Is it necessary for me to have a company bank account?

 For us, doing this guide is a bit of a departure. We're a money-saving website for consumers, and we're here to fight for you against corporations that overcharge and take advantage of you. However, for many of the five million self-employed people, the business and the consumer are often synonymous, so it's a bit of a grey area.

What is the difference between a personal and a company bank account?

A Limited Company bank account isn't very noteworthy. It's similar to your personal bank account on the surface, but it's one you open specifically for your business's income and expenses.

A business account, on the other hand, might range from a simple money-in, money-out account to one that assists you with invoices, payroll (if you hire others), and accounting and tax returns. Whatever you require, there will be an account available to assist you.

Many people are seeking for free business banking, which does not exist - at least not in the same way that it does for personal bank accounts. However, we'll go through the top pick accounts later in this guide, including which business bank accounts are the cheapest.

Who need the establishment of a business bank account?

There's a fine line to be drawn here, and it has to do with whether or not your company is legally independent from you. So...

If you want to start a business, you'll need a bank account.

You've formed a limited company in the United Kingdom (i.e., you've registered it with Companies House). Because your company is legally distinct from you, you should not use a personal account to pay for its expenses.

A corporate bank account isn't required if...

If you're a hairdresser, research interviewer, journalist, TV producer, gardener, designer, or developer, you're a sole trader or freelancer, or contracting (but not through a limited company).

You're working as a freelancer for Uber, TaskRabbit, or Deliveroo.

Because your business or self-employment isn't legally different from you, you don't need to open a business account. In the perspective of the law – and the taxman! – you and your business are one and the same as a freelancer, sole trader, or gig worker.

Even if you don't think you need one, you might want to open one nonetheless because it's sometimes easier to have one than to try to juggle your business's income and expenditure with your own, especially if your self-employment income accounts for the majority of your total income.

As a general guideline, if you're offsetting business expenses against your income (e.g., plane tickets, phone calls, or stationery), you should open a separate business account.

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