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In our experience, the question isn't whether Starling is a good bank. It usually is. The real question is whether your business fits the current version of the account. Starling is not taking new applications for business loans or overdrafts, and its US dollar account is closed to new applicants. Sole traders also face a much lower cash cap than limited companies. A freelancer paid by bank transfer will rarely notice any of this. A cash-heavy sole trader or a company counting on its bank for an overdraft will notice quickly.
This review covers what Starling offers UK sole traders and small businesses, how its two account types and accounting plans compare, what it costs in practice, how safe your money is, and which businesses it suits best.
TLDR: Is Starling Worth It?
Yes, for most UK sole traders, limited companies and LLPs that bank digitally and don't need to borrow from their bank. Starling is a fully licensed UK bank with FSCS protection. It has no monthly fee, free UK payments, and free invoicing and Making Tax Digital software. In the independent service quality survey published in August 2026, Starling ranked second among business current account providers for overall service quality, with 83% of customers saying they would recommend it.
Best for: sole traders, limited companies and LLPs that are paid by card or bank transfer, want free built-in bookkeeping, and handle little cash.
Think twice if: you need a business overdraft or loan, which Starling isn't currently offering. The same goes if you're a sole trader paying in more than £20,000 in cash a year, you need a US dollar account now, or you're a general partnership or unregistered charity.
The setup most need: the free account plus Accounting Essentials, which is also free. Add Accounting Plus only if you're VAT-registered and want to file VAT returns from the app.
Starling at a Glance
The table below summarises Starling's published terms as of October 2026.
Feature | Starling |
|---|---|
Account provider | Starling Bank Limited, full UK banking licence (FCA register 730166) |
Account types | Sole Trader Account; Business Account for limited companies and LLPs |
Monthly fee | £0 |
Eligible business types | Sole traders, limited companies by shares and LLPs |
UK transfers | Free, in and out |
Invoicing | Free on every account |
Making Tax Digital software | Free for Income Tax; VAT returns need Accounting Plus (£7 a month until April 2027, then £14) |
Accounting integrations | Xero, QuickBooks and FreeAgent, free |
Cash deposits | 0.7% at the Post Office (£3 minimum fee) |
Cash deposit limits | Sole traders £5,000 a day and £20,000 a year; limited companies and LLPs £100,000 a year |
Cheque deposits | Free, in the app or by freepost |
Currencies held | GBP, plus an optional euro account (£2 a month); US dollar account closed to new applicants |
Borrowing | Not currently accepting new applications |
FSCS protection | Up to £120,000 on eligible deposits |
Branches | None |
What is Starling?
Starling is a UK digital bank founded in 2014. It launched business accounts in 2018. Today, it says more than 500,000 business owners bank with it.
The bank is profitable and well established. For the year to 31 March 2026, Starling Group reported its fifth consecutive year of profit, with profit before tax of £217.1 million, slightly down on the year before. Revenue fell from £940m to £887m as interest income dropped with lower rates, and the group said 56% of its SME customers use Starling as their main bank.
Business and personal accounts are run by the same regulated entity. Starling Bank Limited is registered in England and Wales (company number 09092149), authorised by the Prudential Regulation Authority (PRA), and regulated by both the Financial Conduct Authority (FCA) and the PRA under registration number 730166.
That's an important distinction from several fintech names Starling is often compared with. Tide and ANNA, for example, are electronic money institutions (EMIs), which safeguard your money rather than offering deposit protection.
At its core, Starling lets you:
Open a sole trader or limited company account online, with no monthly fee
Send and receive UK payments at no cost
Create and send invoices, track bookkeeping and file Making Tax Digital updates for free
Ring-fence money for tax and overheads using Spaces
Pay in cash at the Post Office and cheques through the app
Get 24/7 UK-based support by phone, chat or email
How Does Starling Work?
Sole Trader Account vs Business Account
Unlike Monzo, which sells one account on three paid tiers, Starling offers two separate free accounts for different business types. Which one you open depends on how your business is set up, not on how many features you want.
