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
- No monthly account fee for 12 months, then £10.
- Free HMRC-recognised Making Tax Digital software if your business comes under new HMRC rules.
Benefits of a sole trader bank account with Lloyds
Why open a sole trader business bank account?
A dedicated business bank account for sole traders and freelancers makes self-employed finances simpler. Focus on the work, not the paperwork.
Be ready for Making Tax Digital with a sole trader bank account
Can I apply for the sole trader business account?
What to consider when opening a sole trader business bank account
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.
Frequently asked questions
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It’s highly recommended. You could use a personal account, but mixing business and personal transactions makes it harder to track profit and loss, increases the chance of missing deductible expenses, and can complicate your self-assessment for income tax.
A business account also helps you build a commercial credit profile, which can be important if you apply for lending later.
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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 account – if this happens, it usually takes 7 days to set up your bank account.
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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
- a UK driving license or passport
- your name, date of birth and three-year personal address history (including month and year of moving dates)
- mobile number and email address for everyone connected to the account
- your business name, address, details of your activities and estimated annual turnover.
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A personal account is exactly that - designed for personal use. A dedicated sole trader bank account is usually the better option for your business. With a sole trader business bank account, you can see exactly what’s happening with your business finances, making it easier to track income and expenses and prepare for your income tax self assessment. And it can help you build a commercial credit profile, which may be important if you apply for lending later.
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HMRC is digitising Income Tax reporting for sole traders and individual landlords already registered for Self Assessment. If your qualifying income for the 2024/25 tax year was over £50,000, there’s new rules for how you report information for Income Tax.
Instead of submitting a single Self Assessment tax return once a year, sole traders and landlords with qualifying income will 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 Business Account from Lloyds can help you follow these new rules. If you open a Lloyds Business Account and your business meets the Making Tax Digital for Income Tax requirements, you’ll get access to our new accounting tool. It’s HMRC-recognised and designed to make it easier for you to manage your tax obligations.
And, if you’re self-employed, there are more benefits to having a sole trader bank account with Lloyds Bank:
- no account fee for the first 12 months – then £10 a month
- free debit card
- access to lending options
- business support resources
- make and receive international payments online or using the business banking app
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A dedicated sole trader bank account keeps your business income and personal spending in separate places, which makes Self Assessment significantly easier. When tax time comes around, your business transactions are already in one place, making it straightforward to calculate turnover, expenses, and profit – instead of looking through 12 months of mixed statements.
Lloyds Business Account holders also get free Making Tax Digital software, automatically available if your business falls under the new HMRC rules. It’s a practical head start for self-employed people navigating the shift.
It won’t file your return for you, but it gives you the clean financial record HMRC expects.
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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 everyday spending. A sole trader business account is built for how a business actually runs: separating your income from your personal finances, making expenses easier to track and giving you a professional payment record from day one.
Sole traders don’t need to have a separate account. But mixing business and personal money is one of the most common headaches experienced by new business owners. A new business bank account makes the distinction clear from the start and keeps it that way.
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Yes. You can easily switch banks to a Lloyds Bank sole trader business account using the Current Account Switching Service (CASS). Once you’ve given us your details, you can sit back and we’ll manage the rest for you.
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If you’ve already started an online application, you can continue or check the status of your application at any time using the log on button in your welcome email, which you’ll get once you’ve shared your personal details.
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Find out more about our Business Account fees and charges.
Lloyds Business Bank Account fees and charges. Payment type
Charges
Payment type
Introductory offer
Charges
No monthly account fee for 12 months if it’s your first business account with us
Payment type
Monthly account fee
Charges
£10 after 12 months
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 / £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.
Get a bank account that works for your business
Independent service quality survey results
Business current accounts
Published February 2026
As part of a regulatory requirement, an independent survey was conducted to ask approximately 1,200 customers of each of the 17 largest business current account providers if they would recommend their provider to other small and medium-sized enterprises (SMEs*). The results represent the view of customers who took part in the survey.
Overall service quality
We asked customers how likely they would be to recommend their business current account provider to other SMEs.
*SMEs include businesses, clubs, charities and societies with an annual turnover/income of up to £25m (exclusive of VAT and other turnover-related taxes).
Ranking
The requirement to publish the Financial Conduct Authority Service Quality Information for business current accounts can be found here