Best Business Bank Accounts for One-Person Limited Companies UK (2026)

When you incorporate a limited company, opening a business bank account isn’t optional — it’s a legal requirement. Your company is a separate legal entity, which means its money must be kept separately from yours.

But most business banking comparisons are written for companies with teams, multiple directors, complex international payments, and high transaction volumes. If you’re a sole director running a small limited company, most of that comparison is irrelevant — and the accounts that work best for you are often buried under enterprise-grade options you’ll never need.

This guide is written specifically for one-person limited companies. What you actually need, which accounts work best for your setup, and where to find the best deals.

Before you open an account: Members of The Self Employed Club get exclusive deals on business banking for limited company directors. Free to join. See what’s available →

What a One-Person Limited Company Actually Needs From a Business Bank Account

Before comparing accounts, it’s worth being clear on what matters for your setup specifically — because the features that matter for a 20-person company are very different from what a sole director needs.

What you need:

• A clean separation of company and personal finances
• Integration with your accounting software (Xero, FreeAgent, QuickBooks)
• A savings space or pot to set aside Corporation Tax and VAT reserves
• Simple, low-cost or free day-to-day banking
• A reliable app you’ll actually use

What you probably don’t need yet:

• Multi-user access and team spending controls
• Complex international payment rails
• Payroll processing through the bank
• Expense cards for multiple employees

That narrows the field considerably — and the accounts that come out top for one-person companies are not always the same ones that top the generic comparison charts.

Important: FSCS Protection for Business Accounts

Before choosing any provider, check their FSCS protection status. The FSCS limit increased to £120,000 per banking licence in December 2025.

Fully FSCS-protected (up to £120,000): Starling, Monzo, NatWest/Mettle, Revolut (full banking licence from March 2026), Tide (via ClearBank), Zempler

E-money institutions (safeguarded but not FSCS-covered): ANNA, some other fintechs

For most one-person companies the distinction matters — particularly if you hold significant cash reserves in the account ahead of a Corporation Tax payment.

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The Best Business Bank Accounts for One-Person Limited Companies

1. Starling Business — Best Overall Free Account

The headline: Genuinely free, fully licensed bank, FSCS-protected, excellent app, direct accounting software integration.

Starling is consistently the strongest free business bank account for one-person limited companies. No monthly fee, no per-transfer fees for UK payments, FSCS protection up to £120,000, and one of the best business banking apps available.

The feature that matters most for sole directors: Spaces. You can ring-fence money for Corporation Tax, VAT, and dividend reserves within the same account — so you always know exactly what the company actually has available to spend, separate from what’s earmarked for HMRC.

What you get:

• No monthly fee
• Free UK bank transfers
• Savings Spaces for tax reserves
• Instant payment notifications
• Direct integration with Xero, FreeAgent, and QuickBooks
• FSCS-protected up to £120,000
• Overdraft available for companies trading 24+ months (£1,000–£50,000)
• No minimum balance

What to watch:

• No branch access — entirely app and online based
• International SWIFT transfers cost 0.4% + £5.50
• No in-app invoicing (use your accounting software instead)

Best for: One-person limited companies wanting the best free business bank account from a fully licensed UK bank.

Check for current Starling deals in The Self Employed Club →

2. Tide — Best for Directors Who Want Banking and Admin Together

The headline: Same-day account opening, built-in invoicing and expense tracking, up to 4% AER on the instant saver,

Tide is built specifically for small businesses and sole directors — and it shows. The app combines banking with invoicing, expense management, and a marketplace of financial products (lending, credit cards, savings) in one place. If you want to minimise the number of tools you use to run your company’s finances, Tide is worth serious consideration.

What you get:

• Free basic account (paid plans from £9.99/month for additional features)
• Same-day account opening — open today, use today
• Built-in invoicing and expense tracking
• Up to 4% AER variable on the Instant Saver
• Access to Tide credit card and lending marketplace
• FSCS-protected (via ClearBank)
• Register with Companies House through Tide (£14.99)
• Free MTD tool included

What to watch:

• Free plan limited to 50 free UK transfers per month (20p per transfer after that)
• Some features require a paid plan
• Customer support primarily through the app

Best for: Newly incorporated sole directors who want everything in one place and same-day setup.

