What bank account does a sole trader need?

A sole trader can use any bank account, including a personal account. However, when it comes to managing finances, using one account for your personal and business finances is not advised. A separate bank account, such as a Tide account, is best for a sole trader.

If you're a sole trader, any savings interest you earn is your personal income - and is subject to income tax if it exceeds certain limits.

If you're a limited company director, your savings belong to the business and any interest earned is company revenue - which may be subject to corporation tax.

Find out more in our savings interest tax guide.