Practical UK guidance on business bank accounts for wedding suppliers - what to open, documents required, FSCS limits, fees, and how to choose between digital challengers and high street banks.
Getting financially set for the big day season
Running a wedding business means handling deposits, balances and supplier payments with care. A dedicated business bank account keeps everything clean, professional and compliant. If you trade as a limited company in the UK, you are legally required to separate business finances. Sole traders are not forced to, but using a business account makes record-keeping far easier and helps you look professional when couples ask where their money is held.
With the right account, you can take payments simply, set aside tax, and keep calm through peak season. Modern business accounts plug into bookkeeping tools, capture receipts on the go and provide useful insights about cash flow. This guide walks through what to open, which documents to prepare, how FSCS protection works, and how to weigh digital challengers against high street banks - so you can focus on delivering unforgettable weddings.
Good banking hygiene builds trust with venues, suppliers and couples.
Who we wrote this for
This guide is for UK wedding professionals of all sizes - planners, photographers, florists, caterers, celebrants, DJs, venues, décor and hire companies. Whether you are a sole trader starting out or a limited company growing a team, you will find straightforward steps to open the right account, manage deposits safely and keep HMRC-ready records with minimal fuss.
The essentials in plain English
A business bank account is the current account your business uses to receive income and pay expenses. Limited companies must have one because the company is a separate legal entity. Sole traders may legally use a personal account, but a business account keeps taxes simpler, supports professional invoicing and helps evidence income if HMRC asks questions. It also unlocks business-specific tools like overdrafts, credit cards and loans.
Most providers offer account types for sole traders, limited companies and partnerships, plus business savings accounts for surplus cash. Digital challengers typically have low or no monthly fees and fast online applications. High street banks tend to offer broader lending and in-branch services. Pick what suits how you trade now - and what you may need in the next 12 to 24 months.
Step-by-step: opening an account without headaches
Start by gathering documents. You will usually need proof of identity and address for each owner or director - typically a passport or driving licence and a recent utility bill or bank statement. Add your business details: registered or trading address, contact information and, if applicable, Companies House number. Banks often ask new wedding businesses for basic trading evidence such as a website, invoices or social channels.
Limited companies should have their certificate of incorporation ready. Partnerships may need a partnership agreement. Sole traders may be asked for proof of self-employed registration or a recent tax return. Many digital providers let you upload scans and complete everything online - useful when you are on the road between site visits and client consultations.
Once open, connect the account to your bookkeeping software, set up payment links or invoices, and create separate spaces or pots to earmark VAT and income tax. That way, you avoid spending money that belongs to HMRC.
Why separation matters to you and your clients
Keeping business and personal money apart reduces errors and protects your position. For limited companies, separation is part of maintaining your legal status. For sole traders, it keeps records tidy, makes Self Assessment easier and presents a more credible image to couples and venues.
Eligible deposits held with UK-authorised banks are protected by the Financial Services Compensation Scheme up to £85,000 per banking licence. For limited companies, that limit is separate from the owner’s personal protection with the same bank. Sole traders are treated as one legal person - their personal and business balances with a single provider share one £85,000 limit. If you hold large advance deposits - common for venues or marquee hire - consider spreading funds across institutions to stay within limits during peak season.
A dedicated business account also improves cash flow management. Features like receipt capture, spending insights and invoicing help track many small deposits and staged payment plans, so you always know what is profit, what is owed to suppliers, and what is reserved for tax.
Pros and cons at a glance
| Pros | Cons |
|---|---|
| Clear separation of finances for compliance and professionalism | Monthly fees or transaction charges with some providers |
| Easier bookkeeping, tax returns and HMRC evidence | Cash deposit or international fees can be higher |
| Access to business tools - overdrafts, cards and loans | Application checks may delay opening if documents are incomplete |
| FSCS protection on eligible deposits up to £85,000 per licence | Sole traders share their FSCS limit across personal and business with the same bank |
| Integrations for invoicing, receipt capture and bookkeeping | Some app-only providers have limited in-branch services |
Watchpoints before you press apply
Check how the FSCS limit applies to your structure. If you are a sole trader and hold business and personal funds with the same provider, the £85,000 cap applies across both. Limited companies have a separate corporate limit per licence. Review fee structures carefully - some accounts are free or low cost, while others charge monthly plus extras for cash deposits, ATM withdrawals or international transfers. If you take cash at fairs, confirm cash deposit fees and the nearest participating branch or Post Office.
Look for features that match wedding-season cash flow. Pots for tax or VAT, invoice tools, and integrations with Xero, QuickBooks or FreeAgent can save hours. Multi-user access and permissions matter for teams. If you run destination weddings or serve overseas clients, multi-currency support can reduce friction. Finally, download and store historic statements before any future switch - transaction history rarely transfers automatically.
Keep deposits safe, taxes ring-fenced and paperwork ready for scrutiny.
Practical alternatives you can consider
- Keep your current provider and add a linked business savings account to ring-fence tax or deposits.
- Open a fee-free or low-fee digital challenger account for day-to-day payments while retaining a high street relationship for lending.
- Use a provider that offers sub-accounts or pots to separate client deposits, tax and operating expenses.
- For destination specialists, add a multi-currency or USD account to reduce FX fees on overseas bookings.
- If you handle significant cash, choose a high street bank with strong branch or Post Office cash services.
- For early-stage sole traders, start with a sole trader account, then upgrade to a limited company account if you incorporate.
Frequently asked questions
Q: Do I legally need a business account as a sole trader? A: Not legally, but it is strongly recommended. It keeps records clean, simplifies Self Assessment and looks professional to clients and venues.
Q: How long does opening an account take? A: Digital challengers can approve accounts within hours or a few days if documents are clear. High street banks may take longer due to in-branch checks and additional underwriting.
Q: How does FSCS protection work for my business? A: Eligible deposits are protected up to £85,000 per UK banking licence. Limited companies have their own £85,000 limit. Sole traders share one limit across personal and business with the same provider.
Q: Should I split large client deposits across banks? A: If balances could exceed £85,000 at busy points, consider spreading funds across different banking licences to stay within FSCS limits.
Q: What fees should I expect? A: Some accounts are free or have introductory offers. Others charge monthly plus extra for cash deposits, ATM use or international payments. Match the fee model to how you actually trade.
Next steps that make life easier
- List your must-have features: bookkeeping integration, pots, multi-user access.
- Gather ID, address proof and business documents before applying.
- Shortlist one digital challenger and one high street bank, then compare fees and FSCS considerations.
- Open a savings or pot for tax the day your account goes live.
Set up your account before peak bookings start - it avoids delays with deposits.
How Switcha can help
Choosing a business bank account should be simple. Switcha will connect you with the best options for what you’re looking for, based on your business type, trading pattern and priorities. We keep the guidance clear and transparent so you can open the right account quickly and move on to serving your couples with confidence.
Important information
This guide provides general information for UK businesses only and is not financial or legal advice. Always check details with your chosen provider and consider professional advice tailored to your circumstances. Features and eligibility can change, and FSCS protection applies to eligible deposits only.
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