Club deal: Members of The Self Employed Club can access an exclusive Tide deal. See what’s available →

3. Mettle (by NatWest) — Best if You Want Free Accounting Software Bundled In

The headline: Free business bank account with FreeAgent accounting software included — one of the best value combinations available to limited company directors.

Mettle is NatWest’s digital business bank account, and its headline feature is simple: FreeAgent included free for as long as you hold the account. FreeAgent normally costs £19/month and includes full bookkeeping, invoicing, VAT returns, and CT600 Corporation Tax filing — making this combination genuinely exceptional value for a one-person limited company.

What you get:

• No monthly fee
• FreeAgent accounting software included (normally £19/month) ✅
• FSCS-protected (via NatWest’s PRA licence)
• Integration with NatWest’s broader banking ecosystem
• Instant payment notifications
• Expense categorisation

What to watch:

• Fewer app features than Starling or Tide out of the box
• No savings pots or tax reserve features built in
• Limited to businesses with turnover under £2m

Best for: One-person limited companies who would otherwise pay for FreeAgent — this combination effectively gives you free accounting software and free banking.

The maths: FreeAgent costs £19/month as a standalone. Mettle is free. That’s £228/year in saved accounting software costs just from choosing the right bank account.

4. Monzo Business — Best for Directors Already Using Monzo Personally

The headline: Familiar interface, strong budgeting tools, free Lite plan, paid Pro plan (£9/month) for more features.

If you already use Monzo for personal banking, the transition to Monzo Business is frictionless — same app, same interface, separate account. The free Lite plan covers the basics well; the Pro plan adds virtual cards, tax pots, and accounting integrations.

What you get (Lite — free):

• Free UK bank transfers
• Receipt uploads and spending categorisation
• 24/7 customer support
• Pots for budgeting
• FSCS-protected

What you get (Pro — £9/month):

• Everything in Lite, plus:
• Xero, FreeAgent, and QuickBooks integration
• Tax pot (automatically sets aside a percentage of income)
• Virtual debit cards
• Invoice generation

What to watch:

• Accounting software integration requires the £9/month Pro plan
• No overdraft facility
• The tax pot feature on Pro is useful but the percentage is manually set

Best for: Directors already in the Monzo ecosystem who want consistent personal and business banking in one app.

5. Revolut Business — Best for Directors with International Clients or Suppliers

The headline: Multi-currency accounts, competitive FX rates, and a full banking licence from March 2026 bringing FSCS protection up to £120,000.

Revolut removed its free business plan in February 2026 — plans now start from £10/month. That changes the calculus for sole directors who just need basic UK banking — Starling or Tide are better value at that level. But if you deal with international clients, receive payments in multiple currencies, or pay overseas suppliers, Revolut’s multi-currency capabilities are hard to match.

What you get (from £10/month):

• Multi-currency accounts (25+ currencies)
• Competitive FX rates
• Expense management and virtual cards
• Accounting integrations (Xero, QuickBooks, FreeAgent, Sage)
• FSCS-protected up to £120,000 (full banking licence from March 2026)

What to watch:

• No longer free — plans start at £10/month
• Overkill for directors who only work domestically
• 20p per transfer after the free allowance on the basic plan

Best for: One-person limited companies with regular international payments or multi-currency needs.

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Side by Side: The Best Accounts for One-Person Limited Companies

What to Do When You Incorporate

The moment your company is registered at Companies House, open a business bank account. Don’t use your personal account even temporarily — mixing finances creates bookkeeping problems that take time to unpick.

What you’ll need to open an account:

• Your Companies House registration number
• Certificate of incorporation
• Director’s photo ID (passport or driving licence)
• Proof of address
• Description of your business activities

Digital banks (Starling, Tide, Monzo) typically approve accounts within hours. Traditional high-street banks can take 3-10 working days.

Once the account is open:

• Set up a savings space or pot for Corporation Tax (set aside 19-25% of profits)
• Set up a separate pot for VAT if you’re VAT registered
• Connect your accounting software
• Set your payday — transfer your director’s salary on a fixed date each month

Read => 8 Best Tools for Limited Company Directors in the UK
Read => Business Credit Cards for Sole Traders UK: The Honest Guide

Members of The Self Employed Club get exclusive deals on business banking, accounting software, and financial tools for limited company directors. Free to join, no catch. Browse all deals →

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