Comparison
Best business bank accounts for freelancers
Freelancing has a specific shape: a handful of clients, payment by bank transfer, no cash, no staff, and a tax bill that arrives twice a year and always feels like a surprise.
Our picks
Monzo Business
First in the UK for service, Making Tax Digital software on the free tier, and 1.30% on your balance. Everything a freelancer needs, nothing they do not.
Mettle by NatWest
Free forever, 1.46% on savings, and a full FreeAgent subscription included — which for a freelancer who files their own return removes a real annual cost.
ANNA Money
A live estimate of what you owe HMRC, updating as money moves, plus the best receipt handling here. But the balance is safeguarded, not FSCS-protected.
Compared
Scores use our seven weighted criteria. Run your own figures on the true cost calculator.
| Account | Monthly | Interest | Tax tools | Invoicing | Score |
|---|---|---|---|---|---|
| MoMonzo Business | £0 – £25 | 1.30% – 3.25% | MTD on all tiers | Pro tier | 4.3 |
| MMettle by NatWest | £0 | 1.46% | Free FreeAgent | Via FreeAgent | 3.9 |
| SStarling Business | £0 | None | Free integrations | Available | 4.2 |
| AANNA Money | £0 + tiers | 1.00% | Live HMRC estimate | Built in | 3.4 |
| TTide | £0 – £69.99 | 2.00% free tier | Sage on free plan | Built in, strong | 3.8 |
The four things that actually matter
1. Whether it pays you on your tax reserve
Freelancers hold money that is not theirs — income tax, and VAT if registered. That reserve sits in the account for months. At Mettle it earns 1.46%, at Monzo 1.30%, at Starling nothing at all. On a £15,000 reserve that is a £220 a year difference for no effort.
2. Whether it handles the tax
Making Tax Digital for Income Tax now catches sole traders with qualifying income above £50,000, falling to £30,000 in April 2027. Monzo includes MTD software on every tier including free; Mettle bundles a full FreeAgent subscription; ANNA maintains a live estimate of what you owe. See which accounts include MTD software.
3. Whether it invoices
Tide and ANNA both include invoicing on their free plans, and Tide matches incoming payments to invoices automatically because it is the account. Monzo includes invoicing on Pro at £9 a month. If you already use accounting software, none of this matters.
4. Whether your structure qualifies
Working through a limited company narrows the field. Monzo requires all directors to be UK resident, Mettle restricts owner numbers, HSBC Kinetic is single-director only. Sole traders face almost none of these restrictions.
What freelancers do not need
Cash handling, branch access, multi-user permissions, expense cards. Most business banking marketing is aimed at businesses with staff and premises. Ignore it and choose on cost, interest and tax tooling.
Contractors working through an umbrella
If you contract through an umbrella company you are an employee of that umbrella and do not need a business account at all. If you run your own limited company — a personal service company — you do, and the limited company eligibility rules above apply. See sole trader or limited company.
Common questions
What is the best bank account for a freelancer?
Monzo for most: first in the UK for service, MTD software on the free tier and 1.30% on your balance. Mettle is better value if you fit its eligibility, adding a free FreeAgent subscription and 1.46%. ANNA has the best tax tooling but no FSCS protection on the balance.
Do freelancers need a business bank account?
Not legally as a sole trader, but nearly every personal account’s terms prohibit business use. If you work through a limited company, the company’s money is not yours and it needs its own account.
Which account is best for freelancer tax?
ANNA has the best live tax estimate, on its free tier. Mettle includes a full FreeAgent subscription free. Monzo includes MTD software on every tier. All three remove a separate software cost for a self-filing freelancer.
Should a contractor use a business account or personal account?
If you contract through your own limited company, a business account is effectively required. Through an umbrella company you are an employee and need nothing extra.