Tide for sole traders: is it a good fit?
Tide for sole traders means an app-based business account with a no-fee plan, built-in invoicing and free Making Tax Digital tools. It suits many self-employed people, but not all. This guide covers who can open an account, which plan fits your volumes, the tax tools on offer and the drawbacks to weigh up first.
First: do sole traders need a business account?
Not by law. Tide itself says it isn't a legal requirement for a sole trader to have a business account. But keeping business money separate makes your records, your tax return and any questions from HMRC much easier to deal with. Our guide Do sole traders need a business bank account? goes through the reasons in more detail.
If you've decided you want one, the question is which. Looking at Tide for sole traders makes sense if you want a free plan, run things from your phone and like having invoicing and tax tools in the same app as your money.
Tide for sole traders: who can apply
According to Tide's eligibility page, every applicant must:
- be at least 18 years old
- have a valid UK mobile number
- have a device registered to the UK App Store or Google Play store
Sole traders and freelancers must also have a valid UK home address and be registered with HMRC. Tide's sole trader page adds that your business must be UK-based, can't be part of a business partnership and can't be managed by another legal entity. If you're in a partnership, Tide for sole traders isn't the right route.
You'll need proof of identity, address and business, plus a selfie. Some industries are restricted, including gambling, crypto, CBD, used car sales and charities, so check Tide's full eligibility list if your work is anywhere near those areas.
Still deciding how to set up? Our guide to sole trader or limited company sets out the differences.
Which Tide plan suits a sole trader?
Tide has four plans. For most people weighing up Tide for sole traders, the real choice is between Free and Smart:
| Plan | Monthly price | Free UK transfers | Card FX fee | Invoices | Useful extras |
|---|---|---|---|---|---|
| Free | £0 | 5 a month, then 20p | 2.75% | 3 a month | MTD tools, Payment Links, Tap to Pay |
| Smart | £12.49 | 30 a month, then 20p | 0% | 3 a month | Second account, business phone number, Xero connector |
| Pro | £27.49 | Unlimited (fair use) | 0% | 3 a month | Tide Accounting included |
| Max | £69.99 | Unlimited (fair use) | 0% | Unlimited | 0.5% cashback, payroll software |
Tide counts transfers in and out against the allowance. A sole trader with a handful of clients and a few bills will often stay within, or just over, the Free plan's 5. Each extra transfer is 20p, so going over by ten costs £2.
Free tends to fit
If you have few transactions, little foreign card spending and pay in cash rarely.
Smart may pay for itself
If you spend roughly £455 or more a month by card in other currencies, or pay in large sums of cash often.
Pro for bookkeeping
If you'd pay for accounting software anyway and Tide Accounting covers what you need.
Our Tide fees guide has every per-item charge, including cash deposits, plus worked examples you can compare with your own month.
Invoicing and getting paid
Invoicing is one of the main reasons people look at Tide for sole traders. You can create, send and track invoices from the app. The Free, Smart and Pro plans include 3 invoices a month, and Max includes unlimited invoices. If you invoice more than three clients a month on Free, check what the app offers before you rely on it, or use separate invoicing software.
Other ways to get paid on every plan include Payment Links, which you can send to a customer by message or email, and Tap to Pay, which lets you take card payments on your phone. Tide also tags your income and spending automatically, and you can change the labels to suit your business. With Tide for sole traders, that tagging is the start of your bookkeeping.
Tax and Making Tax Digital tools
Making Tax Digital (MTD) for Income Tax changes how many self-employed people report to HMRC. According to GOV.UK, from 6 April 2026 sole traders and landlords registered for Self Assessment with qualifying income over £50,000 must use it. HMRC has published plans to lower the threshold to £30,000 from April 2027 and £20,000 from April 2028.
Under MTD you keep digital records and send quarterly updates using compatible software. Here's what Tide for sole traders includes:
- MTD for Income Tax tools, free. Tide says its MTD features are HMRC-recognised and come with the free business account. Tide prepares each quarterly summary, and you review and approve it before it goes to HMRC. It covers the four quarterly updates and the final declaration.
