What is a business current account?

A business current account is your company’s main bank account – the place where all business money comes in and goes out. It keeps your personal and business finances separate, which makes accounting, managing cash flow, paying bills and handling taxes simpler.

Although they work much like personal current accounts, business accounts often include extra features like integration with accounting software to make day-to-day finance easier. Having one helps you maintain your business’s financial records and can build your credit score - both useful features if you ever need a loan or want to attract investors.

It’s mandatory for limited companies to have a business current accounts. But they are also highly recommended for sole traders and other businesses to keep finances organised, and for managing your tax affairs.

Why have a separate business account?

A business current account is more than just a place to store money – it comes with features and perks designed for running a business smoothly. From linked credit cards and overdraft facilities to invoicing tools, these accounts are built to help you run your finances, from managing cash flow to getting paid faster.

They also make a small business or sole trader setup look more professional. Clients, suppliers and partners see that you take your finances seriously, which can build trust and credibility.

And if you’re thinking about growth, the right account can help open doors to loans, business support and financial products that help your company expand confidently.

Key benefits:

  • Keep personal and business money separate – less stress at tax time.

  • Manage finances efficiently with invoicing, accounting tools and overdrafts.

  • Build your company’s credit history and appear professional to clients.

  • Access credit, loans and other tools to support growth.

How to find the right business current account

With so many business current accounts out there, picking the right one can feel a bit overwhelming. But it’s just about deciding which features will actually help your business run smoothly:

  • Integration with accounting software: Linking your account with your accounting tools makes bookkeeping, cash flow tracking and tax reporting easier.

  • Invoicing tools: Some accounts let you create, send and chase invoices straight from the app. This can speed up payments and save you time.

  • Access to credit or loans: If you may need a business credit card or short-term loan, check which accounts provide them. They can help cover cash flow gaps or fund growth.

  • International payments: For businesses with overseas clients or suppliers, look for accounts that support multiple currencies and low-fee international transfers.

  • Convenience and support: Make sure the online banking platform or app works for you. Some accounts include access to business specialists, for example, or a dedicated Relationship Manager.

Picking an account with the right features can make running your business finances smoother and save you time and stress every day.

Money matters: fees and interest on business current accounts

Once you’ve found accounts with the right features, it’s time to check on any fees you’ll pay, and interest you can earn. A little homework now can save big headaches later. Look for:

  • Account fees: Some business accounts charge a monthly fee, others may have charges for certain transactions, and some have both.

  • Overdrafts: An overdraft can help if your cash flow is tight, but check interest rates and any fees so you’re not caught out.

  • Transaction limits: Look at any fee-free limits for deposits, ATM or bank withdrawals, and other transactions. Going over could trigger extra charges, so make sure they match your business’s typical activity.

  • Other costs: Keep an eye on fees for international payments, cheques or cash deposits, especially if these are common in your business.

  • Interest on balances: Some accounts pay interest on your money, but check on the account fees too so you know how it balances out.

Understanding fees, limits and potential costs upfront will help you avoid surprises and keep your business finances running smoothly.

What do I need to open a UK business bank account?

To open a business bank account in the UK, you’ll need a few key documents. Here’s what banks usually ask for:

Proof of identity

A passport, driver’s license or national ID card.

Proof of address

Something recent, like a utility bill, council tax statement or mortgage statement.

Business paperwork

Depending on your setup, this could include a business registration certificate, partnership agreement or articles of association.

Financial info

Banks may ask for details about your personal and business finances, including income, assets, liabilities, tax and VAT registration details and other records.

Once you’ve got everything ready, you can usually apply online or in person, depending on the bank. It makes the process much smoother if you have all your documents to hand.

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Answering your questions about business current accounts

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Page updated on 6th November 2025, Reviewed by Richard Groom