Free bank account for your limited company? Sure, here’s why

Freelancers and contractor limited companies are facing new financial challenges following the now in-force April 6th tax increases.

From higher National Insurance Contributions to a steeper BADR rate, the latest tax changes will create new financial challenges for contractors, making staying on top of the money side of things critical.

For limited companies, April tax changes should spark a fixed costs review

As the UK moves closer towards fuller Making Tax Digital, which I’ll explore here as MTD will likewise impose a cost, it’s now more important than ever to review the fixed costs of your limited company (sometimes called a Personal Service Company).

A good review should probe not just whether you could be paying less for your accountant or accounting platform but whether you could also be paying less for your business bank account. And it’s here we’re stepping in to invite you to pay nothing, writes Nick Biggam, commercial director at Zempler Bank.

Who we are, and what we’ve seen

First, just a bit more about us. We’re a bank that specialises in offering accounts to micro businesses and freelancers.

We’ve seen that financial stability empowers contractors to make informed business decisions, plan for the future, and avoid cash flow issues that could hold them back.

While we know managing money isn’t just about reacting to tax hikes, for many freelancers, banking choices are now dictated by one key factor: costs.

How Zempler eases financial heavy lifting (includes special offers)

Understanding these challenges and the new financial pressures facing contractors, our bank now offers a business bank account with no monthly fee.

The account (‘Business Go’) comes with features designed to make financial management easier.

But there’s more. For contractors freshly considering a Personal Service Company, we have a proposition which includes forming a limited company and opening a business bank account free of charge.

ContractorUK readers selecting this offer will have their company registration fee (of £50) refunded and then receive a £100 credit if they also select to open a ‘Go’ account, once they deposit £100 of funds into this account. We believe this offer is great for new contractors not yet set up and it can be accessed here.

Best bits of Business Go, ranked

Some of the most useful tools on the account include:

1. Tax Pots: Automatically set aside a percentage of income for tax bills, reducing the risk of shortfalls.
2. Spend Categorisation: Easily track business expenses, making end-of-year accounting smoother.
3. Receipt Capture: Instantly store and organise receipts, eliminating paperwork headaches.
4. Invoicing Feature: Generate and send invoices seamlessly, ensuring timely payments.
5. Accounting Integrations: Compatible with all major accounting platforms, simplifying tax returns and reporting.
6. Making Tax Digital VAT tool: If you’re VAT registered, you can use our banking app to easily submit your VAT return.

The features of our free limited company bank account not only save contractors time, but they’re designed to provide a structured approach to better financial habits -- essential for long-term business success.

Further relating to that long-term, and to feature 6, above, if you’re not affected already, are you prepared for HMRC’s Making Tax Digital?

Preparing for (more) Making Tax Digital

With Making Tax Digital (MTD) on the horizon for any self-employed person taking home over £50,000, such business soloists will soon be required to file their income tax self-assessment return digitally.

Although this widening of MTD might not apply to every ContractorUK reader, it’s likely that corporation tax is going to be impacted similarly in the not-too-distant future. That represents a further extension of MTD which would significantly swell the numbers of contractors affected by HMRC digitisation.

MTD-ready? Zempler is, but are you?

If you’re a VAT-registered limited company contractor, you’re already required to submit your VAT return via an MTD-enabled digital platform.

To the currently uninitiated, MTD’s growth means that efficient financial tracking won’t just be a nice-to-have on their bank account -- it will become mandatory.

The 2025-26 tax year could be the best time to act…

Contractors outside of MTD today but who adopt smart banking tools sooner rather than later will be better prepared for seamless tax compliance when the regulations come into effect. With the onset of 2025-26, now is an ideal time to convert.

So that pretty much explains feature 6 on our free business account.

Of course, we’re not alone. But for our part, we're now actively supporting Making Tax Digital, by enabling VAT-registered traders to submit their VAT return from within the app.

Being in business on your account isn’t always plain sailing, of course, no matter how much infrastructure or smart the technology is that you adopt. Indeed, while freelance contracting still offers flexibility, it also comes with financial unpredictability.

Uncertainty makes good money management essential for contractors

Income can fluctuate month to month, expenses need careful tracking, and tax obligations must be met.

Improving financial management -- with a business current account tailored to them -- allows contractors to:

• Maintain Cash Flow: Understanding income and expenses ensures businesses aren’t caught off guard by surprise costs.
• Prepare for Tax Bills: Setting aside funds for taxes prevents scrambling when payment deadlines arrive.
• Plan for Growth: Having financial clarity makes it easier to invest in equipment, marketing, or training.

Turn up the (current account) control you have over your company money

Outside of your accounting platform, your bank account can also be a powerful tool when looking to improve the control you have over your money.

If ‘control over your money’ resonates with you -- and we suggest it should at a time of swingeing costs -- you can read our FAQs about who we’re accepting for a ‘Go’ account, for which there’s no monthly charge.

Managing money isn’t just about reacting to tax hikes. But April’s perfect storm of HMRC bill increases means no response at all just isn’t an option, particularly if you’re a shrewd limited company contractor who likes to practice a little prudence.