Business Bank Accounts for Painters and Decorators

Get your decorating finances in good order

Running a painting and decorating business often means juggling irregular income, small daily purchases and deposits between jobs. A dedicated business bank account helps keep that flow clean and compliant. If you operate as a limited company you must keep company money separate. Sole traders are not legally required to, but separating business and personal spending makes bookkeeping simpler, claims clearer and tax returns far less stressful. With more payments happening by card or bank transfer, the right account can give you real-time control from your phone and link directly to your bookkeeping.

Simple separation of money reduces errors, avoids lost receipts and gives you a clearer picture of profit per job.

Choosing the right provider comes down to how you actually get paid and buy materials. Traditional banks still suit cash handling and those who value in-branch support. Digital providers tend to keep costs low and integrate neatly with accounting tools so you can stay Making Tax Digital ready.

Who will benefit most

If you are a UK painter or decorator trading as a sole trader, limited company or small team, this guide is for you. It will help if you take a mix of card, online and occasional cash payments, want to minimise fees, need to ring-fence tax money, or plan to connect your account to bookkeeping software for faster, cleaner admin.

What a dedicated account actually delivers

A business bank account separates your trade income and costs from personal spending. For limited companies it is not optional - the company is a separate legal entity. For sole traders, a stand-alone account makes it easier to evidence allowable expenses, reconcile fuel, paint and sundries, and avoid missing tax-deductible costs. Many providers now include features built for small trades: receipt capture in the app, instant payment notifications, and tax pots to set aside VAT or self assessment money as you go.

Most business accounts in the UK sit under deposit protection, with eligible balances typically covered up to around £120,000 per authorised banking group. For sole traders, that limit generally applies across both personal and business money held with the same group. For limited companies, the company usually has its own separate protection limit. If you hold client deposits or stage payments between jobs, understanding these limits helps you decide whether you need multiple accounts.

How to open and set up smoothly

Applying is straightforward when you prepare documents in advance. Banks will ask for proof of identity like a passport or driving licence and proof of address for anyone with access to the account. You will also be asked for business details, such as your trading or registered address, expected turnover and tax or VAT information if relevant. Limited companies should have their Companies House number, certificate of incorporation and governing documents to hand. Approval times vary - some high street banks can take weeks, while many digital providers approve on the same day.

Once open, connect your account to cloud bookkeeping like Xero, QuickBooks or FreeAgent. Automatic bank feeds will categorise transactions, speed up reconciliation and give you real-time job-by-job visibility. Set up payment links or a card reader if you take card payments on-site, and configure separate pots for VAT and income tax so money for HMRC is ring-fenced the moment you are paid.

Why getting this right matters

Good banking choices save time and reduce risk. Clear separation of funds supports accurate claims, simpler audits and stress-free self assessment or corporation tax submissions. Knowing the typical fee structure - such as around £5 monthly account fees at some banks after free introductory periods, and per-transaction or percentage charges for cash deposits via the Post Office or PayPoint - helps you avoid quietly eroding profit on small, frequent purchases.

Deposit protection matters if you hold client money or stage payments before buying materials. Understanding how limits work by banking group lets you plan where to keep working capital safely. And with Making Tax Digital expanding, clean digital records backed by live bank feeds mean fewer late-night admin sessions and a lower risk of non-compliance penalties.

Quick view: strengths and trade-offs

Watchpoints before you press apply

Be clear on how you get paid and what you pay for. If you still receive cash, check the provider’s Post Office deposit options and the charges per £100 deposited, including any minimum per transaction. For card and bank transfer payments, compare the cost of card readers and settlement times. Review monthly fees after any introductory free period, plus charges for overseas payments if you buy tools or materials from abroad. Check that your chosen account integrates with your bookkeeping. Real-time bank feeds, receipt capture and simple rules for categorising frequent purchases will save hours every month. Finally, confirm how deposit protection applies to your setup, especially if you are a sole trader with personal and business balances at the same banking group, or a limited company wanting separate protection.

Other routes you could take

1. Use a digital business account with no monthly fee and strong bookkeeping integrations.
2. Choose a high street bank for in-branch support, cash handling and lending options.
3. Keep a sole trader personal account purely for business use as a short-term step.
4. Open multiple business accounts across different banking groups to manage protection limits.
5. Use an e-money business account for day-to-day spending alongside a bank account for deposits.

Common questions, answered

Q: Do I legally need a business account as a sole trader? A: No, not by law. However, keeping a dedicated account makes expenses easier to evidence, reduces errors and helps you stay organised for tax.

Q: What documents will I need to open an account? A: Expect proof of identity and address for key people, your trading or registered address, expected turnover and tax details. Limited companies also need Companies House information and incorporation documents.

Q: How are my business deposits protected? A: Most UK business current accounts are covered by deposit protection, with eligible balances typically up to around £120,000 per authorised banking group. Limits apply per group, so plan accordingly.

Q: Are digital business accounts accepted by accountants and HMRC? A: Yes. Digital providers are widely used and often integrate directly with recognised accounting software, supporting clean records for Making Tax Digital and tax submissions.

Q: What fees should I compare first? A: Look at monthly account fees after any free period, card fees, overseas payment costs, and cash deposit charges at the Post Office or PayPoint, including per-transaction minimums.

How Switcha fits into your decision

Switcha will connect you with the best options for what you are looking for, based on how you work and get paid. We compare trusted UK providers, flag key fees and integrations, and help you narrow the shortlist so you can open the right account with confidence.

Important note

This guide provides general information for UK readers and is not financial, legal or tax advice. Always check current terms with providers and speak to a qualified professional about your specific circumstances before making decisions.