Business bank accounts and cards for UK limited companies
Facts checked against each provider's website on 22 October 2026. Fees change, so confirm before you apply.
A limited company is a separate legal person, so its money belongs to it, not to you. Run it through an account in the company's name. Paying company costs from a personal account, or personal costs from the company, builds up a director's loan account. If that account is overdrawn 9 months after your year end, the company pays s455 tax at 35.75% on loans made since 6 April 2026. Our free director's loan calculator shows what that would cost.
What to check before you open a business account
- Deposit protection. Money at a UK-authorised bank is covered by the FSCS up to £120,000 per eligible depositor per banking licence. A limited company counts as its own depositor. An e-money account is safeguarded instead, which is not the same as FSCS protection.
- Monthly fee against what's included. A free plan with 5 transfers a month can cost more than a paid plan if you pay suppliers weekly.
- Cash and cheques. If customers pay you in cash, check the deposit fee. Post Office deposits are often charged as a percentage.
- Accounting software. A bank feed into Xero, QuickBooks or FreeAgent saves bookkeeping time and supports Making Tax Digital record-keeping.
- More than one director. Some accounts only let one person log in. Check user access and permissions if two directors share the admin.
- Credit when you need it. Ask whether overdrafts or loans are offered, and whether a director has to give a personal guarantee.
Business current accounts compared
| Provider | Monthly fee | UK transfers | Cash deposits | Protection | Worth knowing |
|---|---|---|---|---|---|
| Starling Bank | No monthly fee | No fees on UK payments in or out | Post Office: 0.7% of the deposit, minimum £3 | FSCS-protected UK bank | Up to 6 free ATM withdrawals a day (£300 daily limit) |
| Tide | Free, Smart £12.49, Pro £27.49 or Max £69.99 a month | 5 a month on Free, 30 on Smart, unlimited on Pro and Max | Cash and cheque deposits on all plans | Accounts provided by ClearBank; FSCS up to £120,000 | 2.75% fee on card spending abroad on the Free plan; 0% on paid plans |
| Monzo Business | Lite free, Pro £9 a month (first month free), Team from £25 a month | See plan details | Cash and cheque deposits available; see Monzo fee information | FSCS up to £120,000 | Three plans; compare features on Monzo's plans page |
| Mettle (NatWest) | See Mettle's fee information | See Mettle's fee information | See Mettle's fee information | Provided by National Westminster Bank plc; FSCS up to £120,000 | Sole traders and limited companies with up to two owners |
| Revolut Businessreferral link | Paid plans; see Revolut's current pricing | Included transfers depend on the plan | Check before opening if you take cash | Revolut Bank UK became a fully licensed UK bank in March 2026; eligible deposits held with the bank are FSCS-protected up to £120,000 | Multi-currency accounts and card controls. Accounts were moved to the bank in phases, so check yours in the app |
Sources: each provider's pricing or account page, checked 22 October 2026. "See fee information" means the provider did not show the figure on the page we checked. We'd rather say that than guess.
Business credit cards: what to check
- Who is liable. Many business cards for small companies need a personal guarantee from a director and a credit check on them. Read the terms before you apply.
- Pay in full, or know the rate. Interest is charged on balances you don't clear. The rate you're offered depends on your application, not the headline.
- Cashback and fees. Compare the annual fee with the cashback at your real monthly spend, and check foreign transaction fees if you buy abroad.
- Employee cards and controls. Separate cards with spending limits make expense claims and VAT receipts easier to manage.
Referral link
Capital on Tap
- Standard card: no annual fee, uncapped 1% cashback on card spending
- Pro: £299 a year, with higher cashback on preloaded spending
- Credit limits up to £250,000, no foreign exchange fees (as advertised on 22 October 2026)
The tax side of paying by card
- Personal spending on a company card goes to your director's loan account, or becomes a taxable benefit if the company pays it for you. Check either with the director's loan calculator or the benefit-in-kind calculator.
- VAT can only be reclaimed with a valid VAT invoice, so a card statement isn't enough on its own. Watching your turnover against the £90,000 threshold? Use the VAT threshold monitor.
- Cashback on business card spending is generally treated as a discount on the purchase rather than income. Ask your accountant how to record it.
Questions
Does a limited company have to have a business bank account?
No law names a business bank account. But the company's money legally belongs to the company, and most personal current accounts don't allow business use in their terms. In practice every limited company needs one, and keeping the two separate is the simplest way to keep your director's loan account and your accounts straight.
Is my company's money protected if the provider fails?
At a UK-authorised bank, eligible deposits are protected by the FSCS up to £120,000 per depositor per banking licence, and a limited company is a depositor in its own right. Brands that share a licence share one limit. E-money institutions safeguard your money instead, which protects it differently. If you hold more than £120,000, spreading it across banks with separate licences keeps it all covered.
Can I use my personal credit card for company spending?
You can, and claim it back as an expense, but every claim needs receipts and a record in your director's loan account. A company card in the company's name keeps company spending in the company's books from the start.