Best Business Bank Accounts for Sole Traders (UK, 2026)

Quick answer

Most sole traders should use a free business bank account like Mettle, Starling, or Tide.

They’re easy to open, have no monthly fees, and are designed for small businesses and freelancers.

👉 If you want the simplest setup, Mettle is the best starting point — especially because it includes FreeAgent accounting software at no cost.

If you also need software, read this next: Best Accounting Software for Sole Traders

Best business bank accounts for sole traders

🥇 Best overall: Mettle (Free + FreeAgent)

Best for: Most sole traders who want a simple, cost-effective setup.

• No monthly fees
• UK-based (backed by NatWest)
• Includes FreeAgent accounting software for free
• Easy setup and clean mobile app
• Designed specifically for freelancers and small businesses

👉 If you want banking + accounting sorted in one step, Mettle is the best option.

👉 This is the easiest way to set up both banking and accounting together.

Because Mettle includes FreeAgent, it’s worth reading our full guide to the best accounting software for sole traders before you decide.

⭐ Best for everyday banking: Starling Bank

Best for: Sole traders who want a full-featured business account with strong app experience.

• No monthly fees
• FSCS protected UK bank
• Excellent mobile app and user experience
• Real-time notifications and spending insights
• Good for separating personal and business finances

👉 Choose Starling if you want a “proper bank” feel with modern features.

⚡ Best for quick setup: Tide

Best for: Fast account opening and simple invoicing tools.

• Quick online setup
• Free plan available
• Built-in invoicing and expense tools
• Add-ons available as you grow

👉 Tide is a good option if you want to get up and running quickly.

Do sole traders need a business bank account?

Not legally — but in practice, yes.

Using a separate account makes it much easier to:

• track income and expenses
• stay organised for tax
• avoid mixing personal and business spending
• work with accounting software

👉 Most sole traders open a business account early to keep things simple.

Free vs paid accounts

Most sole traders do not need a paid account.

Free accounts like Mettle, Starling, and Tide cover:

• receiving payments
• sending payments
• basic expense tracking
• integration with accounting software

You may consider paid plans later if you need:

• multiple users
• advanced tools
• higher limits

How to choose (simple version)

If you’re unsure, use this:

• Want free + accounting included → Mettle
• Want best app experience → Starling
• Want fastest setup → Tide

Best setup (bank + accounting)

For most sole traders, the simplest setup is:

👉 Open a Mettle account
👉 Use FreeAgent (included for free)

This gives you:

£0/month banking + £0/month accounting software

👉 It’s the most cost-effective and lowest-effort setup available.

If you want to compare FreeAgent against the other main options, start here:
Best Accounting Software for Sole Traders

Final recommendation

If you want the simplest, lowest-effort setup:

👉 Use Mettle (free + includes FreeAgent)

If you want the best overall banking experience:

👉 Use Starling

If you want the fastest setup and flexibility:

👉 Use Tide

All three are solid — but most sole traders should start with Mettle to get both banking and accounting sorted in one step.

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Last updated: March 2026. Features may change. Always check provider websites for the latest details.