Simple Business Accounts (and virtual addresses)

autumn office Heather Stillufsen

Heather Stillufsen

If you run a tiny business, you need to open a business account. Although the law says that sole traders can use personal accounts, nearly all UK banks have rules to say you can’t.

Virtual business addresses

Sometimes for privacy (or if you rent where landlords have rules), you may need a virtual business address (some banks don’t allow this, so check before applying). Some also redirect emails and post as well.

Royal Mail PO boxes are no longer allowed for companies.

Some options for virtual addresses are:

All virtual addresses (and business bank accounts) need you to verify your ID. You will need to upload a photo of your passport, photo ID card or driving license. Plus proof of address bank statement, council statement or recent utility bill). Plus (for bank accounts) proof of registration with HMRC

Sole trader start-ups may qualify for Universal Credit. The laws are strict to prove you are ‘gainfully self-employed’ (providing evidence of ongoing work to build a business). But if you qualify, you could be supported for up to a year with income and rent/mortgage help.

Best simple ethical business accounts

You can switch from existing business accounts using Current Account Switch Service, a free trusted service where all transactions are transferred over in a week or two.

If you want a simple app-based business account, the four main choices are:

If you prefer a more traditional business current account:

  • Zempler offers a simple sole trader and other business accounts which you can run online or by app. Fully regulated, and likely the best choice for start-ups on a budget. You can also pay in cash at local post offices.
  • Enterprise Credit Union (Merseyside) offers business account options.
  • The Cumberland (Cumbria, Northumberland, southwest Scotland) offers current and business savings accounts (profits help reforestation, and there are in-person branches).
    The Co-operative Bank offers simple business accounts.
  • Reliance Bank Ltd (profits help Salvation Army) also offers business savings accounts.
  • Triodos (profits help clean energy, social enterprises and organic farming) offers business savings accounts.

Accepting money online

You can set up a business Paypal account, then ‘drop funds’ into your business account (you must register using your personal name to avoid getting banned). You can set up a simple free professional email at Proton.

GoCardless is a simple alternative to Paypal. Just send a payment link, and customers pay from their bank for instant confirmation in hours. Fees are around 1% plus 20p per transaction, with 25% discount for some charities.

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