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Do I need a business bank account?

If you’re using a personal bank account for your business, switching to a business one could save you time, simplify your business accounting and help you access business finance.

Did you know that three-quarters of the UK’s self-employed workforce use personal bank accounts for all their business transactions1?

If that includes you, it’s important to know that switching to a business account can offer you valuable benefits

  • Save time – with UK freelancers and sole traders spending 15 days a year sorting company expenses from their personal bank accounts1, using a business bank account can help you save time and manage your finances more efficiently
  • Simplify your business accounting – separating personal from business transactions simplifies your bookkeeping process, making sure you’ve captured all your business income plus the expenses you’re able to deduct. Glenn Collins, Technical Advisor at the Association of Chartered Certified Accountants explains, “Being able to easily identify business expenses helps make sure your business pays the right amount of tax. You pay tax on the profit your business makes. When you calculate the profit, tax rules allow for certain expenses to be deducted from your business income – a business account helps to identify these expenses”
  • Access to business finance – most lenders won’t consider you for business finance if they only have personal account information. Having a business account will enable you to build up credit history for your business and you could find it easier to get a loan

Using your personal account for business use is also in breach of our terms and conditions, so we could close your account or stop providing a service.  

Get expert support for your business

Having a separate business account also means that you can access features not available to personal customers. Like the knowledge and expertise of business banking managers, who can help you identify opportunities in the market and support your business growth. And many business accounts provide online tools that will enable you to better manage your business finances.

Choosing the right business account

When choosing the right bank account, it’s important to consider the current and future needs of your business. Make sure to look beyond just the account fees – for example, the expertise and support of business banking managers, plus the extra features offered with the account, can play an important role in helping your business expand.

With our business account, you’ll not only benefit from our knowledge and expertise, you’ll also get access to lots of helpful tools. Barclays Collect, SmartBusiness Dashboard, mobile invoicing and online group payments are just some of the unique features that can make it easier to manage your business. And new businesses will also benefit from 12 months’ free banking2.

Find out more about opening a business bank account

Startup

Start-up business account

Free business banking for the first 12 months

Kick-start your business with free banking for 12 months3, with expert advice on hand when you need it in those vital early months.

Setting up a private company

Understanding your options

Our tips will help you choose the right way to register your business, whether it’s using a formation agent, an accountant or registering the company yourself.