Feature | Sole Trader Account | Business Account |
|---|---|---|
Who it's for | Self-employed individuals | Limited companies by shares and LLPs |
Monthly fee | £0 | £0 |
Cash deposit limit | £5,000 a day, £20,000 a year | £100,000 a year |
Accounting Essentials | Free | Free |
Multiple directors | Not applicable | Free, with proof of position |
Euro account | Available (£2 a month) | Available (£2 a month) |
US dollar account | Not available | Closed to new applicants |
An individual can hold up to two sole trader accounts, as long as each is for a different business. That's useful if you run two separate ventures and want the books kept apart.
Accounting Essentials and Accounting Plus
Starling's paid Business Toolkit has been replaced by Starling Accounting, which comes in two tiers.
Accounting Essentials is free. It covers Making Tax Digital for Income Tax submissions, real-time tax estimates, a deadline timeline, automated bookkeeping with receipt matching, and view-only access for people like your accountant. Invoicing is also free, and limited companies get profit and loss reports, balance sheets, a dividends-available figure and a running Corporation Tax estimate.
Accounting Plus is for VAT-registered businesses. It adds automated VAT calculations and direct VAT return submission to HMRC, costing £7 a month until April 2027 and then £14 a month, with no contract.
Starling estimates your Corporation Tax, but limited companies still have to file the Corporation Tax return itself using separate software.
Who Can Apply?
The two accounts have different rules.
Sole Trader Account. You must be a UK resident aged 18 or over, trading on your own rather than in a partnership or through a limited company or LLP. You can apply without a Unique Taxpayer Reference (UTR) if you don't have one yet.
Business Account. Your business must be a limited company by shares or an LLP registered at Companies House. Every person with significant control (PSC) must be an individual living in the UK, so companies with corporate shareholders can't apply. Other conditions include:
Every director with access to the account must be a UK resident
The person applying must be over 18, and both a PSC and a director (or limited partner)
The business can't be a holding company, dissolved or in any insolvency process
The account can't be used to hold client money
General partnerships, and charities that aren't registered as limited companies, aren't supported. Starling also publishes a list of industries it won't bank, so check it before you apply.
In our experience, the eligibility rule that catches people out most is the corporate shareholder one. If your company is owned by a holding company, Starling won't open an account for it, however small the business is.
How Fast is Account Opening?
For most applicants, it's quick. You apply online, upload documents about yourself and the business, and wait for a decision before your card is posted. Limited company applications ask for more detail than sole trader ones, and some reviewers describe the process as lengthy. Have your Companies House details and proof of trading ready before you start.
Why Starling is Popular With Sole Traders and SMEs
Free Invoicing and MTD Software
Starling's HMRC-recognised Making Tax Digital for Income Tax tool is included free in every sole trader account, and lets you submit quarterly updates directly from the app. That matters more in 2026 than it did a year ago, because Making Tax Digital for Income Tax now requires many sole traders to keep digital records and send quarterly updates.
Most providers either charge for bookkeeping tools or require a separate subscription. Getting invoicing, bookkeeping and MTD software inside a free account is a real saving. Our guide to business bank accounts with Making Tax Digital software compares how other providers handle it.
Spaces for Tax and Overheads
Spaces let you ring-fence money inside your account for tax bills, VAT, payroll or overheads. They're available on both account types at no cost. For limited companies, the running Corporation Tax estimate tells you roughly how much to put aside.
Spaces don't do your tax return for you. In practice, though, they make it much harder to spend money that was always going to HMRC.
24/7 UK Support and Highly-Rated App
Starling offers 24-hour help by phone, in-app chat and email. Many digital rivals limit phone support or keep it to business hours, so this stands out for owners who want to speak to someone when a payment goes wrong.
The service quality rankings back this up. In the August 2026 survey, Starling placed second for overall service quality among business current account providers, two points behind Monzo. These surveys measure whether customers would recommend their bank, not fees or features. Even so, a consistent top-three placing is hard to ignore.
