All Current Accounts
NatWest Business Current Account
For smaller businesses with turnover under £500,000 and borrowing of under £25,000: NatWest have a team ready to discuss your business, future plans and any borrowing requirements your business may have, over the phone. For those of you with slightly bigger businesses with turnover over £500,000 and borrowing of more than £25,000: NatWest will look to assign an individual Relationship Manager from the local area, who is there to help with some of the more complex discussions around borrowing and your business plans moving forward.
Barclays Switcher Business Current Account
Barclays recommend a full switch if you’re ready to close your existing business account. You may prefer a partial switch if you’re not ready to close your exsting account). You’ll need: Your address history for the past 3 years. Business details, such as your registration number, address and the date of incorporation if your business is a limited company. Your personal details. Details of financial arrangements, such as mortgages, loans and credit cards.
Clydesdale Bank Business Choice
Credit Interest linked to the Bank of England base rate. Option of an agreed overdraft (subject to lending assessment and security may be required). Personal attention from your business banking contact. Choice of statements issued monthly, or more frequently on request. Charges may apply. Debit interest applied to overdrawn amounts. Credit interest linked to Bank of England base rate. Interest calculated daily and applied monthly. Unlimited withdrawals – subject to available funds. Fees may apply. Not available to personal customers.
How do I choose the right bank account for my business?
A business bank account is essential to keep your personal and company finances separate. If you're operating as a sole trader, there’s no legal requirement to have a business bank account, but it's a good idea to have one so you can keep better track of your earnings and expenditure.
On the other hand, if you're operating as a partnership, company or a trust, then you are legally required to have a separate bank account for tax purposes. It is particularly important for corporations, as they are treated as a separate entity where personal assets are protected from potential liability.
Setting up a business bank account will provide credibility if you want invoices and cheques to be paid to a company name rather than to your personal name. It will also provide a clear record of revenue and expenses.
Business bank accounts do cost more than personal accounts and you may find they pay less interest on the balance. Though you’ll be pleased to know that bank fees are a deductible business expense.
The bank account you should choose will depend on the size of your business, annual turnover and whether or not you have any employees. The fees can vary depending on your average balance, monthly transactions and whether or not you use your overdraft, so you should consider how you will use your account before signing up to one.
FAQs about business bank accounts
Do I need a business bank account or can I just use my personal one?
If you're operating as a sole trader, there’s no legal requirement to have a business bank account. However, if you're operating as a partnership, company or a trust, then you are legally required to have a separate bank account for tax purposes.
What are the common features of a business bank account?
Business bank accounts are similar to personal current accounts when it comes to their features. Most will include an overdraft facility, debit cards, online banking and the ability to earn interest.
How much does a business bank account cost?
Most business accounts charge an annual or monthly fee which can vary depending on your average balance, monthly transactions and whether or not you use your overdraft. You should consider how you will use your account before signing up to one as some banks charge for making withdrawals, paying money in or receiving payments by card.
What documents will I need to open a business bank account?
Most banks will ask you to provide proof of your identity, proof you are authorised to run the business' finances, details of your business partners if you are not a sole trader, and your annual revenue, company number and total employees.
How long does the process take to get a business bank account?
It varies depending on the bank you choose and whether or not they need to run any additional checks. Some can be opened in minutes if you apply online or in a branch.
How much can I pay into my business bank account?
Many business bank accounts will set a minimum and maximum balance. You may be charged if you go over or under these limits.
What will happen to my money if the bank goes bust?
In the UK, banks, building societies and credit unions are protected under the Financial Services Compensations Scheme (FSCS). This offers compensation if an institution goes bust.