This is fairly standard among digital banks but worth noting if you handle significant cash volumes.

Pros:

• Completely free with no minimum turnover requirement
• Excellent invoicing tools included at no cost
• Wide range of accounting integrations
• Expense management and receipt capture
• Over 500,000 UK businesses use it, so it is well-established

Cons:

• Cash deposit fees of one percent can add up
• Customer support can be slow during peak times
• No interest earned on balances
• Free plan has limited phone support

Starling Bank - Best Mobile App Experience

Monthly fee: Free

Starling consistently wins awards for its mobile app, and the business account lives up to that reputation. The interface is clean, fast, and intuitive, with real-time notifications for every transaction. If you value a polished digital banking experience, Starling is hard to beat.

One of Starling’s standout features is free cash deposits at the Post Office, up to 1,000 pounds per month. Beyond that threshold, a 0.7 percent fee applies. This makes Starling particularly attractive for sole traders who handle cash, such as market stall operators, tradespeople, or anyone who occasionally receives cash payments.

Starling also offers “Spaces,” which are ring-fenced savings pots within your account. Many sole traders use these to set aside money for tax bills, VAT, or specific business goals. The account integrates with Xero, QuickBooks, and FreeAgent through Open Banking.

Pros:

• Genuinely free with no catches
• Excellent mobile app with real-time notifications
• Free cash deposits up to 1,000 pounds per month at the Post Office
• Savings spaces for tax and other ring-fenced funds
• UK-based customer support available seven days a week
• FCA-regulated and FSCS-protected up to 85,000 pounds

Cons:

• No built-in invoicing tools
• No cashback on spending
• Business toolkit is somewhat basic compared to Tide or ANNA
• Limited international payment features

Monzo Business - Best for Cashback

Monthly fee: Free (Lite), 7 pounds/mo (Pro)

Monzo’s personal banking app has millions of users in the UK, and the business account brings that same user-friendly experience to sole traders. The free Lite plan includes basic business banking features, while the Pro plan at 7 pounds per month adds invoicing, one percent cashback on card purchases, and priority support.

The one percent cashback on the Pro plan is worth doing the maths on. If you spend 1,000 pounds per month on your business card, that is 120 pounds per year back in your pocket, which more than covers the 84 pounds annual fee. For sole traders with moderate card spending, the Pro plan can effectively pay for itself.

Monzo also offers tax pots where you can automatically sweep a percentage of incoming payments into a separate pot for your tax bill. This is a genuinely helpful feature for sole traders who struggle with tax discipline.

Pros:

• Free plan available for basic banking
• One percent cashback on Pro plan is genuinely valuable
• Tax pots with automatic percentage sweeps
• Familiar, user-friendly app if you already use Monzo personally
• Integrations with Xero, QuickBooks, and FreeAgent

Cons:

• Best features locked behind the Pro plan at 7 pounds per month
• Cash deposit fees of one percent via PayPoint
• Invoicing only available on the paid plan
• Relatively newer business offering compared to Tide or Starling

Revolut Business - Best for Multi-Currency

Monthly fee: Free (Basic), 10 pounds/mo (Grow), 25 pounds/mo (Scale)

If you work with international clients or pay suppliers in foreign currencies, Revolut Business deserves serious consideration. The platform supports over 25 currencies, allowing you to hold, send, and receive money in multiple currencies with competitive exchange rates.

The free plan includes five free international transfers per month at the interbank exchange rate (during market hours), which is dramatically cheaper than traditional banks. Paid plans increase the number of free transfers and add features like recurring payments, team member access, and API integrations.

Revolut also offers invoicing, expense management, and integrations with Xero and QuickBooks. The app is feature-rich, though some users find it slightly overwhelming compared to simpler alternatives like Starling.

