Which Business Account Suits Contractors?
UK contractors have specific requirements that differ from other small business owners. HMRC's Making Tax Digital obligations, the need to keep business and personal finances separate for IR35 purposes, and often irregular income patterns all influence which business account works best.
The best accounts for contractors offer: no or low monthly fees, simple invoicing tools, easy integration with accounting software such as FreeAgent or Xero, and fast account opening.
| Provider | Monthly Fee | Invoicing | Accounting Integration | FreeAgent |
|---|---|---|---|---|
| Tide | Free (basic) | ✓ Built-in | Xero, QuickBooks | ✓ |
| Starling | Free | Basic | FreeAgent, Xero | ✓ |
| Wise Business | Free (basic) | ✗ | Xero, QuickBooks | ✗ |
| Revolut Business | From £0 | ✓ | Xero, QuickBooks | ✗ |
| ANNA Money | From £0 | ✓ AI-powered | Xero, QuickBooks | ✗ |
Tide for Contractors
Tide is widely used by UK contractors and sole traders. Its free account includes built-in invoicing, expense categorisation and direct accounting software integrations. The paid tiers (Plus at £9.99/month, Pro at £18.99/month) add features including free cash deposits and dedicated support.
For IR35 compliance purposes, Tide's clear transaction history and invoicing tools make it straightforward to demonstrate the separation of business income.
Open a Tide Business Account
Free account with invoicing built in. Open in minutes online.
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Starling for Contractors
Starling Bank's business current account is free and includes a real-time spending feed, Spaces (segregated pots for tax saving), and direct FreeAgent integration. For contractors who want to ring-fence their VAT and corporation tax in a Spaces pot, Starling makes this straightforward.
Open a Starling Business Account
Free business current account with Spaces and FreeAgent integration.
Affiliate link — we may earn a commission. Not financial advice.
Verdict for Contractors
For most contractors, Tide or Starling are the strongest starting points. Tide edges ahead on invoicing tools; Starling on FreeAgent integration and the tax Spaces feature. If you invoice international clients regularly, Wise Business is worth adding for its multi-currency capability.