The best UK business bank accounts in 2025 match your needs: low fees, fast onboarding, multi-currency support, and strong integrations. Revolut suits international traders with quick setup and low-cost FX. Starling offers free basics and smart add-ons. HSBC and Barclays give a free first year plus tools and integrations (Xero, FreshBooks). Tide keeps costs lean with generous free transactions. Compare invoicing, overdrafts, support quality, and pricing. You’ll also see how to open, switch, and what documents you’ll need next.
Key Takeaways
- Revolut suits international traders with fast setup, low fees, and multi-currency accounts.
- HSBC offers a free first year, startup-friendly tools, and seamless Xero integration.
- Barclays provides a free first year, 24/7 support, and FreshBooks access for invoicing.
- Starling Bank delivers a free basic account, mobile-first banking, and flexible paid add-ons.
- Tide features up to £200 in free cash and competitive pricing for lean operations.
What Is a Business Bank Account?
Although it looks like an ordinary current account, a business bank account is built for running a company’s money: it separates your business and personal transactions, simplifies bookkeeping and tax, and unlocks tools tailored to trading.
You use it to manage income, expenses, and cash flow under your business’s name, keeping records clean and auditable.
If you run a limited company or LLP, you’re legally required to have one. As a sole trader or freelancer, you’re not, but you’ll gain clearer tracking and smoother tax returns.
Business accounts often include invoicing tools, accounting software integrations, and access to overdrafts or credit facilities. Your eligible deposits are protected by the FSCS up to £85,000 per banking group.
To open one, you typically provide ID, business registration details, and estimated turnover.
How Business Bank Accounts Work
Now that you know what a business bank account is, here’s how it works in practice: you run all company money through it—taking payments, paying suppliers, and managing payroll—so your personal spending stays out of the books. You’ll deposit sales income, make withdrawals, and track every transaction in one place, which keeps records clean for tax and forecasting.
Most accounts give you online banking, invoicing tools, and accounting software integrations, so you reconcile income and expenses quickly. You can also access overdrafts, credit cards, and loans to steady cash flow or fund growth. Funds are usually protected by the FSCS up to £85,000.
Expect to provide ID, trading address, and estimated turnover. Approval typically takes one to four weeks.
| Feature |
What it does |
Why it matters |
| Invoicing |
Sends/collects payments |
Speeds cash cycle |
| Integrations |
Syncs bookkeeping |
Cuts errors |
| Credit access |
Overdrafts/loans |
Smooths cash flow |
Why Open a Business Bank Account in 2025
Even if you’re just starting out, opening a business bank account in 2025 keeps your company’s money clearly separate from your personal finances—and if you run a limited company, it’s a legal must.
You’ll avoid messy records, protect your personal assets, and present a professional image to clients and suppliers. It also streamlines tax season by keeping income and expenses organised, reducing errors and saving time.
You’ll benefit from tools tailored to small businesses, like invoicing, expense tracking, and accounting integrations that improve day-to-day efficiency. Building a business credit profile becomes easier, helping you access loans and credit lines for growth.
Many providers also offer competitive fees and international services that beat personal accounts for business use.
1) Simplify taxes and bookkeeping
2) Build credit and access finance
3) Reduce costs and handle cross-border payments
Key Features to Compare
With the benefits clear, your next step is choosing an account that fits how you operate day to day.
Start by checking accounting software integrations. Seamless syncing reduces manual entry, improves expense categorisation, and accelerates month-end close.
Scrutinise pricing. Compare monthly maintenance fees, domestic and international payment costs, ATM and cash deposit charges, card fees, and foreign exchange margins.
Small differences can erode margins and strain cash flow.
Prioritise built-in invoicing. Automated invoice creation, reminders, and payment matching tighten credit control and cut admin.
Assess overdraft options. Look at limits, interest rates (EAR/APR), arrangement fees, renewal costs, and repayment flexibility.
Ensure terms suit your cash cycle and seasonality.
Finally, test support. Check live chat hours, phone response times, help-centre quality, and customer ratings to ensure quick issue resolution.
Best UK Business Bank Accounts Reviewed
Before you commit, focus on how each leading provider fits your workflow, fees, and support needs.
Revolut suits international traders with fast setup, low fees, and multi‑currency accounts.
Revolut suits international traders with fast setup, low fees, and powerful multi-currency accounts.
HSBC’s Business Bank Account gives you a free first year, startup-friendly tools, and Xero integration.
Barclays matches that free first year, adds 24/7 support, and bundles FreshBooks access.
Starling Bank shines for mobile-first operations, offering free basic sole trader accounts and flexible add‑ons that plug into major accounting platforms.
Tide appeals with £200 in free cash using the Tide referral code: REFER200 & free transactions and competitive pricing for lean operations.
1) Pick for global payments: Revolut’s multi‑currency and low FX fees.
2) Choose for startup support: HSBC or Barclays with first‑year freebies.
3) Go mobile-first: Starling; need low-cost basics? Tide delivers.
How to Open and Switch Accounts
Although the process varies by provider, opening a UK business bank account is straightforward and often fully online. You’ll submit personal details, your trading address, estimated turnover, and—if relevant—your company registration number.
Most banks let you apply via web or mobile; you can also visit a branch. Limited companies must use a business account, while sole traders and freelancers benefit from one for cleaner finances.
Expect timelines to differ. Established banks may run deeper credit checks and take longer. Digital banks often approve faster—sometimes within a day.
When switching, check if you qualify for the Current Account Switch Service (CASS): it covers businesses with fewer than 50 employees and turnover under £6.5m.
CASS transfers direct debits, standing orders, and incoming payments automatically and closes your old account. Review fees and limits before switching.
Documents and Eligibility Requirements
Once you’ve chosen how to open or switch your account, focus on what you’ll need to qualify.
Banks will ask for personal ID (passport or driving licence) and proof of your business address. Expect to provide your trading address and estimated turnover.
Limited companies must supply a company registration number and articles of association; sole traders usually show proof of self-employment.
Most banks want at least one director or owner with a solid credit history, though some options accept bad credit. Approval can take one to four weeks, depending on requirements and business complexity.
Banks prefer strong credit, but bad-credit options exist. Approvals typically take one to four weeks.
If you’re eligible, CASS can move payments seamlessly.
- Gather: ID, address proof, trading address, turnover.
- Company type: sole trader vs limited company documents.
- Eligibility: credit, timelines, and CASS criteria.
Conclusion
You’ve got everything you need to pick the best UK business bank account for 2025. Compare fees, interest, integrations, support, and perks, then match them to your cash flow and growth plans. Don’t wait—opening or switching is quicker than you think, and the right account can cut costs, streamline bookkeeping, and boost credibility. Gather your documents, check eligibility, and apply online. Lock in smart banking now so you can focus on winning customers and scaling your business.