Features of Starling Business Accounts
No monthly fee
Both the Sole Trader Account and Business Account are free to hold, with no payment allowance to watch.
Free UK payments
Starling doesn't charge transaction fees on payments to or from UK bank accounts.
Starling Accounting
Free invoicing, bookkeeping and Making Tax Digital software for Income Tax. VAT returns need Accounting Plus.
Accounting integrations
Xero, QuickBooks and FreeAgent connect at no extra cost.
Spaces
Ring-fence money for tax, VAT and overheads.
Multiple directors
Other directors can be added to a Business Account free of charge, with proof of their position.
Free cash withdrawals
Up to six free ATM withdrawals a day, to a total of £300, in pounds or a foreign currency.
International payments and spending
Send payments to accounts in 34 countries, and spend or withdraw abroad without fees from Starling.
Cash and cheque deposits
Cash at the Post Office for 0.7% (£3 minimum fee). Cheques for free through the app or by post.
Connected accounts
If you bank elsewhere too, you can view those business accounts in Starling's Online Bank.
Web access
Full online banking on a laptop or desktop, alongside the mobile app.
Starling Pricing Structure
Starling's pricing splits into three areas: optional add-ons, international payments, and cash handling.
Account and Add-On Fees
This table reflects Starling's published pricing as of October 2026.
Item | Cost |
|---|---|
Sole Trader Account | £0 a month |
Business Account | £0 a month |
Accounting Essentials (invoicing, bookkeeping, MTD for Income Tax) | Free |
Accounting Plus (VAT returns) | £7 a month until April 2027, then £14 a month |
Euro account | £2 a month |
US dollar account | £5 a month (closed to new applicants) |
Xero, QuickBooks and FreeAgent integrations | Free |
Payment and Transaction Fees
Service | Cost |
|---|---|
Sending and receiving GBP within the UK | Free |
Direct Debits and Standing Orders | Free |
CHAPS payment | £20 per payment |
International payment via SWIFT | £5.50 delivery fee plus 0.4% transfer fee |
International payment via low-cost local network | From 30p delivery fee plus 0.4% transfer fee |
Converting between your GBP and euro accounts | 0.4% |
Card spending and ATM withdrawals abroad | No fee from Starling |
SWIFT delivery costs £5.50 whatever the currency, while the low-cost route goes through Starling's network of partner banks and starts from 30p. Both carry a 0.4% transfer fee. Starling suggests SWIFT for important payments such as bills, because it can't guarantee partner banks pass on your name and reference exactly as entered on the low-cost route.
Cash and Cheque Deposits
Every cash deposit costs 0.7% of the total or £3, whichever is higher, and the smallest single deposit you can make is £3.01. In practice, that £3 minimum means any deposit under about £430 costs the same £3.
The bigger difference is the limit. Sole trader accounts can take up to £5,000 in cash a day and £20,000 in a calendar year. Limited companies and LLPs can deposit up to £100,000 a year.
For limited company accounts, cheques can be paid in through the app if they total £5,000 or less a day and no single cheque is over £1,000. Larger amounts go by post. Cheque deposits are free either way.
What Do You Actually Pay Each Month?
We worked through some common business patterns using Starling's published fees. "Free" holds true for most digital businesses, but not all of them.
Business pattern | Account | Estimated cost |
|---|---|---|
Sole trader paid by card and bank transfer, no cash, not VAT-registered | Sole Trader | £0 |
Sole trader paying in £300 in cash once a week | Sole Trader | £12 (4 deposits at the £3 minimum) |
VAT-registered limited company filing VAT from the app | Business | £7 until April 2027, then £14 |
Café paying in £1,500 in cash once a week | Business | £42 (4 deposits at £10.50) |
Limited company sending two £2,000 SWIFT payments a month | Business | £27 (2 × £8 transfer fee plus £5.50 delivery) |
Limited company holding a euro account to receive and pay euros | Business | £2 |
Estimates calculated from Starling's published fees, October 2026. Excludes exchange rate movements and any intermediary bank charges on SWIFT payments.
