Business Bank Accounts for Domestic Cleaners

Getting your banking sorted, the smart way

Domestic cleaning often starts small - a few clients, simple jobs, cash in hand. As work grows, so do the numbers, and that is where the right bank account makes a real difference. If you run a limited company or LLP, a business account is not optional because the company is a separate legal person. If you are a sole trader, the law does not force you to open one, but most banks will not let you use a personal account for business activity and it can quickly become messy at tax time.

The good news is that today’s business accounts are straightforward to set up, often app based and built for life on the move. They help you keep business and personal money separate, stay on top of tax, and accept the payment methods clients prefer. That means fewer headaches, a clearer view of profit, and a more professional image that reassures households and agencies.

Simple banking habits protect profits and reduce stress at year end.

Who will benefit

This guide is for UK domestic cleaners at any stage - from new sole traders taking on regular clients to growing limited companies paying staff and buying equipment. If you invoice, take bank transfers, or plan to scale, a dedicated business account can help you stay compliant, control cash flow and present a professional front to clients.

What counts as a business account

A business bank account is a current account designed for trading activity. It lets you receive client payments, pay suppliers, set up Direct Debits, and connect to bookkeeping tools. Limited companies and LLPs must use one because their finances are legally separate from the owners. Sole traders are not legally required to, but many personal account terms prohibit business use, and using a dedicated account makes record keeping far easier.

Most UK business accounts are protected by the Financial Services Compensation Scheme. Eligible deposits are covered up to £120,000 per banking group. For sole traders, that limit is shared across your personal and business money with the same bank because you are the same legal person. For limited companies, the company has its own separate FSCS limit on top of the owner’s personal protection. That can be important if you hold larger balances for wages, equipment or tax.

How to open and run one

Opening a business account is usually straightforward. Expect to provide proof of identity like a passport or UK driving licence, proof of address, and core business details such as your trading name, address, expected turnover and contact information. Limited companies will also share their Companies House number and details for each director. Many digital providers let you complete checks in-app with selfie verification, which speeds things up.

Once open, connect your account to accounting software so card payments for supplies, fuel and equipment flow straight into your books. Use built-in features to set money aside for tax and VAT if registered, send invoices, and tag expenses. If you receive cash, check deposit options and fees through the Post Office or PayPoint. Review your plan every six to twelve months so introductory offers do not quietly switch to higher charges without you noticing.

Why it matters for cleaners

Keeping personal and business money separate is more than tidy bookkeeping - it is essential for clarity. You can track income by client, ring-fence tax, and see real profit at a glance. That helps when applying for credit, adding staff or negotiating with agencies. Digital banking suits cleaners on the go, with instant notifications, payment links and simple invoicing that reduce unpaid bills and cut time spent chasing cash.

As you grow, banking features can support cash flow. Predictable fees, overdraft options, insights on spending and smart alerts help you stay in control when wage days and supply bills hit. Professional details on invoices - your business name and dedicated account - build trust with households and landlords who expect to pay by bank transfer rather than cash. In short, the right account supports compliance, confidence and growth.

The upside and the trade-offs

Watchpoints before you apply

Check whether you are operating as a sole trader or a limited company, as this determines whether a business account is compulsory and how FSCS cover applies. Read fee schedules carefully. Many start-up accounts offer free banking for a period before a monthly fee begins. Standard transfers may be free, but cash deposit fees and international payments can carry separate charges. Heavy cash takings can make one provider more expensive than another, especially if fees are percentage based.

Look closely at limits and features. Do you need payment links, QuickBooks or Xero integration, multiple user access, or the ability to pay in cash locally? If you hold larger balances to cover wages or VAT, consider how FSCS eligibility and banking groups affect your protection and whether spreading funds across providers makes sense. Finally, prepare your documents up front - ID, address proof, HMRC registration and a simple business overview - to avoid avoidable delays.

Practical alternatives

1. Use a separate personal account purely for business as a short-term measure if your bank allows it - not ideal and often against terms, but better than mixing funds.
2. App-based e-money business accounts with fast onboarding and low fees where FSCS may not apply - check safeguarding arrangements.
3. Traditional branch-based business accounts with face-to-face support and cash services.
4. Building society business accounts in areas where you need regular counter services.
5. Merchant services or payment links linked to your business account to reduce cash handling.

FAQs

Q: Do I legally need a business account as a sole trader cleaner? A: No. It is not a legal requirement, but most banks ban business use of personal accounts and a separate business account makes tax and bookkeeping far easier.

Q: I run a limited company. Can I use my personal account? A: No. A limited company is a separate legal entity, so it must have its own business account for trading.

Q: How much FSCS protection will I have? A: Eligible business deposits are covered up to £120,000 per banking group. Sole traders share that limit with personal funds at the same bank. Limited companies have a separate limit.

Q: What documents will the bank ask for? A: Usually proof of ID and address, your trading name, contact details and expected turnover. Limited companies also provide their Companies House number and director details.

Q: Are digital business accounts suitable if I handle cash? A: Many are, but check cash deposit options and fees via the Post Office or PayPoint. If you deposit cash frequently, compare providers carefully.

How Switcha can help

Choosing the right account can feel confusing. Switcha will connect you with the best options for what you are looking for, from app-based accounts to traditional banks. We compare features, fees and eligibility in plain English so you can make a confident, informed choice without the runaround.

Plain English reminder

This guide provides general information for UK domestic cleaners. It is not financial advice. Always check current terms, eligibility and protections with the provider and consider professional advice for your specific circumstances.