- Tide Accounting. Included with Pro, or available as a paid add-on, which Tide lists at £13.99 plus VAT a month for sole traders. Tide says it adds features such as VAT returns and financial reports. The free MTD tools don't cover VAT.
- Tax Account. A separate pot for setting money aside for your tax bill, based on your Self Assessment estimate or a target you choose. You can pay HMRC from it.
Quarterly update deadlines are set by HMRC, so check GOV.UK for the current dates. The tax tools are a strong part of Tide for sole traders, but they don't replace advice. If you're not sure whether MTD applies to you or what counts as qualifying income, check GOV.UK or ask an accountant.
New to Tide? Code STARTUP200 can earn up to £200 cashback: £75 after £100 card spend in 30 days, plus £125 for holding £5,000 in an Instant Saver for 30 days*. *T&Cs apply
Open a Tide accountTide is our featured partner. We may earn commission from referrals. Disclosure
Who it suits
Three examples of how Tide for sole traders could work in practice:
The new freelancer
A few clients, a few bills, card spending in pounds. The Free plan and its built-in tools cover the basics at no monthly cost.
The trader who takes cash
Post Office deposits cost £2.50 up to £500, then 0.99% on Free or 0.5% on paid plans. Work out a typical month first.
The sole trader working abroad
The Free plan's 2.75% FX fee adds up quickly. Smart and above don't charge it on card payments.
For many people starting out, the £75 part of STARTUP200 is reachable with normal business spending in the first month*. *T&Cs apply The £125 part only makes sense if you have £5,000 you can leave untouched for 30 days*. *T&Cs apply With Tide for sole traders, you need the business account open before you can add an Instant Saver.
Tide for sole traders: pros and cons
Pros
- No monthly fee on the Free plan
- Free, HMRC-recognised MTD for Income Tax tools
- Invoicing, Payment Links and Tap to Pay built in
- Tax Account for setting money aside
- Eligible deposits FSCS-protected through ClearBank, up to £120,000
Cons
- Only 5 free transfers a month on Free, counting payments in
- 2.75% fee on foreign-currency card spending on Free
- Only 3 invoices a month on all plans except Max
- Cash deposits always carry a charge
- App-only, with no branches
- Tide for sole traders isn't open to partnerships
Tide isn't a bank: it's an FCA-authorised e-money institution, and its accounts are powered by ClearBank. Eligible deposits are protected by the FSCS through ClearBank. To weigh Tide for sole traders against other providers, see our compare business bank accounts page or the full Tide review.
How to apply
Applying for Tide for sole traders happens in the app, and you can usually do it in one sitting if your documents are ready.
- 1
Register with HMRC
Tide needs you to be registered as self-employed before you apply.
- 2
Download the Tide app
Tell Tide about your business, including its name and industry. Enter any promo code at this stage.
- 3
Verify your identity
Upload photo ID and take a selfie. Tide may ask for more information about your business.
- 4
Choose your plan
If you're new to Tide for sole traders, start on Free if you're unsure. Tide's plan pages say you can upgrade later, charged pro rata for the first month.
Tide for sole traders FAQs
Can sole traders open a Tide account?
Yes, if you're 18 or over, have a UK home address and mobile number, and are registered with HMRC.
Is Tide for sole traders free?
The Free plan has no monthly fee. Per-item charges still apply, such as 20p per transfer after 5 a month and cash deposit fees.
Does Tide for sole traders include Making Tax Digital?
Yes. Tide says its MTD for Income Tax tools are HMRC-recognised and free with the business account. VAT returns need Tide Accounting.
Can a partnership use Tide for sole traders?
No. Tide's sole trader page says you can't be in a business partnership.
Do I need a UTR to apply?
Tide says you must be registered with HMRC. It doesn't say on its eligibility page exactly which reference it asks for, so have your HMRC details to hand.
Sources
- Tide: who can open a Tide account (checked 25 October 2026)
- Tide: sole trader bank account (checked 25 October 2026)
- Tide: Making Tax Digital for Income Tax (checked 25 October 2026)
- GOV.UK: Making Tax Digital for Income Tax, step by step (checked 25 October 2026)
- Tide pricing page, accounting software page and Tax Account help page (checked 25 October 2026)