Free Business Bank Accounts for Sole Traders UK (2026)
Quick answer
You don’t need to pay for a business bank account. Several UK banks offer genuinely free accounts for sole traders — no monthly fee, no minimum balance, and no requirement to be a registered limited company.
Here are the accounts that are actually free, not just “free for 12 months then we charge you.”
Permanently free accounts
Starling Bank Business
- Monthly fee: £0
- UK payments: Free (bank transfers, Direct Debits, standing orders)
- Cash deposits: Free up to £1,000/month at any Post Office (3% fee above that)
- Card: Mastercard debit, contactless
- App rating: 4.7/5 — highest-rated UK business banking app
- Accounting integrations: Xero, QuickBooks, FreeAgent via open banking
Starling is our top recommendation for most sole traders. It’s genuinely free with no strings, the app is excellent, and it now includes Accounting Essentials — free invoicing, expense categorisation, and Making Tax Digital submissions built right in. The free Post Office cash deposits (up to £1,000/month) are a bonus that most digital banks don’t offer.
Mettle by NatWest
- Monthly fee: £0
- UK payments: Free
- Cash deposits: Not available (fully digital)
- Card: Visa debit
- Accounting integrations: FreeAgent included free (full version, normally £33/month excl. VAT)
Mettle’s standout feature is the free FreeAgent subscription — that’s nearly £400/year you’re not spending on accounting software. If you don’t already have an accounting tool, Mettle + FreeAgent is the most cost-effective combination available for sole traders. The trade-off: no cash deposit facilities at all.
Tide (Free plan)
- Monthly fee: £0 (paid plans available from £12.49/month with extra features)
- UK payments: 5 free bank transfers per month (20p per transfer after that)
- Cash deposits: 0.99% (min £2.50) at Post Office
- Card: Visa debit
- Accounting integrations: Xero, QuickBooks, FreeAgent, Sage
- Built-in invoicing: Yes — create, send, and track invoices from the app
Tide is the most popular business banking platform in the UK by account numbers. The free plan is limited to 5 bank transfers per month and 3 invoices — sole traders with regular clients will likely need a paid plan. The broad accounting integrations (Xero, QuickBooks, FreeAgent, Sage) are the main advantage over other options.
Monzo Business Lite
- Monthly fee: £0
- UK payments: Free
- Cash deposits: £1 per deposit at PayPoint locations
- Card: Mastercard debit
- Accounting integrations: None on Lite plan (Xero and FreeAgent available on Pro at £5/month)
Monzo Lite is basic — it’s essentially a second Monzo account with a business label. No invoicing, no accounting integrations, no tax pots. Those features are on the Pro plan (£5/month). Best for existing Monzo users who want simple separation between personal and business money, but you’ll likely want to upgrade or use separate accounting software.
”Free for X months” accounts (then they charge)
Some traditional banks offer free introductory periods:
- Lloyds Business Account — free for 12 months, then £7/month
- HSBC Business Account — free for 12 months, then £8/month (or free if you maintain a minimum balance)
- Barclays Business Account — free for 12 months, then £8/month
These can work if you specifically want a high-street bank (e.g. you need branch access for regular large cash deposits). But for most sole traders, the permanently free digital banks above offer better features, better apps, and — crucially — stay free.
How to choose
| Situation | Best Free Account |
|---|---|
| Most sole traders | Starling — best app, truly free, includes invoicing and accounting essentials |
| Want free accounting software | Mettle — comes with FreeAgent at no cost |
| Want broad accounting integrations | Tide — connects to Xero, QuickBooks, FreeAgent, and Sage |
| Already use Monzo | Monzo Lite — simple separation, familiar app |
| Need branch access / large cash deposits | Lloyds or Barclays (free for 12 months, then paid) |
Don’t let the choice slow you down. Pick one and open it today — they’re all free, they all work, and switching later is straightforward if you change your mind.
Full detailed comparison with pros, cons, and opening process: Best business bank accounts for sole traders
Next step
- Pick an account from the list above and open it — 8–10 minutes from your phone. You’ll need photo ID and your National Insurance number.
- Connect accounting software — set up bank feeds in your first sitting
- Use it for every business transaction from day one — the cleaner your records, the easier your tax return
Last updated: March 2026. Fees and features verified at time of writing. Some links are affiliate links — we earn a commission at no cost to you.