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When you run your own business as a sole trader you will no doubt have a long to do list and effectively managing your business finances should be near the top. One of the smartest steps you can take is to open a business bank account.
It’s not a legal requirement for sole traders to have a business bank account but the benefits are undeniable. Separating your business and personal bank accounts provides clarity, simplifies expense tracking, improves cash flow visibility, helps with tax preparation and makes managing your business finances far easier.
There are many business bank accounts available and it can be hard to know which one is right for you. In this post we’ll explore the key things to look for and why Mettle by NatWest is a great option for sole traders as well as limited companies.
Quick and Easy Account Setup
The process to set up a sole trader business is quick and easy and it should be the same for a business bank account. With Mettle, there’s no need to visit a branch and spend time filling out forms as the sign-up process is fully digital and can be completed through the app. Most sole traders can open an account in a matter of minutes.
No Fees Means You Save Money
Every expense counts when you’re self-employed and it’s important to trim unnecessary costs so it’s a good idea to choose a business bank account without any charges to help keep your overheads down.
Some business bank accounts can charge a variety of fees including monthly fees to maintain the account, transaction fees, cash machine withdrawal charges, fees for electronic payments, overdraft fees and cash handling fees. This means the costs can soon mount up, especially when you’ll be using the service very regularly.
Mettle provides a 100% free business banking service with no account fees, no transaction costs and no payment fees. You can send money, receive payments and manage your funds without worrying about incurring any costs, helping you keep more of what you earn
Powerful App-Based Account Management
As a sole trader, you’ll no doubt be busy so you need a business banking app that works seamlessly allowing you to manage your business finances on-the-go. Mettle is fully digital with a powerful app that gives you full control at your fingertips. This helps reduce the time you spend on day-to-day admin giving you more time to focus on your clients and core business activities. Key app features include:
- Receive real-time notifications for payments and outgoing transactions
- Track your spending with a clear and organised dashboard
- Create and send professional invoices directly from your phone
- Sync with your accounting software to keep records up to date
Features to Simplify Your Taxes
The run up to the self-assessment filing deadline can be a very stressful time for sole traders, especially if you use the same bank account for your business and personal finances. Having a dedicated business bank account is a huge help, but Mettle goes much further with a host of features along with FreeAgent integration so you can easily keep your finances organised and take the heat off when your taxes are due.
- Integrate with FreeAgent accounting software seamlessly to simplify your bookkeeping, get live estimates of your income tax liability and benefit from MTD-compliant automated tax calculation and digital submission
- Automatically categorise transactions by business type, helping you identify allowable expenses quickly and attach digital receipts or notes to each transaction to keep your records organised
- Get real-time estimates of you income tax liability and use Tax Pots to set aside a percentage of your income so you can easily save up for your tax bill
Support from a Leading Bank
Your business is personal as a sole trader, so choosing a business bank account from a bank you can trust is paramount.
Mettle is part of NatWest, one of the UK’s most established and trusted banks. This backing means your funds are protected up to £85,000 under the Financial Services Compensation Scheme (FSCS), giving you peace of mind that your money is in safe hands.
Should you need help, Mettle’s knowledgeable UK-based support team is available 7 days a week. You can reach out via live chat through the app, or by email or phone for a fast resolution to any queries you may have.
In the digital age, security is more important than ever, especially when managing your business finances online. Mettle provides robust industry-standard protection to give you complete peace of mind. With biometric logins, encrypted data storage, sector APIs and instant transaction alerts, your account is kept secure at every stage. You can freeze your card instantly through the app if it’s lost or stolen and smart fraud detection systems are always working in the background to flag any suspicious activity.
Mettle gives you the security and reassurance of a major bank with the flexibility of a modern, digital app-based service.
Mettle, FreeAgent and Gorilla Accounting
Choosing the right tools and support can make all the difference when you’re running your own business, and opening a dedicated business bank account like Mettle is one of the smartest financial decisions a sole trader can make, alongside appointing a sole trader accountant.
A business bank account separates your business and personal finances allowing you to keep things organised, track your income and expenses with clarity so you’re stress-free when the tax filing deadline approaches.
When paired with FreeAgent accounting software, which we provide free to all our clients, backed up by your own dedicated accountant, you can rest assured that your business finances are in safe hands.
Mettle handles the banking, FreeAgent takes care of the numbers, and your dedicated accountant ensures your tax and financial affairs are expertly managed so you’re fully compliant with HMRC regulations, including Making Tax Digital for Income Tax which comes into effect for some sole traders from April 2026.
Click here to apply for a Mettle account today and if you have any queries about our sole trader accountancy service, request a callback today to speak to an accountant.
