Legal requirement for all ltd companies — Starling Business · Tide · Wise · Revolut Business · Lloyds compared
A limited company is a separate legal entity — its finances must be kept entirely separate from the directors' personal money. Unlike sole traders, limited companies must have a dedicated business bank account. This is not optional. Mixing company and personal funds can expose you to personal liability and create serious tax and legal complications.
| Provider | Monthly fee | FSCS protected | Multi-user | Accounting | International |
|---|---|---|---|---|---|
| Starling Business | Free | Yes (bank) | ✓ | FreeAgent, Xero, QBO, Sage | Good |
| Tide | Free / £9.99+ | No (e-money)* | ✓ (paid) | Xero, QBO, FreeAgent | Limited |
| Wise Business | Free (+ per-use) | No (e-money) | ✓ | Xero, QBO | Excellent |
| Revolut Business | Free / £25+ | No (e-money) | ✓ | Xero, QBO, Sage | Excellent |
| Lloyds Business | £7/mo (free 12mo) | Yes (bank) | ✓ | Xero, QBO, Sage | Good |
*Tide is an e-money institution, not a bank — funds are safeguarded (ring-fenced) but not covered by FSCS. Wise and Revolut are also e-money institutions.
Starling Business is the standout choice for most limited companies: free, FSCS-protected (it's a real UK bank), and integrates with FreeAgent, Xero, QuickBooks and Sage. Multi-director access and accountant read-only access are both supported. The automatic bank feed eliminates manual transaction import, making CT600 preparation and MTD compliance significantly easier for your accountant.
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Tide's built-in invoicing and multiple expense card support makes it particularly strong for limited companies with employees making purchases or regular client invoicing requirements. The paid tiers (£9.99/mo Plus, £18.99/mo Pro) add enhanced team access and cashback. Note: Tide is an e-money institution, not a bank — funds are safeguarded but not FSCS-protected. Consider using alongside a bank account for large balances.
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Wise Business is the clear leader for limited companies with international clients or suppliers. Real exchange rates (mid-market rate), low transfer fees, and the ability to hold and receive payments in 40+ currencies make it far cheaper than traditional bank international transfers. Most contractors and agencies operating internationally use Wise alongside a main UK bank account.
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Revolut Business suits limited companies that need multi-currency accounts, team spending controls, and detailed analytics. The free tier is useful for light use; paid plans (from £25/mo) add more included transfers, more cards, and enhanced team controls. Like Wise, best used alongside a main FSCS-protected bank account rather than as the sole account for a limited company.
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For limited companies that need a traditional bank relationship — overdraft facility, branch cash handling, cheques, or face-to-face business banking — Lloyds is a strong option. The 12-month free period makes the initial cost competitive; at £7/mo thereafter it costs more than Starling but provides access to credit products, branches and the full Lloyds commercial banking relationship if your business grows.
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Starling Business. Free, FSCS-protected, FreeAgent integration — ideal starting point for most contractor-directors.
Starling + Wise Business. Use Starling as main UK account, Wise for international receipts and payments in multiple currencies.
Tide Pro. Built-in invoicing, team expense cards, and expense categorisation in one platform.
Lloyds Business. Overdraft facility, branch access, and a pathway to commercial lending as you scale.
Yes — limited companies are legally separate entities. Company funds must be kept separate from personal funds. Using a personal account for company transactions can blur the corporate veil, create serious tax complications, and may breach HMRC rules. Unlike sole traders, limited companies have no legal alternative — a dedicated business account is required.
Key features: (1) Multi-director/user access for both directors and accountant; (2) Accounting software integration for automatic bank feeds; (3) Payroll support for director salary; (4) CHAPS/international payments; (5) Expense debit cards; (6) Ability to set up direct debits. FSCS protection is important — check if the account is a full bank or an e-money institution.
Starling is generally better for most limited companies — free, full FSCS bank protection, and stronger accounting integrations. Tide has better built-in invoicing and more expense card options, which suits businesses with multiple team members making purchases. If you regularly invoice clients and need team cards, Tide's paid tiers are worth comparing.
Wise and Revolut are e-money institutions, not banks — not FSCS-protected (though they safeguard client funds separately). They are excellent for international payments but are less suitable as a sole main account. Most accountants recommend a UK-regulated bank (Starling, Monzo, Lloyds) as the primary account, with Wise or Revolut alongside for international transactions.