Business Bank Accounts for Private Clinics

Getting the basics right for clinic banking

Running a private clinic means handling insurer remittances, self-pay invoices and payroll with absolute clarity. A dedicated business bank account keeps these flows clean and auditable, separating practice money from your personal finances. In the UK, limited companies and LLPs must use a separate business account because the entity is legally distinct. Even sole traders benefit from the clarity, especially when presenting records to HMRC, insurers or lenders. The result is simpler bookkeeping, fewer headaches at tax time and a more professional footing when partners or landlords ask for proof of income.

Insurance can offer real financial protection, but only when you understand what is covered. Banking is similar: the right account can protect, streamline and evidence your clinic’s finances. This guide sets out what a business account is, how to open one, why it matters and how to compare options without surprises.

A separate business account is a cornerstone of compliant, professional private practice in the UK.

Who should pay attention

If you are setting up or running a UK private medical, dental, therapy or diagnostics clinic, this is for you. It is especially relevant to incorporated practices, consultant groups and multi-site providers, but self-employed clinicians and sole traders will also gain from clearer records and easier tax submissions.

What a business account really means

A business bank account is a current account designed for commercial activity. For UK clinics operating as limited companies or LLPs, it is not optional - the business is a separate legal person, so mixing transactions in a personal account risks breaching bank terms and undermining your legal protections. For sole traders, a business account is strongly recommended rather than mandated. Either way, the aim is straightforward: ring-fence income and expenses, maintain a clean audit trail and avoid comingling that can complicate HMRC enquiries.

Modern business accounts go beyond a place to hold funds. Many integrate with accounting tools like Xero, QuickBooks and FreeAgent, automate categorisation and support invoicing. App-based providers offer rapid onboarding, in-app support and card controls, while traditional banks may add in-branch services and lending relationships. Most UK accounts for eligible businesses are protected by the Financial Services Compensation Scheme up to £120,000 per authorised banking group, helping clinics spread deposits to manage risk.

How to set up your account smoothly

Preparation is the quickest route to approval. Banks typically ask for proof of identity and address for all directors and key controllers, plus core business details: registered and trading addresses, Companies House number if applicable, estimated turnover and tax or VAT information. If any owner is non-UK, have residency or visa evidence ready. Digital-first providers often complete checks online within minutes once documents are in order, while traditional banks may take longer due to in-branch steps and additional due diligence.

Choose providers that match your legal form and signatory needs. Some digital banks accept only companies and LLPs with UK-resident directors and persons of significant control. Community clinics or charities may require specialist accounts to handle trustee approval and restricted funds. Before applying, map your expected transactions - insurer payments, card receipts, payroll, cash or cheque deposits - so you can pick pricing that fits how your clinic actually operates.

Why this matters for compliance and growth

The right business account delivers immediate clarity. Clean separation supports accurate corporation tax or income tax reporting, reduces the chance of HMRC queries spilling into your personal finances and signals professionalism to insurers and corporate clients. For incorporated clinics, it also aligns with the legal requirement to keep company finances distinct, preserving limited liability protections.

Clinics often hold meaningful balances from patient prepayments or insurer remittances. FSCS protection up to £120,000 per authorised banking group provides a safety net and allows you to diversify deposits if needed. Consistent turnover through a dedicated account also helps build a credit profile for your clinic, improving access to overdrafts, equipment finance and leases when you need to invest in new treatment rooms or imaging suites.

Strong banking hygiene today can reduce costs and unlock finance tomorrow.

At a glance: the upsides and trade-offs

Watchpoints and common pitfalls

Two issues cause the most trouble: mixing personal and clinic transactions, and underestimating fees. Comingling makes it harder to evidence expenses, clouds your audit trail and can trigger account reviews. Keep all clinic income and outgoings in the business account, including small purchases and subscriptions. On fees, look past headline free banking. If you lodge cash at the Post Office or rely on international payments, check per-transaction costs and thresholds. Likewise, confirm how card settlements, insurer remittances and refunds are handled to avoid reconciliation friction.

Eligibility matters. Some providers will not accept general partnerships, unregistered charities or companies with non-UK resident controllers. If you operate a community clinic, confirm trustee and mandate structures are supported. Finally, consider FSCS coverage. For limited companies, the company’s deposits have their own protection limit. Sole traders typically share their limit across personal and business balances, so diversifying across authorised groups can help keep funds within protection levels.

Other routes to consider

1. Specialist accounts for charities or community interest companies with trustee controls and restricted funds support.
2. Traditional high street banks for relationship management, in-branch services and complex lending.
3. Digital-first banks offering low fees, rapid onboarding and deep accounting integrations.
4. Payment institutions or merchant accounts to streamline card acceptance and payouts alongside your bank account.
5. Multi-bank setup to diversify FSCS coverage and separate income streams by site or service line.

Frequently asked questions

Do I legally need a business account for my clinic?

If you operate as a limited company or LLP, yes - the business is a separate legal entity. Sole traders are not legally required to have one, but it is strongly advised for clarity and compliance.

How much FSCS protection applies to business accounts?

For eligible businesses, most UK business current accounts are protected up to £120,000 per authorised banking group. Limited companies’ protection is separate from the owners’ personal protection.

What documents will the bank ask for?

Expect identity and address proof for directors and key controllers, your Companies House number if applicable, trading address, estimated turnover and tax or VAT details. Non-UK owners may need residency evidence.

Will a business account help me get finance?

Yes. Consistent, well-managed turnover through a business account helps build a separate credit profile, which lenders often consider when assessing overdrafts, loans or equipment finance.

Are app-based business banks safe for clinics?

Digital-first UK banks are fully regulated and typically offer FSCS protection for eligible deposits. They can be convenient for time-poor clinicians, with fast onboarding and software integrations.

How Switcha can help

Switcha will connect you with the best options for what you are looking for. We compare leading UK business accounts for clinics of different sizes and legal forms, highlighting fees, integrations and eligibility. You get clear, side-by-side choices and friendly guidance so you can open the right account with confidence.

Important information

This guide provides general information only and is not financial, legal or tax advice. Always confirm eligibility, fees and FSCS status with the provider and speak to a qualified adviser about your clinic’s specific circumstances.