Business bank account for consultants: what to look for

Consultancy money has its own shape. You send fewer invoices than most small businesses, but each one is larger, paid by another business on its terms, and often carries VAT that isn't yours to keep. If you work with a business partner, two or three directors may need to see and approve payments. A business bank account for consultants should handle large incoming payments, set money aside for VAT and Corporation Tax, and give the right people the right access.

By the Business Account Review editorial team · checked 25 October 2026 · How we check

Sole trader or limited company?

Many consultants start as sole traders and later set up a limited company, often because clients prefer to contract with a company. The legal structure decides whether a business bank account for consultants is optional or essential:

Sole trader

You and the business are the same legal person. A business bank account for consultants isn't legally required, but it keeps client money apart from your own.

Limited company

The company is a separate legal person, so it needs a business bank account for consultants in its own name. You pay yourself through salary or dividends.

If you're weighing up the switch, read our guide to sole trader or limited company. Contractors working through an agency face extra rules, covered in our business bank account for contractors guide.

B2B invoicing with a business bank account for consultants

A client's finance team won't pay until your invoice is right. GOV.UK says every invoice must show:

a unique invoice number
your business name, address and contact details
the client's company name and address
a clear description of the work
the date of supply and the date of the invoice
the amount, any VAT, and the total due
for a limited company, the full name as on the certificate of incorporation, and all directors' names if you list any

Payment terms are where a business bank account for consultants feels the squeeze. GOV.UK says the agreed payment date for business transactions must usually be within 60 days, and if nothing was agreed, payment is late 30 days after the client receives the invoice or you deliver the work, whichever is later. For late business payments you can usually charge statutory interest of 8% plus the Bank of England base rate, unless your contract sets another rate.

A business bank account for consultants with invoicing built in can match each payment to its invoice and flag what's overdue. Tide includes 3 invoices a month on Free, Smart and Pro, and unlimited invoices on Max. Starling and Mettle include invoicing on their free accounts, and Monzo Business includes it from its Pro plan. If you use separate accounting software, check that your business bank account for consultants connects to it.

VAT and the money that isn't yours

Fees paid into a business bank account for consultants build up quickly. GOV.UK says you must register for VAT if your taxable turnover for the previous 12 months goes over £90,000, and register within 30 days of the end of the month you went over. You must also register if you expect to go over £90,000 in the next 30 days alone. Some consultants register voluntarily because their business clients can usually reclaim the VAT.

Once you're registered, part of every invoice belongs to HMRC. A simple habit with a business bank account for consultants is to move the VAT element of each payment into a separate pot the day it arrives. Do the same for Corporation Tax or Self Assessment, so the main balance in your business bank account for consultants shows what you can actually spend. Tide has a Tax Saver, Starling has Spaces, Mettle has a Tax Pot, and Monzo Business has Tax Pots on paid plans.

If you advise clients outside the UK, VAT works differently. HMRC's VAT Notice 741A explains the place of supply rules for services. Talk to an accountant before invoicing an overseas client for the first time. Our guide on when to register for VAT covers the thresholds and schemes.

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Insurance and other fixed costs

Consultants' costs are mostly predictable: software subscriptions, professional body fees, travel to clients and insurance. Insurance is worth understanding properly:

Professional indemnity insurance: Covers claims that your advice or work caused a client financial loss. GOV.UK's business support site says you may need it if you give legal, financial or other professional advice or services, or if your industry or regulator requires it. Many client contracts also ask for it.
Employers' liability insurance: A legal requirement if people work for you, according to GOV.UK.
Public liability insurance: Covers claims from members of the public. Some clients ask for it if you work on their premises.

Premiums can be large, so many consultants pay monthly by Direct Debit or set aside a twelfth each month. Paying them from a business bank account for consultants keeps a clean record for your accounts. Our guide to business insurance explains the types in more detail.

Multi-director access to a business bank account for consultants

A two-director consultancy often wants both directors to see the account, and sometimes one to approve the other's payments. Access rules vary a lot between providers, so check this before you choose a business bank account for consultants:

Business bank account for consultants: team and director access (providers' own pages, checked 25 October 2026)
Account	What the provider says
Starling	"Multiple directors can be added free of charge". Directors with access must be UK residents.
Monzo Business	Team access levels from Pro. On Team (£25 a month), limited companies can have up to 15 members, up to 3 of them admins, with payment approvals.
Revolut Business	"Invite your whole team at no extra cost", with optional paid Expenses and Payroll add-ons per active member.
Tide	Smart includes a team card and Pro includes 2 team cards. Check Tide's help centre for how many users can access the account.
Wise Business	Custom access levels; extra team cards cost £3 each.

Also check who can open a business bank account for consultants. Mettle and Starling say the applicant must be both a director and a person with significant control, which matters if the consultancy is owned by a holding company.

Large balances and protection

A business bank account for consultants can end up holding large sums: a quarter's VAT, a year's Corporation Tax and a cash buffer. Three things matter here.

FSCS limits

Eligible deposits with a UK bank are protected up to £120,000 per depositor, per banking licence. Some brands share a licence, so check which bank holds your money. Our guide on whether Tide is safe explains how this works.

Paying large sums

For big same-day payments you may need CHAPS. Tide charges £15 per CHAPS payment on Free, while Smart and Pro include 2 a month and Max includes 5.

Earning interest

Money set aside for tax can sit in an instant access savings account. See our guide to business savings accounts.

Three consultancy set-ups

These examples show how needs change with the shape of the business. They're illustrations, not recommendations.

Solo, below the VAT threshold

Two or three clients, one invoice each a month. A no-fee business bank account for consultants with a few invoices and a tax pot will usually do. Count transfers if the plan has an allowance.

Solo limited company, VAT registered

Larger invoices with VAT, a salary and dividends, and an accountant. This business bank account for consultants needs software links and separate VAT and Corporation Tax pots.

Two directors, small team

Both directors need access to the business bank account for consultants, plus cards for an associate. Look at user limits, payment approvals and extra card costs.

Before choosing a business bank account for consultants, compare business bank accounts side by side on these points.

Business bank account for consultants: FAQs

Do consultants need a business bank account?

A limited company needs its own account. A sole trader doesn't legally need one, but a business bank account for consultants makes invoicing, VAT and tax records much simpler.

Can two directors share one business account?

Usually, but the rules vary. Starling says multiple directors can be added free, while Monzo Business limits members by plan. Check before you apply.

How does VAT affect a consultant's business account?

Once you're registered, part of each payment is VAT owed to HMRC. GOV.UK says you must register when taxable turnover for the previous 12 months goes over £90,000, or you expect it to in the next 30 days alone.

Is professional indemnity insurance compulsory?

Not as a general rule, but GOV.UK says you may need it if you give professional advice or your regulator requires it. Clients often ask for it too.

Can I charge interest on a late invoice?

For business clients, you can usually claim statutory interest of 8% plus the Bank of England base rate, unless your contract sets another rate.

Sources

GOV.UK: Register for VAT (checked 25 October 2026)
GOV.UK: Late commercial payments and Invoices: what they must include (checked 25 October 2026)
GOV.UK business support: How to get insurance for small businesses (checked 25 October 2026)
HMRC VAT Notice 741A (place of supply of services)
Tide pricing and help centre; Starling, Monzo Business, Revolut Business, Wise Business and Mettle pages (checked 25 October 2026)