How Does Starling Compare on Cash Handling?
Starling is often described as the digital bank for cash. For limited companies, that holds up. For sole traders, it doesn't.
Provider | Cost of a £1,000 cash deposit | Deposit limit |
|---|---|---|
Starling | £7 (0.7%, £3 minimum) | £20,000 a year (sole traders), £100,000 a year (limited companies and LLPs) |
Monzo | £1 | £3,000 a month (sole traders), £10,000 a month (limited companies) |
Zempler | £5.50 (0.55%, £4 minimum) | £6,000 a day |
The result is that Starling costs more per deposit than Monzo. Monzo's sole trader limit also works out at up to £36,000 a year, nearly double Starling's £20,000. For a limited company paying in large lump sums, Starling's £100,000 annual limit is more flexible than Monzo's monthly cap. For a sole trader taking regular cash, Monzo may be the better digital option.
Our guide to small business bank accounts covers providers built for heavier cash use.
Can You Borrow With Starling?
Not at the moment. Starling says it isn't accepting applications for business overdrafts or loans, and will update its website if that changes. That pause also covers requests to increase an existing overdraft limit.
This is the biggest gap between Starling's reputation and today's account. Many comparison sites still list Starling overdrafts of £1,000 to £50,000 and loans up to £250,000. Those products existed, and existing customers may still have facilities in place. New applicants can't currently get them.
If you think you'll need an overdraft in the next year or two, factor that in before you switch your main business banking. A high street bank or a lender built for small businesses may be a better fit.
Our guide to alternative lenders for SMEs when banks say no explains the wider market, and sole traders should read whether sole traders are eligible for loans.
Is Starling Safe to Use?
For a small business owner weighing a digital bank against a high street name, this is often the first question.
FCA and PRA Authorisation
Starling Bank Limited:
Company number: 09092149
Financial Services Register number: 730166
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the PRA
Holds a full UK banking licence
Starling reported no major operational or security incidents affecting mobile or internet banking in the 12 months to 30 June 2026.
FSCS Protection
Because Starling is a licensed bank and not an e-money institution, eligible deposits are protected up to £120,000 by the Financial Services Compensation Scheme (FSCS). The same cover applies to eligible deposits in its euro and dollar accounts, at the equivalent amount.
Feature | Starling | Typical EMI |
|---|---|---|
FCA and PRA regulated | Yes | FCA-regulated only |
Full UK banking licence | Yes | No |
FSCS protection | Yes, up to £120,000 | No, safeguarding only |
Overdrafts and loans | Not currently accepting applications | Varies, often via partners |
The 2024 FCA Fine
Being honest about safety means covering the regulator's findings too. In October 2024, the FCA fined Starling £28,959,426 for financial crime failings related to its sanctions screening. The FCA found that Starling's controls hadn't kept pace with its growth from around 43,000 customers in 2017 to 3.6 million in 2023, and that from 2017 its automated system had screened customers against only part of the sanctions list.
It also found Starling had opened more than 54,000 accounts for high-risk customers between September 2021 and November 2023, despite agreeing not to. The FCA confirmed Starling has set up programmes to fix the breaches and strengthen its wider financial crime controls.
This fine doesn't affect your deposit protection. It does help explain why Starling now asks for detailed business evidence at application, and why some customers report accounts being restricted or closed during checks.
Terms and Conditions to Check
Several parts of Starling's terms are worth reading before you commit.
No new lending
Starling isn't currently accepting overdraft or loan applications, including limit increases. Don't choose Starling expecting to borrow from it.
Sole trader cash cap is annual and low
At £20,000 a year, a sole trader paying in a few hundred pounds a week could hit the limit before year-end.
