Business Bank Accounts for Takeaways

Get your takeaway’s money in order

Running a takeaway means juggling cash, card payments and delivery‑platform payouts while keeping suppliers paid and tax set aside. A dedicated business bank account helps you keep everything tidy and transparent. If you operate a limited company, a business account is a legal requirement. Sole traders are not legally required to have one, but separating your finances makes life far simpler at tax time and gives lenders and payment providers the clean records they expect.

The right account should streamline day‑to‑day banking, connect smoothly with your POS and delivery apps, and help you plan for VAT, PAYE and Corporation Tax. Whether you choose a high‑street bank with in‑person support or a digital provider with speedy onboarding, the goal is the same: reduce admin, cut avoidable fees and keep cash flow predictable.

A clear audit trail today is the best protection against HMRC headaches tomorrow.

Who this guide will help

This guide is for UK takeaway owners and managers, whether you are launching your first site from a home kitchen or scaling a small chain on the high street. It is equally useful for sole traders weighing up digital accounts and limited companies seeking broader lending or merchant services. If you accept cash, rely on delivery platforms, or plan a fit‑out loan, you will find practical steps here.

What a business account does for a takeaway

A business bank account acts as the financial hub for your takeaway. It keeps personal and business funds separate, making VAT calculations clearer and providing statements that lenders, card acquirers and landlords recognise. Many accounts integrate with bookkeeping tools such as Xero, QuickBooks and FreeAgent to reconcile card takings and online orders automatically. That automation is especially helpful when you process lots of small transactions each day.

Modern accounts go further. App‑based banking gives real‑time alerts, spending controls and separate “pots” to set aside money for tax from every payout. If you are cash‑heavy, the ability to deposit takings via the Post Office or PayPoint matters, though fees can apply. If you are growth‑focused, access to overdrafts, loans and merchant services can be decisive. For new takeaways, introductory free‑banking periods can ease early cash flow before standard tariffs start.

How to choose and set up without delays

Start with the basics: business structure, expected turnover, payment mix and need for cash deposits. Limited companies must open a business account, while sole traders should weigh the admin savings and eligibility benefits that come with separating finances. List your must‑haves: cash deposit facilities, delivery‑platform reconciliation, low card‑linked fees, and accounting integrations.

Gather documents early to avoid delays. Directors will need proof of ID and address, plus company registration details and the business address. Sole traders typically provide ID and evidence of trading such as HMRC registration or invoices. Banks will also ask about your expected turnover and the nature of your business, including any food licensing and premises information. Digital providers may approve you quickly via an app, but standard KYC and anti‑money‑laundering checks still apply.

If switching, consider the Current Account Switch Service. Many providers can move direct debits, standing orders and incoming payments within around seven working days. Plan the switch for a quieter trading window and update your merchant acquirer, POS and delivery platforms so payouts continue without interruption.

Set up tax pots on day one. Future‑you will thank you when VAT is due.

Next steps to get moving

• Shortlist three providers that match your cash handling, integrations and support needs.
• Check introductory free‑banking periods against realistic monthly transaction volumes.
• Confirm cash deposit fees via Post Office or PayPoint and any minimum charges.
• Prepare ID, address documents and company or HMRC details before you apply.
• Schedule a CASS switch during a quieter week and update payout details everywhere.

Why the right choice really matters

Margins in takeaway businesses are tight. Choosing an account with a sensible mix of fees and features can noticeably improve cash flow. Cash deposit charges of around 0.6 to 0.7 percent, often with minimums, can erode profit if you bank notes daily. Likewise, digital providers with no monthly fee may charge per transaction or for extras, which adds up with high order volumes. A good fit balances those costs with tools that save time, like automated reconciliation and receipt capture.

Safety matters too. Most UK business current accounts from authorised banks are covered by the Financial Services Compensation Scheme up to the scheme’s limit per eligible business and per banking group. Sole traders should remember that the limit is shared across personal and business balances with the same bank, while limited companies typically have a separate business limit. If you hold large balances from busy weeks or refurbishment loans, consider spreading funds to manage concentration risk or using accounts with strong safeguarding where FSCS does not apply.

In short, the right partner reduces admin, improves resilience and helps you access lending or merchant services when you need them.

Traditional banks or digital challengers?

Pick based on everyday realities: how you take payments, how often you bank cash, and how quickly you need to get started.

Pros and cons at a glance

Watch the fine print before you apply

Look closely at cash handling. If you bank cash daily, a small percentage fee plus minimum charges can exceed a simple monthly fee elsewhere. For card takings, check how your account reconciles payouts from delivery platforms and whether statement data is detailed enough for your bookkeeper. If you plan to scale, consider whether the provider offers overdrafts, asset finance or easy links to card acquirers.

Confirm what protection applies to your money. Some app‑based accounts are offered by fully licensed banks, meaning FSCS protection applies. Others are e‑money institutions that use safeguarding rather than FSCS. Understand the difference and how it affects large balances. Finally, keep an eye on the end date of any free‑banking period and model your costs under the standard tariff so there are no surprises when charges begin.

Sensible alternatives if you are not ready to commit

1. Use a basic digital business account with no monthly fee to get trading quickly, then upgrade once volumes stabilise.
2. Open a high‑street account for cash deposits and a digital account for day‑to‑day spending, using each where it is strongest.
3. Consider merchant accounts that settle to your chosen bank daily, ensuring statements and payout references stay consistent for reconciliation.
4. If you are still pre‑trade, use a provider that supports applications before your first sale so you can accept card payments from day one.

Frequently asked questions

Do I legally need a business bank account for my takeaway?

Limited companies do. Sole traders are not legally required to, but separating finances is strongly recommended for tax clarity and lender expectations.

How do free‑banking periods work?

Many UK banks offer 12 to 30 months of reduced or no monthly fees for startups. After that, standard tariffs apply. Always model your real transaction volumes against the post‑intro pricing.

What should I know about cash deposits?

Deposits via the Post Office or PayPoint often incur a percentage fee, commonly around 0.6 to 0.7 percent, sometimes with minimum charges. If you bank cash often, compare these costs carefully.

Is my business money protected?

If your account is with a UK‑authorised bank, eligible deposits are protected by the FSCS up to the scheme limit per banking group. Some e‑money accounts are not FSCS‑protected but use safeguarding. Check your provider’s status.

Can I switch without disrupting payouts from delivery apps?

Yes, if you plan it. Use the Current Account Switch Service, time the switch for a quiet period, and update bank details with your merchant acquirer, POS and delivery platforms before payouts are due.

How Switcha can help

Choosing a business account should be simple, not time consuming. Switcha will connect you with the best options for what you are looking for, based on how your takeaway trades today and where you want it to go next. Clear comparisons, side by side, so you can decide with confidence.

Important information

This guide is general information, not financial advice. Banking features and tariffs change regularly. Check eligibility, fees and protection status directly with providers before applying, and speak to a qualified adviser if you need personalised guidance.