Free accounts with accounting integrations — Starling · Monzo Business · Tide · Mettle · HSBC Kinetic compared
Sole traders are not legally required to have a separate business bank account, but it is strongly recommended. Mixing personal and business finances makes your Self Assessment tax return significantly harder to prepare, increases accountant fees, and looks unprofessional to clients. The good news: the best options are completely free.
| Provider | Monthly fee | FreeAgent | Xero/QBO | Invoicing | Cash deposits |
|---|---|---|---|---|---|
| Starling | Free | ✓ | ✓ | Basic | Post Office |
| Mettle | Free | Included free | ✗ | Basic | No |
| Monzo Business | Free / £9 | ✓ (paid) | ✓ (paid) | Basic | No |
| Tide | Free / £9.99 | ✓ | ✓ | Built-in | Limited |
| HSBC Kinetic | £6.50 (free 12mo) | ✓ | ✓ | Basic | Branch |
Starling's sole trader account is free, full-featured, and consistently rated the best business bank account in the UK. No monthly fee, free UK bank transfers, a clean app with Spaces for tax saving, and integrations with all major accounting software. Their bank feed to FreeAgent, Xero and QuickBooks syncs transactions automatically — a significant time saver for Self Assessment and MTD.
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Mettle bundles FreeAgent accounting software (normally £19/month) at no extra cost with a free business account. If you were already planning to pay for FreeAgent, Mettle saves you £228/year while giving you a solid bank account with automatic transaction syncing. Built by NatWest Group so backed by a major UK bank's infrastructure.
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Monzo Business works well if you already use Monzo personally — the combined app experience is seamless. The free Lite tier gives you a basic account; the £9/mo Pro tier adds accounting integrations and invoicing. For sole traders who want accounting integration, compare Monzo Pro (£9/mo) against Starling (free with same integrations) — Starling wins on cost.
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Tide's invoicing tools are built into the app and available on the free tier — making it the best choice if your business involves frequent invoicing to clients. You can create, send and track invoices directly from your bank account without a separate invoicing tool. Expense cards and team accounts are also available on higher tiers.
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HSBC Kinetic is a mobile-first business account backed by HSBC's full UK branch network. The 12-month free period makes it cost-competitive short-term; at £6.50/mo thereafter it is more expensive than Starling or Mettle. Best suited to sole traders who handle significant cash (e.g. tradespeople, market stalls) who need branch cash deposits, or those who prefer an established high-street bank.
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Starling. Free, full accounting integrations, best app. No reason to pay elsewhere.
Mettle. Free bank account + FreeAgent included — saves £228/yr vs paying for FreeAgent separately.
Tide. Built-in invoicing on the free tier — no separate invoicing tool needed.
HSBC Kinetic. Full branch network for cash deposits. Accept the £6.50/mo for the cash handling capability.
Sole traders are not legally required to have a separate business bank account — unlike limited companies. However, a separate account is strongly recommended for tax purposes: it makes separating business and personal income much easier, simplifies your Self Assessment tax return, and looks more professional to clients. HMRC does not require it but your accountant will strongly advise it.
Starling Bank's sole trader account is free and widely considered the best overall — no monthly fee, free UK bank transfers, and integrations with FreeAgent, Xero, QuickBooks and Sage. Mettle (by NatWest Group) is also free and includes FreeAgent accounting software at no extra cost, making it the best option if you were going to pay for FreeAgent separately (£19/mo).
Yes — there is no legal requirement preventing a sole trader from using a personal account. However, many banks' personal account terms prohibit using the account for business purposes. If discovered, the bank can close your account. A dedicated business account also makes bookkeeping, tax returns and expense tracking much simpler. Free options like Starling and Mettle remove the cost barrier entirely.
Yes — most modern business bank accounts offer bank feeds to accounting software. Starling integrates with Xero, QuickBooks, FreeAgent and Sage. Mettle includes FreeAgent free of charge. Tide integrates with Xero and QuickBooks. This bank feed automation saves significant time on bookkeeping and is essential for MTD for Income Tax (ITSA) compliance from April 2026.