What UK business owners actually need from an app-only account
Most people searching for an online business bank account in the UK are not chasing a branch. They want an account opened in an afternoon, a card that works abroad, and a feed that pushes transactions straight into their bookkeeping software. The friction usually shows up somewhere else: a transfer fee nobody mentioned, a cash deposit limit that does not suit a market trader, or a tax bill sitting in the same pot as rent money.
Three patterns come up again and again.
A sole trader billing four or five clients a month needs an account that separates business spending from personal life and produces something an accountant can read. A limited company director has a slightly different problem. The account has to cope with director's loans, PAYE payments and Companies House deadlines without a spreadsheet rescue at year end. Then there's the cash-heavy business, the café, the barber, the weekend market stall, where an app-only account can look perfect until the first £600 in notes needs paying in.
Fees are the other trap. A £0 monthly fee is not the same as a cheap account. Some providers charge per transfer, per cash withdrawal, or a percentage on card spending abroad. Others charge a monthly subscription but leave domestic payments alone. Which one costs less depends entirely on how money arrives and leaves your business.
Protection matters too, and it is easy to skip past in the excitement of a fast approval. A full banking licence brings deposit protection under the Financial Services Compensation Scheme. An electronic money institution safeguards client funds in a different way, which is legitimate but not identical. Worth knowing before you move your main operating balance across.
How the main UK options compare
The table below reflects entry-level and paid tiers as currently advertised by each provider. Prices change, so confirm on the provider's own pricing page before you apply.
| Provider | Monthly fee | Best suited to | What stands out | Worth checking |
|---|
| Starling Business | £0 | Sole traders and limited companies wanting one straightforward account | Unlimited UK Faster Payments at no charge, accounting software connections, Post Office cash deposits | Cash deposit charges, no named relationship contact |
| Tide | £0, £12.49 + VAT, £24.99 + VAT, £69.99 + VAT | New companies and sole traders who want extras on top | Same-day approvals are common, invoicing and accounting add-ons | The £0 tier charges per transfer and per ATM withdrawal, FX fees on card spend |
| Monzo Business | Lite £0, Pro £9, Team £25 | Service businesses that want tax pots and simple bookkeeping | Pots for tax and VAT, receipt capture, clean app | Invoicing and deeper integrations sit on paid tiers |
| Revolut Business | Basic from £10, Grow from £30, Scale from £90 | Businesses with overseas clients or suppliers | Multi-currency balances, competitive FX, payment links | Subscription fees, fair usage limits on transfers |
| ANNA Money | Pay as you go £0, £14.90 + VAT, £49.90 + VAT | Sole traders and micro-companies who want admin handled | Invoicing, tax reminders, chat-based support | Fee structure on the entry tier, protection model |
Read that table as a starting point rather than a ranking. Starling and Tide both offer a business bank account with no monthly fee, but the cost profile underneath is different. Starling keeps domestic payments cheap and charges for cash handling. Tide keeps the headline price low and charges per transfer, so a business receiving twenty inbound payments a month will feel it.
Monzo Business is the one most likely to appeal if your pain is year-end chaos. Tax pots ring-fence money as it arrives, which solves a real problem for people who get paid in irregular lump sums. The paid tier is where invoicing and fuller software connections live, so budget for £9 a month rather than assuming the £0 tier covers everything.
For anyone invoicing clients in euros or dollars, a multi-currency business account changes the maths. Revolut Business charges a subscription but tends to be cheaper on conversion than a high street bank's standard rate. A freelance consultant in Bristol billing two overseas clients a month may find the £10 entry plan pays for itself in one transfer. A domestic-only plumber will not.
ANNA Money sits in a similar space to Tide, aimed at people who would rather not think about paperwork. The trade-off is that you are paying for admin convenience as much as for banking.
Sole traders, limited companies and cash-heavy trades
Sole traders can generally open an account with just HMRC registration and proof of address, which makes the app-based providers quick. Limited companies need the company registration number and details of directors and people with significant control. Most applications take minutes rather than days, though identity checks can add a short delay.
The cash question deserves its own paragraph. App-only accounts are built for digital money, and physical cash is an afterthought bolted on through the Post Office or a PayPoint. If you take more than a few hundred pounds in notes each week, price out the deposit fee before you commit. A slightly higher monthly fee with cheaper cash handling often wins.
One scenario worth recognising: a wedding photographer in Leeds moved from a personal account to a paid tier at £12.49 plus VAT, mostly for unlimited invoicing and cleaner records. She had been paying an accountant to untangle a year of mixed personal and business spending, and the subscription cost less than that clean-up. That is the pattern, not a rule. Some businesses are genuinely fine on a £0 tier.
Opening one without wasting a week
Application order matters more than most guides admit.
- Register with HMRC as a sole trader, or confirm your company details on Companies House, before you start any application.
- Write down your monthly money flow: inbound client payments, outbound supplier payments, cash deposits, foreign currency, ATM use. Estimate counts, not feelings.
- Run those numbers against two or three providers' fee pages. Ignore the headline monthly fee on the first pass and look only at per-transaction charges.
- Check the protection model. Search the provider's name plus "FSCS" or "safeguarded funds" and read the explanation in their own legal pages.
- Confirm the accounting software link. Xero, QuickBooks, FreeAgent and Sage are the common four, and most providers publish which ones they support.
- Apply with the same business name and address that appear on your HMRC or Companies House records. Mismatches are the usual cause of a stalled application.
- Keep the old account open for one full billing cycle. Direct debits, payroll and client payment details take longer to migrate than the app suggests.
Local resources help here. Business support services run by local councils and chambers of commerce often publish plain-English guides to business banking, and accountants will tell you which providers they find easiest to work with at year end. That last point is underrated. An accountant who can pull your transactions in automatically saves you money twice.
What to do next
Compare three providers against your own transaction counts rather than someone else's review. Then open one account, run it for a quarter, and check the actual fees on your statement instead of the advertised ones. Most people discover their true cost profile in month two, and switching is easier at that point than after a year of Direct Debits. If your business takes cash, handles multiple currencies, or employs staff, prioritise those three features over cashback offers and sign-up perks.
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