Business Finance Hub
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Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. Some links are referral links — we may earn a commission. You can check a firm’s details on the FCA Register.
FSCS protects eligible deposits up to £120,000 per person, per authorised institution.
Money guidance for UK small businesses, with the catches explained.
Running a small business means a steady stream of money decisions: which bank account, which card, how to manage cashflow and how to keep costs down.
This hub gathers our guides for sole traders, limited companies, freelancers, contractors and micro-businesses.
A. Understand and manage business finances
Business tools and calculators
Useful tools for managing business money.
Tax basics for sole traders and small companies
Sole trader or limited company?
- Sole trader: you and the business are the same in law. You pay Income Tax and National Insurance on your profits through Self Assessment.
- Limited company: a separate legal entity that pays Corporation Tax on its profits. Directors usually take money out as salary or dividends, each with its own tax rules.
- Set tax aside as you go: move a share of every payment into a separate savings pot. That way the Self Assessment bill, and any payments on account, won’t catch you out. An accountant can help you pick the right share.
Making Tax Digital for Income Tax
Making Tax Digital (MTD) for Income Tax means keeping digital records and sending quarterly updates through compatible software. It applies to sole traders and landlords, not limited companies. You must join based on your qualifying income from self-employment and property:
- Over £50,000 on your 2024/25 tax return: from 6 April 2026.
- Over £30,000 on your 2025/26 tax return: from 6 April 2027.
- Over £20,000 on your 2026/27 tax return: from 6 April 2028.
Source: GOV.UK, check if you’re eligible for Making Tax Digital for Income Tax (checked 4 October 2026).
Decision guides
B. Choose a business financial product
Quick routes
Business bank accounts
Compare business accounts for sole traders, limited companies, freelancers and startups — including fees, limits, integrations and catches.
- Business bank accounts compared
- Small business bank accounts
- Business accounts for sole traders
- Business accounts for limited companies
- Basic business bank accounts
- Business accounts with no fees
- Business accounts with cashback
- Business accounts with accounting integrations (Xero, QuickBooks)
- Business accounts for startups
- Business accounts for contractors
- Business accounts for online sellers
- Business banking FAQs
- Company bank accounts
Business credit cards
Find business credit cards for small businesses, sole traders and limited companies — including cashback, rewards, fees and eligibility rules.
The catch: business banking
Business accounts vary a lot on:
- monthly fees
- transaction limits
- card fees
- ATM fees
- foreign-currency fees
- accounting integrations
- overdraft availability
- eligibility rules
The biggest catch:
Some “free” business accounts become expensive once you start growing.
The catch: business credit cards
Business credit cards often include:
- annual fees
- higher APRs than personal cards
- strict eligibility rules
- limited rewards
- no Section 75 protection
Who this hub is for
- Sole traders who need a simple business account
- Limited companies looking for low-fee banking
- Freelancers and contractors managing irregular income
- Startups needing a modern, app-based business account
- Small businesses comparing credit cards
- Anyone wanting clear, honest business-finance guidance
Who should avoid this hub
- Medium or large companies needing advanced treasury services
- Businesses requiring complex multi-currency accounts
- Firms needing specialist lending or invoice-finance advice
- Anyone looking for regulated financial advice
Business Finance FAQs
Do sole traders need a business bank account?
Not legally. But many providers require one, and it keeps your tax records clean.
Can I get a business credit card as a sole trader?
Yes. Most UK providers accept sole traders.
Which business bank accounts integrate with Xero?
Starling, Tide, Revolut, Monzo Business and several high-street banks.
Are business accounts free?
Some are free. Others charge monthly or transaction fees.
Do business credit cards affect personal credit?
Some do, especially for sole traders.
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