How to Open a Business Bank Account as a Sole Trader

Quick answer

Opening a business bank account as a sole trader takes about 8–10 minutes, is done entirely from your phone, and doesn’t require a registered company. Here’s exactly what you need and what to expect.

What you’ll need

Have these ready before you start:

✅ Photo ID — passport or UK driving licence
✅ Your National Insurance number
✅ Your home address (used as business address if you don’t have separate premises)
✅ Your business name (or your own name, if you haven’t chosen a trading name)
✅ A brief description of what your business does (one line: “web design”, “plumbing”, “online retail”)
✅ Your business start date (approximate is fine for banking purposes)
✅ Your phone with a working camera (for ID verification selfie)

You do not need:

A Companies House registration (sole traders don’t have one)
A UTR number (helpful if you have it, but not required for opening the account)
Proof of business income
A minimum deposit

Step-by-step process

This applies to all the major digital banks (Starling, Tide, Mettle, Monzo). The process is nearly identical across all of them.

Download from the App Store or Google Play. Create a personal login with your email and a password.

2. Select “Business Account” → “Sole Trader” (1 minute)

The app will ask what type of business you’re opening an account for. Select sole trader (not limited company, not partnership).

3. Enter your personal details (2 minutes)

Name, date of birth, home address, National Insurance number. Standard identity information.

4. Enter your business details (2 minutes)

Business name or trading name
Business category/industry (selected from a dropdown)
Brief description of what you do
Business address (home address is fine)
Estimated annual turnover (a rough estimate — this doesn’t lock you into anything)

5. Verify your identity (2–3 minutes)

Take a photo of your passport or driving licence, then a selfie for facial matching. The app checks these automatically. Some banks also run a soft credit check (this doesn’t affect your credit score).

6. Wait for approval

Starling: Most applications approved within a few hours. Some same-day.
Tide: Usually approved within minutes to a few hours.
Mettle: Typically within one working day.
Monzo: Usually within a few hours if you’re an existing Monzo customer. Longer for new customers.

Once approved, your sort code and account number are available immediately in the app. You can receive payments straight away, even before your physical debit card arrives (2–4 working days by post).

What if I get rejected?

It’s uncommon for sole traders to be rejected, but it can happen if:

Your identity verification fails (blurry photo, expired ID)
You have a very poor credit history (some banks do basic checks)
Your business description triggers compliance flags (anything involving regulated activities, crypto, or high-risk sectors)

If one bank rejects you, try another. Each has its own criteria. Starling and Tide have the broadest acceptance for sole traders.

Traditional banks vs digital banks

You can also open a business account at a high-street bank (Lloyds, Barclays, HSBC, NatWest). The process is different:

Lloyds, Barclays, HSBC: Online application or in-branch appointment. Usually takes 3–7 working days for approval. Free for 12 months, then £7–8/month.
NatWest: You can apply for Mettle (digital, instant) or a traditional NatWest business account (branch-based, slower).

For most sole traders, digital banks are faster, free permanently, and have better apps. High-street banks make sense mainly if you need branch access for regular large cash deposits.

Our full comparison: Best business bank accounts for sole traders

What to do immediately after opening

Don’t just open the account and forget about it. In your first sitting:

Set up your accounting software connection — enable bank feeds so every transaction imports automatically. This is the single biggest time-saver in your business admin. If you opened Mettle, activate the free FreeAgent account (you need to make at least one transaction per month to keep it free). If you opened Starling, explore the built-in Accounting Essentials — it may be all you need.
Create a tax savings pot — set aside 25–30% of every incoming payment. With Starling, use Savings Spaces. With Monzo Pro, use Tax Pots. With Tide, you’ll need to manually transfer to a separate savings account.
Share your new account details with clients — update any existing clients with your new sort code and account number. Add the details to your invoice template.
Move your business spending — start paying all business expenses from this account immediately. The sooner you separate personal from business, the cleaner your records will be at tax return time.

Next step

Choose which bank to open — we recommend Starling for most people
Download the app and apply — you’ll have your account number within hours
Connect accounting software in the same sitting

Last updated: March 2026.