A new UK business should open its account the week it starts existing, and in 2026 the smart order depends on one number: Companies House now charges £100 to register a company, double what it cost before February. If you have not incorporated yet, Tide will register the company for £14.99 with that fee included, which makes the account decision and the formation decision the same decision. If the company already exists, or you are staying a sole trader, the choice opens up. Both routes are below.
Not settled on a name? Run it through our free business name check first. It looks across Companies House, trademarks, domains and social handles in one pass, before you commit £100 to the wrong name.
At a glance · figures checked 4 July 2026
Account
Monthly fee
Best for
Cash deposits
Where it meters
Tide
Free plan
Forming the company and account together
Post Office (min £2.50) or PayPoint (3%)
5 transfers, 3 invoices/mo
Starling Bank
Free
The best long-term home
Post Office, 0.7% (min £3)
No usage limits
Mettle
Free
Accounting sorted from day one
Not supported
No usage limits
Monzo Business
Lite free
Trying before committing
PayPoint or Post Office, £1 per deposit
Invoicing & Pots need £9 Pro
The shortlist for the starting line
01
Tide
Free plan
Best if the company does not exist yet
Limits
5 transfers, 3 invoices/mo
Invoicing
3 free invoices a month on the free plan
Cash
Post Office (min £2.50) or PayPoint (3%)
Tide's formation package registers your limited company for £14.99 all in, swallowing the £100 Companies House fee, and the account is open when the certificate lands, usually within 48 hours. One honest limit: it only forms companies with a single director who is the sole shareholder, so co-founders must register elsewhere and then pick any account on this page.
E-money institution, not a bank. Accounts powered by ClearBank carry FSCS protection up to £120,000; accounts powered by PPS are safeguarded instead. Tide confirms which applies when you open the account. Post Office deposits cost £2.50 up to £500, then a percentage of the excess (0.99% on the free plan, 0.5% on paid plans). PayPoint costs 3% of the deposit, £10 minimum, £500 daily maximum.
If the company already exists, Starling is the strongest long-term home: free, FSCS-protected to £120,000, free invoicing, and the app that the others get compared to. It has no formation deal and no signup perks, which tells you something about how it competes: on the account itself.
Licensed UK bank. Eligible deposits protected up to £120,000 by the FSCS. Deposit cash at any Post Office for 0.7% of the amount, minimum £3. Sole trader accounts are capped at £5,000 per day and £20,000 per calendar year, so heavy cash businesses will hit the ceiling.
Basic invoicing free; quotes via Mettle+ at £4/month
Cash
Not supported
A first-time founder's biggest hidden cost is accounting. Mettle answers it directly with free FreeAgent included, so quarterly filings, expenses and invoices are handled from day one without a software subscription. No cash deposits and a two-owner maximum are the boundaries to check first.
Provided by National Westminster Bank plc trading as Mettle. Eligible deposits protected up to £120,000 by the FSCS. Mettle does not take cash deposits. If you handle cash at all, pick Starling, Tide or Zempler instead.
Monzo Lite is free, takes minutes to open, and the first month of Pro costs nothing, so a new business can trial Tax Pots and invoicing before deciding whether they are worth £9 a month. If the venture stalls, nothing was spent; if it grows, the upgrade is one tap.
Licensed UK bank. Eligible deposits protected up to £120,000 by the FSCS. £1 flat fee per deposit at PayPoint or the Post Office. Monthly deposit limits: £3,000 for sole traders, £10,000 for limited companies.
Check the name across Companies House, trademarks, domains and socials in one pass with the name-check tool.
Decide the structure. Sole trader needs no registration and no fee; a limited company costs £100 at Companies House, or £14.99 through Tide's package.
Open the account in the company's name (or yours, as a sole trader). Same-day approval is normal with the providers above.
Register with HMRC. Corporation Tax within 3 months of trading for companies; Self Assessment by 5 October following your first tax year for sole traders.
Wire in the accounting before the first invoice, not after the fiftieth. FreeAgent via Mettle, or Xero and QuickBooks connections on the others.
The mistake that costs new businesses most
It is not picking the wrong account; the free ones are all good and switching is easy. It is running the business through a personal account for the first year. That mixes money HMRC expects you to separate, breaches most personal accounts' terms, and turns your first tax return into archaeology. Every account on this page opens in under a day. Open one before the first pound arrives.
Questions people actually ask
When should a new business open its account?
A limited company should open its account as soon as the incorporation certificate arrives, because the company's money must be kept separate from yours by law. A sole trader can start trading first and open the account in the same week; it takes minutes.
How much does it cost to register a company in 2026?
Companies House charges £100 for digital incorporation, doubled from £50 on 1 February 2026. Tide currently absorbs that fee inside a £14.99 formation package if you open its account, which is the cheapest legitimate route.
What do I need to open a business account for a new company?
Photo ID, proof of address, your company number from Companies House, and a description of what the business does. App-based providers usually decide the same day; high-street banks can take weeks.
Should a new business pay for a business account?
Almost never in year one. Starling, Mettle, Tide and Monzo Lite are free and cover everything a new business needs. Pay only when a specific feature, such as Monzo's Tax Pots or Tide's higher limits, is already saving you more than it costs.
Can I open a business account before registering the company?
As a sole trader, yes, immediately. For a limited company you need the company to exist first, since the account is opened in its name. Tide and ANNA collapse the two steps by registering the company and opening the account in one application.
Figures checked 4 July 2026; confirm details with the provider before applying. We may earn a commission through links on this page.