Business bank accounts for sole traders

You don't legally need a business account as a sole trader, but keeping the business money apart makes tax, MTD and your records far easier. Three app-based accounts compared.

Prices checked Sept 2026
Taken from each company's UK pricing page. Monthly prices, before VAT. We earn from none of these 3.

Our verdicts

Best free everyday account

Starling

Best for a free start you can grow into

Tide

Best for invoicing and tax in one app

ANNA

Side by side

ProductStarling No dealTide No dealANNA No deal
Best forSole traders who want a full, free bank account with a branchless bank.New sole traders who want a free account now and more features later.Sole traders who want invoices, receipts and tax estimates handled in the same app as the account.
Starts at£0a month for the sole trader account£0a month (Free plan)£0a month (Pay as you go)
Other plansPaid add-on for invoicing and tax toolsSmart £12.49, Pro £27.49, Max £69.99 a monthBusiness about £14.90, Big Business about £49.90 a month plus VAT
Priced byFree account, paid add-onsMonthly planMonthly plan, or a fee on money paid in
Free optionOpen in the appFree planFirst month free on paid plans
Main downsidePaying in cash at the Post Office costs 0.7%, at least £3.The Free plan allows five transfers out a month.Pay as you go takes 0.95% of money paid in.
Do we earn?NoNoNo
Try itVisit Starling

Plain link. We have no deal with Starling and earn nothing.

Visit Tide

Plain link. We have no deal with Tide and earn nothing.

Visit ANNA

Plain link. We have no deal with ANNA and earn nothing.

Starling

No deal

Best free everyday account. Sole traders who want a full, free bank account with a branchless bank.

£0 a month for the sole trader account

Other plans
Paid add-on for invoicing and tax tools
Priced by
Free account, paid add-ons
Try it
Open in the app
Downside
Paying in cash at the Post Office costs 0.7%, at least £3.
Visit Starling

Plain link. We have no deal with Starling and earn nothing.

Tide

No deal

Best for a free start you can grow into. New sole traders who want a free account now and more features later.

£0 a month (Free plan)

Other plans
Smart £12.49, Pro £27.49, Max £69.99 a month
Priced by
Monthly plan
Try it
Free plan
Downside
The Free plan allows five transfers out a month.
Visit Tide

Plain link. We have no deal with Tide and earn nothing.

ANNA

No deal

Best for invoicing and tax in one app. Sole traders who want invoices, receipts and tax estimates handled in the same app as the account.

£0 a month (Pay as you go)

Other plans
Business about £14.90, Big Business about £49.90 a month plus VAT
Priced by
Monthly plan, or a fee on money paid in
Try it
First month free on paid plans
Downside
Pay as you go takes 0.95% of money paid in.
Visit ANNA

Plain link. We have no deal with ANNA and earn nothing.

The downsides

What we'd want to know before paying for each one.

Starling

There's no monthly fee for everyday banking, but cash is where it costs: paying in at the Post Office is charged at 0.7% of each deposit, with a £3 minimum. If customers often pay you in cash, that adds up.

Tide

Free is genuinely free, but it caps you at five transfers out a month, which a busy month of supplier payments can pass. Smart, at £12.49 a month, raises that to 30.

ANNA

There's no monthly fee on Pay as you go, but 0.95% of each payment you receive goes to ANNA, which is more than a paid plan once you take a few thousand pounds a month.

How we compared them

Fees are from each provider's UK pages and recent reviews, checked September and October 2026. High-street banks such as NatWest, Lloyds and Barclays also offer sole trader accounts, usually with a free period then a monthly fee, and branches for paying in cash.

We have no deal with any of these 3, so every link on this page is a plain link and we earn nothing from it. How we make money