NatWest Business Banking services are available to eligible customers who are over 18. Specific account and service eligibility criteria apply.
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What are the different types of business accounts?
Sole trader
As a sole trader, you (as the business owner) and the business itself are considered the same legal entity. This means you don’t legally need a separate bank account for your business and personal finances.
However, you might find that a business bank account can make life easier.
If you have separate business and personal finances, you might find it simpler to calculate tax for self-assessment. This also makes it easier to budget – as your business expenses won’t get confused with your weekly food shop, rent or other personal costs.
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A Limited company
When you’re a sole trader, legally there is no difference between you and your business. That means that if your business is sued, so are you – and you could lose your house, your car and other personal assets.
A limited company, on the other hand, has a separate legal identity of its own. This means that if the business is sued, it’s the company that’s sued. The directors and shareholders generally won’t lose their own assets, unless, in the case of the directors, they’ve given personal guarantees or been found guilty of wrongdoing.
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Partnership
A partnership allows two or more people to set up a business together.
Once everything is up and running, all the partners then share the responsibility for any business bills or losses. They can share any profits or gains the partnership makes as well.
However, tax needs to be worked out individually. This means each partner is responsible for paying the right tax and making national insurance contributions. All partners must register with HM Revenue and Customs for Self Assessment and deal with their own tax returns.
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Business current accounts
Depending on your provider, you might find that some business current accounts are better suited to different-sized businesses. Some might be designed for small businesses with a relatively low turnover, while others may be more suitable for large businesses with large turnovers.
Either way, you’ll probably find a business account has a few extra features compared to a personal account. Some banks will offer dedicated business support or accounting software to support you.
Whichever account you choose, try to make sure it’s a good fit for your business. For example, if you regularly trade overseas, you may want an account with low international transaction fees. You could find an account with a bank who are well-regarded in your industry. Or, if you have specialist banking needs, you may be able to find an account with a dedicated relationship manager.
Business Savings accounts
A business savings account works just like a regular savings account. The kind you might use to save for a holiday, wedding or rainy day. Except in this case, you can save for the things your business needs for the future – like new staff or office equipment. It can also help you cover unexpected costs like when your office heater stops working, or your delivery van breaks down.
And just like a personal savings account, there are options to choose from. With some accounts, you’ll be able to access your savings whenever you like. With others, you could earn a higher rate of interest if you leave your money untouched for an agreed period. It all comes down to what you can afford.
Community and non-profit accounts
Charities, community groups and not-for-profit organisations operate differently from other businesses and have unique priorities. You can find a range of specialist bank accounts catering directly to these needs. These are often called community bank accounts.
Many charities and community groups need to have a bank account in the name of the group. It's particularly important for tracking the money coming in and going out, while also ensuring it doesn't get mixed up with money from elsewhere. If you intend to apply for grants to collect donations and fees, you'll likely need a community bank account to do so.
Need a business account?
With a NatWest business bank account, you get:
- FreeAgent – award-winning* accounting software
- The ability to bank anywhere – online, on your mobile 24/7, or at our network of branches or local Post Office (branch and Post Office banking not available to Mettle customers)
- Help when you need it by talking to us through secure messaging in-app or online
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*Friendliest Software of the Year, Institute of Certified Bookkeepers Luca Awards 2023. FreeAgent is free subject to client retaining their NatWest business banking current account. Optional add-ons may be chargeable. Mettle requires you to make at least one transaction per month with your Mettle account.
App available to customers with compatible iOS and Android devices and a UK or international mobile number in specific countries.
Our switcher offer
Get free banking on everyday transactions for 2 years when you switch to us*
If you've got an annual turnover of up to £2m and switch your business account to us using the full Current Account Switch Service, we'll give you 2 years of free banking on everyday transactions.
Everything will be moved across from your old account to your new account for you, all within 7 working days, including Direct Debits and Standing Orders.
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*Switch offer is not available to customers switching a Royal Bank of Scotland or Ulster Bank business current account to NatWest. Not currently available for Mettle accounts. Free banking means the charges for the day to day running of your account (known as your service charges) won’t apply during the free banking period. Charges for unarranged overdrafts, Bankline, international payments and any additional services are not part of the free banking offer. At the end of the free banking period, you’ll be automatically moved to the Standard Tariff.
Contact us
Have any questions? Take a look at our Support Centre to see how we can help you.
The quickest way to get in touch is by chatting to our 24/7 digital assistant, Cora.
Or, for everyday business banking support, contact us 24/7 on: 0345 711 4477.
- Outside the UK? Give us a call on: +44 870 511 4477
- Or call: 18001 0345 711 4477 for Relay UK.
If you’re looking for more specialist support, we provide this Monday to Friday, 9am till 5pm.