Pros:

• Excellent multi-currency support with competitive exchange rates
• Free international transfers on all plans (limits vary)
• Local account details in multiple countries (EUR, USD, etc.)
• Feature-rich platform with invoicing and expense tracking
• Virtual and physical business cards

Cons:

• Exchange rate markup applies outside market hours and beyond monthly free limits
• No cash deposit facilities
• Customer support can be inconsistent
• The sheer number of features can feel overwhelming for simple businesses
• Not a traditional UK bank (e-money licence, though holds UK banking licence for deposits)

ANNA Money - Best for Tax Automation

Monthly fee: Free (limited), 11 pounds/mo (Small Business), 19.90 pounds/mo (Business)

ANNA stands for “Absolutely No-Nonsense Admin,” and its key selling point is automating the financial admin that sole traders hate. The standout feature is automatic tax calculations: ANNA estimates your Corporation Tax or Income Tax liability based on your transactions and sets aside the appropriate amount in a tax pot.

The invoicing tools are also strong. ANNA can chase overdue invoices on your behalf and even send polite automated reminders to late payers. For sole traders who find invoicing admin tedious, this is a genuine time-saver.

The free plan is limited to five free transfers per month, which is restrictive for most active businesses. The paid plans remove this limit and add features like company formation services, VAT registration, and priority support.

Pros:

• Automatic tax calculation and ring-fencing
• Excellent invoicing with automated payment reminders
• Company formation and business registration services
• Receipt scanning and categorisation
• Integration with Xero and FreeAgent

Cons:

• Free plan is very limited (only five transfers per month)
• Paid plans are more expensive than some alternatives
• Smaller user base means fewer community resources
• No cash deposit option
• Tax estimates are helpful but should not replace professional advice

Mettle - Best for Free Accounting Software

Monthly fee: Free

Mettle, backed by NatWest, offers a completely free business account with one extraordinary perk: free access to FreeAgent accounting software. FreeAgent normally costs 14.50 pounds per month when purchased directly, so this represents genuine savings of 174 pounds per year.

If you are a sole trader who needs both a business account and accounting software, Mettle plus FreeAgent is an incredibly cost-effective combination. FreeAgent handles invoicing, expense tracking, Self Assessment tax returns, and MTD-compatible quarterly submissions.

The banking side of Mettle is straightforward. You get a business debit card, unlimited UK transfers, and real-time notifications. It is not the most feature-rich account on its own, but combined with FreeAgent, it becomes a powerful and completely free business finance platform.

Pros:

• Completely free business account
• Free FreeAgent accounting software (normally 14.50 pounds per month)
• Backed by NatWest, a major UK bank
• Unlimited free UK transfers
• Simple, clean interface
• FSCS-protected

Cons:

• No built-in invoicing within the banking app itself (use FreeAgent instead)
• No cash deposit facilities
• Limited features compared to Tide or Revolut
• FreeAgent integration is the main draw; the account itself is basic
• No overdraft or credit facilities

Chase Business Account - Best for High Street Backing with Digital Convenience

Monthly fee: Free

Chase entered the UK market with its personal account and expanded into business banking with a free offering that includes one percent cashback on card spending for the first twelve months. For a bank backed by JPMorgan Chase, one of the world’s largest financial institutions, the proposition is surprisingly competitive with digital challengers.

The account includes unlimited free UK transfers, a business debit card, and integrations with Xero, QuickBooks, and FreeAgent. The app is clean and well-designed, though it currently lacks some of the advanced business tools found in Tide or Revolut.

Pros:

• Completely free with no monthly charges
• One percent cashback on card spending (introductory period)
• Backed by JPMorgan Chase
• Clean, modern app experience
• Integrations with major accounting platforms
• FSCS-protected

Cons:

• Newer to UK business banking, so features are still evolving
• No invoicing tools
• No cash deposit facilities
• Cashback rate may change after introductory period
• Limited international payment features

Amaiz - Best for AI-Powered Expense Management

Monthly fee: 9.99 pounds/mo (or 99 pounds/year)

Amaiz takes a different approach by using artificial intelligence to categorise expenses, predict cash flow, and automate admin tasks. The app learns your spending patterns over time and becomes increasingly accurate at sorting transactions into the correct tax categories.

This comes at a cost. At 9.99 pounds per month with no free plan, Amaiz is one of the pricier options. However, if you value AI-powered automation and hate manual bookkeeping, the time savings may justify the expense.

