Business banking?

This comment from Tom in Feb 16 suggests Monzo will not be mad crazy strict on this (afterall, they have no need to channel sole traders into a business banking offer):

"We don’t plan to offer full business accounts because the requirements are so dramatically different. Multi-user access controls, card acquiring, accounting, invoicing, etc, etc

Sole-traders and freelancers are probably close enough to a personal current account that Mondo would work for those cases."

So it seems depends what you are looking for. If you need the integration into accounts etc, then look elsewhere (there are posts that can help on this). But if you just need to keep eg your freelancing transactions separate from personal ones, then it looks like Monzo would be happy if you are happy to use Monzo.

It really depends, if it’s the case you are paying cash you receive or transferring payment for freelance services from another bank account into your Monzo account for example, there isn’t really a problem.

However if you are soliciting payment using your link and receiving money directly from clients into your account in this way, this doesn’t fall under the definition of ‘personal use’ and isn’t included in an agreement with us to provide you with an account for personal use.


I was really thinking ahead to when the full current a/c comes along. If I give my employer(s) my Monzo a/c details, they should be able to pay my wages and any expenses they owe me as a BACS transfer (ludicrous for it to be otherwise). So if I work for them on a self employed basis, presumably they could do the same? If that is not the case, then I find it hard to reconcile Tom’s comment about freelancers/sole traders’ needs being pretty close to a personal account.

Here is the alleged Nationwide comment that they are okay with the above:

Payment via BACS from an employer won’t be a problem :slightly_smiling_face: As I mentioned, receiving payments via regularly is a more specifically problematic area. Generally, the nature of the job which someone would collect payments using would be different as the maximum amount you can pay in one transfer is £100.

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I think when you are self-employed but working solely for one client and receiving your regular monthly wage most banks regard that as being in effect the same as a permanent PAYE salaried job, it is when you are working for multiple clients and issuing invoices for services provided and charging them VAT then it tends to be seen as inappropriate for personal accounts

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Yes, a lot of banks turn a blind eye to it.

Nationwide are the only ones to specifically say it’s fine - their twitter team anyway.

I agree. If you at the VAT threshold or pay VAT then it’s inappropriate.

Most freelancers or contractors will want their own business account anyway, that’s where Tide, Coconut etc… come in, but they’ll be a few who do one-off jobs every now and again that will just want to use their personal account.

Hi, I’m after a service currently no banks offer, yet I know of a many people who would be interested.

I’m a sole trader, and due to my business, the amount of money and when I receive payments into my account varies greatly. What I am after (and my peers too) is a service that detects when money is paid into the account, and immediately takes 20% of that figure and transfers it to another account. That way at the end of the tax year I’ll alway have enough money for HMRC. Is this something Monzo would be able to implement?

Thanks, Ben

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Hi Ben,

I’ve moved your post here, as there’s some useful discussion about whether Monzo will offer business banking solutions earlier in the thread, I hope that helps :slight_smile:

I’d recommend checking out the other providers that’ve been mentioned, as unfortunately Monzo can only be awesome at so many things at once & so they’re more likely to offer a service that covers all of your needs.

This isn’t Business Banking, as I’m a sole trader. But I’ll check that out Coconut thanks.

A quick update on this, whereas the answer to whether or not Monzo will provide business banking has always been a flat no in the past, Tom changed his tone slightly at this month’s open office.

Rather than saying no, he mentioned that there’s are a few interesting things going on in the UK market which might mean that offering a business account could be interesting, in the next year or so. But he also made it clear that we shouldn’t expect anything within the next year.

This is only anecdotal but I’ve heard quite a lot of negative feedback about Tide so perhaps that conflict (Monzo’s investors Passion Capital also back Tide), will be going away :grimacing:

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Well, that’s an interesting turn.
I had come to the conclusion that for sole traders there is a differing idemand between (a) “business banking” with all of the associated services around invoicing and VAT and (b) using a current account simply to keep business transactions separate from personal ones. As the gig economy grows, the latter, for smaller sole traders (like me) is increasingly attractive.
Regarding Ben’s thought of 20% top-slicing of credits, maybe Monzo could look at a “savings pot” rule to automatically make such transfers.

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I’ve recently received my Monzo current account was was debating how I should use it. As someone who independant and a freelancer and is more interested in analysing business spending I’m willing to use it as a Business Account.

My understanding is that for Limited Co’s there’s a requirement to have a dedicated account :white_check_mark: and from what I gather some banks are ok (Nationwide but not Barclays). Does Monzo restrict me in from using it for business?

VAT does not worry my as I can do that elsewhere.

I’m not aware of any legal requirement to have a separate bank account for a limited company, but there is a legal duty to have company financial accounts so having a separate bank account makes the job a lot easier. That does not mean it needs to be a formal “business” account with those business-orientated bells and whistles, if you don’t need them.
As a sole trader with no company registration, any current account could do the job for me, providing there is nothing in the bank’s T&C’s to prevent it. I imagine bank’s that sell business accounts are more likely to object to a customer using a personal account product for business. I haven’t found anything in Monzo T&C’s to prevent using the CA for this sort of self employed /gig usage
The important thing for me is to be able to export a transactions report from a bank account as a CSV for my records and doing tax self assessment. Android Monzo doesn’t provide that yet, but will do, I understand, at full launch.

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Just wondering if Monzo will ever offer a business prepaid facility in terms of one profile but more than one card linked to that profile? I require a prepaid option where by cards can be issued to freelancers to use for business purchases that I can keep track of under one umbrella. Each freelancer/ cardholder would require access to their own online app to track their balance and expenditure. Any suggestions?

Nobody can say yes or no to this ‘ever’ being done but it’s clear at the moment that Monzo have:

  1. No current plans for business facilities
  2. No current plans for pre-paid facilities

so if you want a prepaid business card you are doublely out of luck


You can also try Expend

The most recent Business Account discussions are here: