It’s a question we hear often from new and seasoned business owners alike:

“Do I actually need a business bank account?”

The answer? It depends on how you trade.

Limited Company? Yes, You Do.

If you operate as a limited company, you’re legally required to have a business bank account in your company name.

Why? Because mixing personal and business finances can lead to trouble. HMRC may treat all income as if it’s been withdrawn as dividends. That could result in a tax bill you didn’t expect—and don’t want.

Keeping things separate protects you, your company and your tax position.

Sole Trader? Not Required, But Highly Recommended.

If you’re a sole trader, you’re not legally obliged to have a business bank account.
But here’s our advice: get a separate account anyway.

Even if it’s just another personal account, separating your business finances makes life easier. It simplifies bookkeeping, helps you track income and expenses, and keeps all business info in one place.