Do you need a business bank account for a limited company?
1 min readCompare Business Banking
Limited companies are legally separate from their directors. Here's what that means for your bank account, and why running company money through a personal account is a bad idea.
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The short answer
Yes — in practice, a limited company needs its own bank account. Though no UK law specifically requires one, every major bank's personal account terms forbid business use, and Companies House and HMRC filings get messy fast if company money sits in a director's personal account.
Why a separate account matters
- A limited company is a distinct legal entity — its money is not yours.
- Directors who mingle funds risk having directors' loan account balances reclassified.
- Bookkeeping, VAT returns and corporation tax filings all assume a clean separation.
What to look for
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What to do next
Compare the six accounts UK limited companies typically shortlist.
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