Tide vs Starling for Sole Traders: Which Is Better?

Quick answer

Tide and Starling are the two most popular free business accounts for UK sole traders. Both now offer invoicing, accounting integrations, and expense tracking — but they take different approaches. Starling bundles its own Accounting Essentials (including MTD submissions) for free. Tide focuses on broad third-party integrations and more granular expense tools.

Here’s a direct comparison to help you pick.

Head-to-head

Where Starling wins

The app is better. Starling consistently rates as the best banking app in the UK — personal or business. Transactions appear instantly, the interface is clean, and everything is where you’d expect it. Tide’s app is good, but it’s busier and occasionally sluggish.

Unlimited free transfers. Starling doesn’t limit how many bank transfers you make. Tide’s free plan caps you at 5 per month — sole traders with a handful of regular clients will hit that almost immediately.

Free cash deposits. You can deposit cash at any Post Office for free (up to £1,000/month). Tide charges 0.99% (min £2.50). If you handle any amount of cash — even occasionally — Starling saves you money.

Built-in accounting essentials. Starling now includes its own accounting tools — expense categorisation, invoicing, and Making Tax Digital submissions — for free, built into the app. You may not need separate accounting software at all for simple businesses.

Phone support on the free plan. If something goes wrong, you can call Starling and speak to a person. Tide reserves phone support for paid plans (from £12.49/month). The free plan gets chat and email only.

Savings Spaces. Starling lets you create separate savings pots within your business account — useful for setting aside tax money, saving for equipment, or ringfencing project budgets. Tide has no equivalent.

Simpler. If you just want a bank account that works — money in, money out, connected to your accounting software — Starling does it with less clutter.

Where Tide wins

Broader accounting integrations. Tide connects to Sage in addition to the big three (Xero, QuickBooks, FreeAgent). If you already use Sage, this matters. Starling’s built-in tools are good for simple businesses, but if you want a dedicated third-party accounting package, Tide’s integration range is wider.

More detailed expense categorisation. Tide’s auto-categorisation is more granular, which helps at Self Assessment time. The app learns your spending patterns and gets better over time.

Multi-company support. If you run more than one business (or plan to), Tide lets you manage multiple accounts from one login. Starling treats each business as a separate app profile.

Our recommendation

For most sole traders: Starling. It’s the better bank, the app is excellent, and the combination of unlimited free transfers, free cash deposits, phone support, and built-in accounting essentials makes it the strongest free offering. You may not even need separate accounting software for a simple business.

Choose Tide if: you already use Sage, need more granular expense categorisation, or prefer Tide’s approach to managing multiple businesses. Be aware that the free plan’s 5-transfer limit means you’ll likely need the £12.49/month plan fairly quickly if you’re actively trading.

Or consider Mettle instead of both if you want free accounting software bundled in. Mettle + FreeAgent (free) gives you banking, invoicing, expense tracking, and Self Assessment filing in one package at no cost. See our full comparison of the best accounts.

Can I switch later?

Yes, easily. Neither account has exit fees or minimum terms. Opening a new account takes 10 minutes. The only admin is updating your payment details with clients and redirecting any standing orders or Direct Debits. Most people complete the switch in a day.

The main thing: don’t let the decision delay you. Both accounts are free, both are good, and having any business bank account is better than running everything through your personal one. Pick one, connect it to your accounting software, and start trading.

Next step

1. Open Starling or Tide — 8–10 minutes from your phone
2. Choose accounting software and connect it via bank feeds
3. Send your first invoice — through your bank app (Tide) or accounting software (Starling)

Last updated: March 2026. Features verified at time of writing. Some links are affiliate links.