(Photo: Mike Cohen via Flickr / CC BY 2.0)
One of the key decisions for a sole trader is deciding how they want to receive their income – and there are a wide choice of bank accounts on the market specifically for freelancers going it alone.
While most bank accounts that are designed with the fast-growing self-employed workforce in mind share many of the same benefits, determining the one that best suits you will depend on your own specific circumstances and needs. To help you navigate this crowded field, we’ve done the research so you don’t have to and picked out 5 of the best bank accounts for sole traders currently on the market.
Mettle
Mettle by NatWest was created specifically for UK-based sole traders and limited companies. Available for those with a balance limit of up to £1 million, one of the account’s biggest perks is that it comes with award-winning accounting software Free Agent included. This software features a rolling tax calculation that can be accessed directly in the Mettle app, and it also removes the hassle from your business admin by automatically saving a percentage of your income, or scheduling a set amount of money to go into a tax pot.
Starling
Starling’s sole trader account is designed for UK-based freelancers, traders and other self-employed workers looking to keep their business finances separate from their personal spending. The account has no monthly fees and includes free invoicing, 24/7 UK customer support and Spaces, which can be used to put money aside for tax. Another useful feature is Starling’s free built-in Accounting Essentials software, including a HMRC-recognised Making Tax Digital tool that lets users categorise expenses and submit updates to HMRC directly from their account.
tide
Free to open, with no monthly fees and with account holders able to start using it straight away, tide’s sole trader-targeted account is packed with tools that save you time and money. Among them are functions that generate and send payment links in seconds, auto-categorisation for tagging your income and spending, and creating, tracking and sending invoices directly from the tide app. There is also 24/7 in-app support via live chat.
Revolut Pro
If you’re already a Revolut account holder, Revolut Pro might be the obvious choice for your your sole trader needs. A simplified business account available within the personal Revolut mobile app and free for existing account holders, it’s built to meet the needs of people with smaller-scale ventures. It allows customers to manage multiple currencies, simplify expenses, accept payments on a larger scale, integrate tools, and plenty more. You can also earn up to 1% cashback on your business spend.
Monzo Business Lite
Monzo Business Lite is a free business banking plan designed for sole traders and limited companies looking for a streamlined mobile and web banking experience. It provides various banking tools, such as UK bank transfers, payment links, and card acceptance, without a monthly subscription fee. Other notable features include fee-free debit card payments anywhere, instant notifications when money goes in or out, and automatic syncing with a number of renowned accounting software solutions.