Business Bank Accounts for Pubs

Running the pub till - and your bank account - the right way

Opening or buying a pub is exciting, but the banking side needs to be watertight from day one. In the UK, banks and regulators expect pubs to operate through a dedicated business current account, not a personal one. That separation makes day-to-day trading cleaner, helps with VAT and duty, and reduces headaches when you need to evidence income for landlords, lenders or grants. It also keeps you on the right side of anti-money-laundering checks, which are stricter for cash-heavy licensed venues.

Digital-first banks promise quick sign-up and low fees, while high-street names still win on branch services, deposit machines and relationship banking. The best fit depends on how your pub trades - particularly how much cash you handle - and how your POS, card acquirer and accounting software join up. Get this decision right and you protect margins, save admin time and open the door to better financing.

Keep your trading clean: use a separate business account from day one.

Who will find this useful

This guide is for UK publicans - whether you run a wet-led local, a food-focused gastropub or a mixed offer. It is equally relevant if you are preparing to take on a tenancy, buying a freehold, or switching banks to cut costs and improve service.

What a pub business account actually covers

A business current account is the pub’s financial hub. It receives card settlements and cash lodgements, pays suppliers and staff, and holds money ring-fenced for VAT and duty. Unlike personal accounts, business banking is designed for trading - with statements, data exports and controls your bookkeeper and accountant can rely on.

Banks separate providers into two broad camps. Digital-only banks focus on low or no monthly fees, fast app-based onboarding and clever tools for expenses, invoicing and notifications. High-street banks add physical services that pubs still value - branches, deposit machines, night safes and local managers. Some specialist lenders bridge the gap, combining relationship banking with modern apps and sector knowledge.

A good account integrates with your POS, card acquirer and accounting software so wet vs food sales, service charges and tips reconcile automatically. That means fewer late nights cashing up and fewer VAT errors.

How to choose - step by step

Start with your trading profile. If your pub is cash-light and card-led, an app-based account with no monthly fee could trim overheads and give you slick tools for day-to-day control. If you bank a lot of notes and coins, prioritise providers with convenient deposit options and clear pricing per £100 deposited - those fees can dwarf a small monthly charge.

Check eligibility before you apply. Licensed venues face extra questions on source of funds, ownership and cash handling. Gather IDs for directors and beneficial owners, your premises licence, management or tenancy agreements, and any brewery tie details. Having documents ready speeds up KYC and avoids launch delays.

Finally, look beyond the current account. Relationship-driven banks offering commercial mortgages, asset finance and working capital can save thousands over time if you plan refurbishments or refinancing. Ensure deposits are with a UK-authorised bank and covered by FSCS up to the applicable limit.

No one-size-fits-all - align the account with how your pub actually trades.

• Next steps:
  • Map a typical week’s deposits - cash vs card - and estimate fees.
  • List must-have integrations - POS, accounting, payroll, e-commerce.
  • Shortlist three banks, then compare deposit pricing, lending and support.

Why this choice matters for margins

Pubs are under pressure from rising business rates, energy and staffing costs. Banking should not add avoidable expense. Free or low-fee digital accounts can cut fixed overheads and reduce admin with real-time categorisation and exports. For cash-heavy venues, the key costs are often hidden in deposit charges and limits, not monthly fees. Choosing a bank with competitively priced deposit machines or night safes can lift net margins on busy weekends.

Eligibility and compliance are another factor. If your bank understands pubs, approvals are smoother and ongoing monitoring less disruptive. Sector-aware lenders may also unlock better terms on commercial mortgages or equipment finance, improving cash flow. And with the UK’s switching service, you are not locked in - moving to a better-fit provider is simpler than many operators expect.

Pros and cons at a glance

Pitfalls to avoid

Do not choose on headline fees alone. A “no monthly fee” account can cost more overall if cash deposit charges are high or caps are low. Model your typical cash takings across a week and compare per-£100 deposit pricing. Watch for card settlement routing - some banks integrate cleanly with your acquirer, others require manual workarounds that create reconciliation risk. Ensure your provider supports robust data exports and open banking so VAT, tips and service charges are tracked correctly.

Be prepared for deeper KYC. Licensed venues are scrutinised, especially where gaming machines and large cash volumes are involved. Incomplete ownership details and missing licences are the most common reasons for delays. Finally, check FSCS protection and UK regulation status. Holding payroll or duty funds with a non-UK authorised provider introduces avoidable risk.

Other routes worth considering

1. Keep a main high-street account for cash handling and add a digital account for low-cost payments and spend controls.
2. Use a specialist bank for commercial mortgages and asset finance while retaining your day-to-day account elsewhere.
3. Open a separate VAT and tax pot account to ring-fence liabilities and avoid accidental spend.
4. Explore cash collection services if deposit trips are frequent or unsafe.
5. Negotiate with your current bank - fees and deposit terms are sometimes flexible for established pubs.
6. Consider challenger banks that offer relationship managers alongside modern apps.

FAQs - straight answers

Q: Do I legally need a business bank account for a pub? A: While company structures effectively require one, most UK banks mandate a business account for trading pubs. It also simplifies VAT, duty and lender or landlord checks.

Q: Are digital banks safe for my pub’s money? A: Choose UK-authorised banks with FSCS protection up to the applicable limit per eligible business. That gives a safety net if the bank fails.

Q: How are cash deposits charged? A: Many banks price per £100 deposited and may set monthly caps. For cash-heavy pubs, these fees can exceed any monthly account charge.

Q: Will opening take long for a licensed venue? A: It can be fast if documents are ready. Expect extra questions on ownership, licences, cash handling and source of funds. Preparation avoids delays.

Q: Can I switch without disrupting suppliers and payroll? A: Yes - participating providers use the UK’s switching service to move payments and set up redirection within agreed timeframes.

How Switcha fits into your plan

Switcha compares business banking options side by side, helping you weigh cash deposit costs, integrations and lending strength. We will connect you with the best options for what you are looking for and highlight practical trade-offs, so you can choose confidently and move forward with minimal disruption.

Plain-English reminder

This guide is general information for UK pub businesses. It is not financial or legal advice. Always check charges, eligibility and FSCS status with providers, and speak to a qualified adviser about lending, tax and licensing before you commit.