Paying new payee, I am asked if the account is business or personal and I often don't know, advice


I don’t usually get asked this question on my other banks, and whenever I ask for someone’s digits, they don’t usually tell me whether it’s a business account or personal account, nobody really gives this info out in the UK in terms of UK norms, even when I receive an invoice from a tradesperson.

I deal with a lot of tradesmen in the building industry, many are self-employed, of which, you can trade under a personal current account or a sole trader business account.

So when I am trying to pay them, and Monzo is asking me if their sort code and account details are for a personal or business account with no option to skip this question, during times where I don’t wish to cancel the transfer message the trades person and wait for their response and just wish to make the transfer and be done with it.

What difference does it make to anyone what we answer to this question?

Ideally if it makes no difference I will just choose any so I can make the transfer.


It’s an additional check to make sure the details match to try and prevent fraud. It doesn’t matter what you select if you ignore the warning that may or may not come afterwards.

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This is common place, HSBC also does this, as well as Natwest. I can’t see it changing any time soon.

And Santander.

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Also, paying into a business account will generally require a reference i.e. your account number with the business, whereas you generally wouldn’t need that for a personal account payment.

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