Do Freelancers Need a Business Bank Account in the UK?
If you’re self-employed in the UK, a business bank account isn’t legally required — but it might still be a smart move.
Let’s break down when it helps, when you can skip it, and how to choose one that fits.
Do Sole Traders Legally Need One?
No — UK sole traders can legally use their personal account for freelance income and expenses.
But separating business and personal finances can make your life easier when it comes to:
- Invoicing clients
- Tracking expenses
- Submitting your tax return
- Looking more professional
Why Use a Separate Account Anyway?
A dedicated freelancer account helps you:
- Keep clean financial records
- Avoid confusion when reviewing business expenses
- Simplify self-assessment prep for HMRC
- Look more legitimate to clients or lenders
Even if it’s not required, many UK freelancers make the switch within their first year.
Best Freelancer Bank Accounts in the UK
While you don’t need a “business account,” these providers are ideal for UK freelancers:
✅ Starling Bank (Sole Trader Account)
• Free UK business banking
• Excellent app + categorised spending
• Instant payment alerts
✅ Tide (Freelancer Plan)
• Fast setup — no credit checks
• Expense tagging + invoicing
• Integrates with accounting tools
✅ Monzo Business Lite
• Easy-to-use mobile banking
• Connects with HMRC and tools
• Optional paid plans with extras
👉 More options listed in our Freelancer Toolkit
📌 Final Thoughts
While you don’t need a business account, it’s one of the easiest ways to stay financially organised — and you’ll thank yourself come tax time.
If your freelance work is growing, now’s the perfect time to switch.