Change your business address
If you're a full access user, you can update your business, registered, mailing and personal addresses within Online for Business and the Business banking app.
Sole trader bank account
Big rewards if you apply for a sole trader business account by 30 November.
- Get a £200 boost, free Xero subscription for 6 months, and a £200 Amazon gift card.
- Free HMRC-recognised Making Tax Digital software if your business comes under new HMRC rules.
Benefits of a sole trader bank account with Lloyds
Self-employed or run your own business as a sole trader or freelancer? There's lots of reasons to get a sole trader bank account with Lloyds.
Open a sole trader bank account. Enjoy the extras.
Free MTD software, 6-months' free Xero and up to £400 in rewards if you open a sole trader account.
Why open a sole trader business bank account?
Make self-employed finances simpler with a dedicated bank account for your sole trader or freelance business.
Open a sole trader bank account online or in the app
Whether you’re a sole trader, freelancer or self-employed, you can apply online and your account could be open in as little as 24 hours.
Can I apply for the sole trader business account?
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Can I open a sole trader bank account if I’m a freelancer?
Yes, a sole trader account can help freelancers manage their business and keep important payments and expenses all in one place.
What should I consider when opening a sole trader business bank account?The right bank account makes your bookkeeping simpler, your tax return faster, and your financial picture clearer. Here's what to weigh up before you open a business account for your sole trader or freelancer business.
- Fees and charges
No monthly fee might not mean the best value. Compare the full pricing - especially if your income changes month to month.
- Ways to bank
Choose a business account that works for you - online, in app, or in branch if you need it.
- Support when you’re going solo
Self-employment can be unpredictable. Check if your bank offers loans and business overdraft - before you need them.
- Making Tax Digital readiness
As Making Tax Digital for Income Tax becomes mandatory, your bank account and accounting software will need to work together. Discover our free accounting tool Making Tax Digital for Income Tax
How long does it take to open my sole trader bank account?It takes around 20 minutes to apply for a sole trader bank account with Lloyds, and you could go from application to account in just 24 hours*.
In some cases, we may need extra information to open your sole trader account – if this happens, it may take longer to set your account up.
What do I need to apply for a sole trader bank account?Ready to apply for a sole trader business bank account? Get your documents ready beforehand to save time.
You’ll need:- a copy or photograph of your signature on a white background
- a UK driving licence or passport
- your name, date of birth and three-year personal address history (including month and year of moving dates)
- UK mobile number and email address for everyone connected to the account
- your business name, address, details of your activities and estimated annual turnover.
How do I open a sole trader bank account?If the estimated turnover of your self-employed business is under £3 million, you can apply online or in the app. It usually takes around 20 minutes, and your sole trader bank account could be open in as little as 24 hours*. We’ll keep you updated on the progress of your application. If we need extra information from you, it may take a little longer to open your account.
Applying in the app?
Download from the Apple App Store or Google Play store, or get your download link by text. Send me a download linkTurnover of £3 million to £25 million? Get started with Lloyds
Can I switch to a sole trader business account?Yes, you can switch banks to a Lloyds sole trader business account using the Current Account Switching Service (CASS). Once you’ve given us your details, we’ll manage the rest for you.
Find out more about switching accounts
Can I return to my application to continue or check the status?If you’ve already started an online application for a sole trader bank account, you can continue or check the status of your application at any time. Just use the link in the resume application email, which you’ll get once you’ve shared your personal details.
- Fees and charges
Take your business further with a bank account from Lloyds
Frequently asked questions
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A sole trader is someone who is self-employed and runs their business as an individual, for example, a freelancer. The owner and their business are considered the same legal entity. This means a sole trader gets to keep all profits made after tax but has full personal liability to cover any debts.
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It’s recommended to have a business account as a sole trader or freelancer. With a sole trader business account, you can see exactly what’s happening with your finances, making it easier to track income and expenses and prepare for your Income Tax Self Assessment. It can also help you build up your credit report, which may be important if you apply for lending later.
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No, you don’t need a separate sole trader bank account for tax purposes, as HMRC sees you and your business as the same entity.
But HMRC is digitising Income Tax reporting for sole traders already registered for Self Assessment. If your qualifying income for the 2024/25 tax year was over £50,000, there are new rules for how you report information for Income Tax.
You’ll need to:
- keep digital records of income and expenses in software that works with HMRC’s Making Tax Digital for Income Tax service
- send quarterly updates that summarise income and expenses
- submit tax returns by 31 January.
A sole trader business account can help you comply with these new rules. You’ll get free Making Tax Digital software, automatically available if your business falls under the new HMRC rules. It’s HMRC-recognised and designed to make it easier for you to manage your tax obligations.
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What is the difference between a personal account and a sole trader bank account? expandable section
A personal account is designed for personal use and everyday spending. A sole trader business account is built for how a business actually runs: separating your income from your personal finances. This makes expenses easier to track and gives you a professional payment record from day one.
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Lloyds Business Bank Account fees and charges. Payment type
Charges
Payment type
Monthly account fee
Charges
Free for the first 12 months, then £10 a month.
This introductory offer on the monthly account fee is only available for first-time Lloyds Business Accounts.Payment type
Electronic payments in2
Charges
Included at no extra cost
Payment type
Electronic payments out2
Charges
Included at no extra cost
Payment type
Cash payments (in or out)
Charges
£0.85 for every £100 at an Immediate Deposit Machine / £1.60 for every £100 over the counter
Payment type
Cheques (in or out, any amount)
Charges
£0.85 at an Immediate Deposit Machine or through the app / £1.20 over the counter
Payment type
Credit paid in at branch or ATM
Charges
£0.85
Payment type
Credit paid in at an Immediate Deposit Machine, Automated Deposit Machine, through the app
Charges
No fee
Payment type
BACS
Charges
File submission: £5.50
BACS Item: £0.15 (a set up fee may apply)
Payment type
CHAPS
Charges
£30
Payment type
Sending and receiving money abroad
Charges
Payment type
Balances below £0 (going overdrawn)
Charges
Payment type
Other account services
Charges
No credit interest is payable on this account.
See the full account rates and charges (PDF, 222KB) and product terms and conditions.
Estimate with our calculator how much your business account could cost per month after the first year.
