Do I Need a Business Bank Account for a Limited Company?

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Last updated 23 October 2026. Written by the Limited Company Accountant UK team, part of Accotax. Figures are for the 2026/27 tax year; always check GOV.UK for the latest rates.

Short answer: Yes. A limited company is a separate legal entity, so it should have its own bank account. Mixing personal and company money creates director’s loan and tax problems.

At a glance

Legal requirement Not specified, but strongly advised
Benefit Clean records and clear separation

Why it matters

It keeps your records clean and protects limited liability.

Choosing one

Compare fees, software integrations and digital features.

Want this handled for you?

Fixed monthly fee, named accountant, free first consultation. Get a free quote or call 0203 4411 258.

The bottom line

Yes. If you would rather not do it alone, our fixed fees start at £45.83 + VAT a month.

Frequently asked questions

Can I use my personal account?

A

It is allowed in practice for very new companies but not recommended.

Which banks work with Xero?

A

Most UK business banks support bank feeds.

Ready for a fixed monthly price?

Our packages start at £45.83 + VAT and cover accounts, tax and deadlines. Get a free quote or call 0203 4411 258.

JW
About the authorJames Whitfield, Senior Accountant

James Whitfield is a senior accountant at Limited Company Accountant UK, part of the Accotax group. He works with company directors on year-end accounts, Corporation Tax, VAT and director pay, and reviews every guide on this site against GOV.UK guidance.

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