Sole trader bank accounts: do you need a separate one?
By SendPay Business · · 2 min read
In the UK a sole trader is not legally required to open a business bank account, because you and the business are the same legal person. Limited companies are different and do need their own account. Even so, many sole traders choose a separate account to keep things simple.
Why a separate account helps
- Your Self Assessment tax return is easier when business income and costs are in one place.
- You can see at a glance how the business is really doing.
- Customers see a business name on payments, which can look more professional.
Check your bank's rules
Some banks' terms say a personal account shouldn't be used mainly for business. If you take a lot of business payments into a personal account, read the terms or ask the bank.
What to look for
- Monthly fees and charges per payment.
- Easy ways to get paid, such as payment links and invoices.
- Links to accounting software.
- Whether your money is protected, and by whom.
Where SendPay fits
SendPay isn't a bank. SendPay platforms give your customers GBP, EUR and USD accounts, transfers and branded Visa cards under your own brand, powered by licensed partners. SendPay doesn't offer lending.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
Which business account costs less?
Compare two accounts' monthly and per-payment fees using your own numbers.
Business bank account fee calculator →What is a business bank account?
An account used for a business's money rather than personal spending.
Business bank accounts →What is a sweep account?
An account that moves spare cash automatically based on rules you set.
Sweep accounts →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.