If you’re thinking of setting up a limited company, or have just incorporated, you will need to set up a separate business account before you can start trading.
Because a limited company is a separate legal entity from its directors, its finances must be kept separate from your personal banking. In practice, this means that all company income should be paid into a dedicated business account, and all company expenses should be paid from it.
Keeping your business finances separate also makes life much easier when it comes to bookkeeping, preparing your company accounts, and dealing with HMRC.
A low-cost alternative to typical business banking
As a limited company is a separate legal entity from its directors, you must set up a separate bank account for your new business. You can’t use your personal account.
You may have found that many regular business accounts charge high monthly fees, charge for routine transactions, or take weeks to set up.
Or, even worse, you have to attend a ‘meeting’ with a business bank adviser who has no idea what a ‘contractor’ is and asks you for a business plan before you can open an account.
In recent years, a number of digital business banks have emerged, offering a much faster and simpler alternative. These accounts are designed to be opened online and often have lower fees than traditional High Street banks.
To make this step a little easier for our visitors, we’ve partnered with Zempler Bank to offer contractors a free business bank account – the Business Go account.
The Business Go account is cost-effective, and you can also apply online right away, with no hassle or the need to visit a ‘business banker’ at a local branch.
As Zempler is a fully regulated British bank, your money is protected by the FSCS scheme.
Zempler Bank was previously known as Cashplus Bank.
Fast account set-up
Perhaps one of the most attractive things about the Business Go Account is that you can have an account number and sort code almost instantly.
This is very handy if your client or agency requires these details and you’ve not had the chance to set up an account with a High Street bank.
The sign-up process takes only a few minutes, and the application is completed entirely online.
Key benefits of the Zempler Bank business account
- Free bank account with no annual fee.
- 24/7 online & mobile banking.
- Integrates with major accountancy packages, including FreeAgent and Xero.
- Friendly UK-based customer service.
- FSCS protection – the Government protects eligible balances up to £120,000.
- Free to receive inbound transfers and card settlements.
- You can deposit cash at any Post Office (fees apply).
The account also includes useful business tools within the mobile app, such as invoice creation, receipt capture and spending insights, which can help small companies keep track of their finances.
Is the Zempler Business Go account suitable for contractors?
For many limited company contractors, a simple online business account is usually all that is needed.
If your company mainly receives payments from agencies or clients by bank transfer, and you rarely deal with cash or cheques, an account like Zempler can be a straightforward and low-cost option.
It can be particularly useful if you have just incorporated and need an account number and sort code quickly so your client or agency can set you up on their payment system.
Many contractors simply use their business account to receive client payments, pay routine company expenses, and transfer money to their personal account when taking a salary or dividend.
However, if your company expects to make a very large number of transfers each month or regularly handle cash deposits, you may find that a traditional High Street business bank account or another fintech provider offers better value.
So, how do you apply for a Business Go account?
You can apply by clicking on the button below. The application takes place on the Zempler Bank website.
Your application will be tracked as an IT Contracting referral.
As long as your ID and address are verified during the online application process, you will instantly receive your Account Number and Sort Code.
Alternatively, you might be asked to provide additional documents before your account details are provided.
Banking – Further Reading
If you’d like to compare Zempler Bank with other leading alternative current accounts, view our bank account comparison table.