Pros:

• AI-powered expense categorisation improves over time
• Cash flow predictions and alerts
• Invoicing tools included
• Xero integration
• Useful for sole traders who dislike manual admin

Cons:

• No free plan, 9.99 pounds per month is steep for a sole trader account
• Smaller provider with less brand recognition
• Limited accounting integrations (Xero only)
• No cash deposit option
• Feature set may not justify the price for simpler businesses

Wise Business - Best for International Transfers

Monthly fee: Free (pay-per-use model)

Wise (formerly TransferWise) is not a traditional business bank account, but it offers a multi-currency account with local bank details in over ten currencies. If you regularly receive payments in US dollars, euros, or other currencies, Wise lets you hold those funds and convert them at the mid-market exchange rate with a small, transparent fee.

The account is free to open with no monthly charges. You pay only when you make transactions: UK transfers cost around 0.35 pounds each, and international transfers incur a small percentage fee that varies by currency (typically 0.3 to 0.6 percent).

For sole traders who work primarily with international clients, Wise can save hundreds or even thousands of pounds per year compared to traditional bank transfers.

Pros:

• Mid-market exchange rate with no hidden markup
• Local bank details in multiple currencies (GBP, EUR, USD, etc.)
• No monthly fees, pay only per transaction
• Transparent fee structure
• Integrates with Xero and QuickBooks

Cons:

• Per-transaction fees for UK payments (unlike free alternatives)
• Not a full business bank account (e-money institution)
• No cash deposit facilities
• No invoicing tools
• Not FSCS-protected (funds held under e-money regulations instead)

Countingup - Best Combined Banking and Accounting

Monthly fee: From 5.50 pounds/mo

Countingup merges a business current account with built-in accounting software, eliminating the need for a separate accounting platform. The app automatically categorises income and expenses, generates profit and loss reports, and can even estimate your tax bill.

For sole traders who want the simplest possible financial setup with no third-party integrations to manage, Countingup is a compelling option. You get banking and accounting in a single app, with Self Assessment tax return data available at the tap of a button.

Pros:

• Combined banking and accounting in one app
• Automatic transaction categorisation
• Tax estimates and Self Assessment support
• Receipt capture and matching
• Simple, all-in-one approach

Cons:

• Monthly fee with no free plan
• Not as powerful as dedicated accounting software like Xero or FreeAgent
• Limited to sole traders and small businesses
• No cash deposit facilities
• Fewer integrations with third-party tools

Which Account Is Right for You?

Best Free All-Rounder: Tide Free

If you want a free account that includes invoicing, expense management, and broad accounting integrations, Tide’s free plan is the strongest all-round option. It does everything most sole traders need without charging a penny.

Best for Cash Businesses: Starling Bank

If you regularly handle cash, Starling’s free Post Office deposits (up to 1,000 pounds per month) make it the obvious choice. No other digital bank matches this for cash-handling sole traders.

Best for Cashback: Monzo Business Pro

If you have moderate-to-high card spending, the one percent cashback on Monzo’s Pro plan can more than cover the monthly fee. Do the maths based on your typical monthly card spending to see if it makes sense.

Best for International Clients: Revolut Business or Wise Business

If you invoice in multiple currencies or receive international payments regularly, Revolut and Wise both offer dramatically better rates than traditional banks. Revolut is better if you want a full-featured business account; Wise is better if you want the lowest possible international transfer costs.

Best for Automated Tax Savings: ANNA Money

If staying on top of your tax bill is your biggest financial headache, ANNA’s automatic tax calculations and ring-fencing can provide genuine peace of mind.

Best for Free Accounting Software: Mettle

If you need accounting software and do not already have a subscription, Mettle’s free FreeAgent access saves you 174 pounds per year. This is the most cost-effective combination of banking and accounting available.

Best for Simplicity: Countingup

If the idea of connecting bank accounts to accounting software and managing multiple platforms fills you with dread, Countingup’s all-in-one approach removes that complexity entirely.

A Note on Switching

Do not overthink this decision. Most of these accounts are free or low-cost, and switching between them is straightforward. Many sole traders open a free account to get started and switch or upgrade as their needs become clearer. The most important thing is to have a separate business account in the first place, rather than agonising over which one is theoretically perfect.

Open the one that appeals most, use it for a few months, and reassess if it is not working for you. Your future self, hunched over a Self Assessment tax return at midnight, will thank you for having clean, separated business finances regardless of which provider you chose.