Minimum cash fee
Every cash deposit costs at least £3, so frequent small deposits are proportionally expensive.
VAT returns cost extra, and the price doubles
Accounting Plus is £7 a month until April 2027, then £14 a month. Budget £168 a year from then if you're VAT-registered.
US dollar account closed to new applicants
Starling isn't taking new applications for its US dollar business account, though it says they'll reopen.
No corporate shareholders
Limited companies owned by another company can't open a Business Account.
Corporation Tax filing isn't included
You'll still need separate software or an accountant to file the return.
What is Starling Good At?
Free everyday banking with no tiers
No monthly fee, free UK payments, and no plan to upgrade to unlock basics.
Free accounting tools
Invoicing, bookkeeping and Making Tax Digital software for Income Tax, without a subscription.
24/7 human support
Phone, chat and email support around the clock, which many digital rivals don't match.
Limited companies and LLPs welcome
Starling accepts LLPs, which Monzo doesn't.
Higher cash limits for companies
£100,000 a year for limited companies and LLPs suits businesses that pay in larger, less frequent sums.
Who is Starling Best Suited To?
Starling is particularly suited to:
Sole traders and freelancers who bank digitally
If you're paid by card or bank transfer and want free MTD software and invoicing, the Sole Trader Account covers most of what you need for free.
Limited companies and LLPs with modest admin needs
Directors who want free banking, built-in bookkeeping and a Corporation Tax estimate, without paying for software.
Businesses that value phone support
24/7 UK support suits owners who'd rather call than wait for chat replies.
Companies paying in occasional larger cash sums
A £100,000 annual limit works if cash arrives in lumps rather than every day.
Businesses with some euro trade
A £2 euro account with its own IBAN handles occasional European customers and suppliers cheaply.
If a free account, built-in bookkeeping and round-the-clock support matter more to you than borrowing or multi-currency features, Starling is one of the strongest options in the UK.
Who Would Be Better Served by Alternatives?
Starling isn't the right fit for every business. Several situations call for something else.
You need an overdraft or business loan
Starling isn't currently lending to new business customers. Our Starling vs Lloyds comparison looks at a high street bank with a full lending suite.
You're a sole trader handling regular cash
Starling's £20,000 annual cap is low. Monzo's monthly allowance works out higher and costs £1 per deposit. See our Starling vs Monzo comparison.
You trade internationally in dollars or several currencies
Starling's US dollar account is closed to new applicants. Our Airwallex review covers a platform built for cross-border payments.
You want a simple account with bundled accounting
Our Starling vs Mettle comparison looks at a free alternative with FreeAgent included.
You've been turned down or have a thin credit history
Our Zempler Bank review covers a licensed bank that doesn't run a credit check on application. If Starling has already declined you, read our guide on what to do when a business bank account application is rejected.
Common Misconceptions About Starling
"Starling offers business overdrafts and loans."
Not to new applicants right now. Starling has paused all business overdraft and loan applications, including limit increases.
"You have to pay £7 a month for Starling's invoicing."
Not any more. The old Business Toolkit has been replaced, and invoicing is now free. The £7 fee is for Accounting Plus, which adds VAT returns.
"Starling is the best digital bank for cash."
It depends on your business type. Limited companies get a high £100,000 annual limit, but sole traders are capped at £20,000 a year. Starling also charges more per deposit than Monzo.
"Sole traders and limited companies get the same account."
They're separate products with different eligibility rules and cash limits.
"Digital banks don't offer phone support."
Starling offers 24/7 support by phone as well as chat and email.
What Real Customers Say About Starling
Starling has a Trustpilot TrustScore of 4.3 out of 5 from around 48,000 reviews, as of October 2026. Starling has one Trustpilot profile covering personal and business customers, so it isn't a business-only rating. For business-specific satisfaction, the service quality survey results are a more reliable guide.
Positive reviews tend to praise the app, quick account setup and budgeting tools. Negative reviews tend to focus on unexpected account closures with little explanation, blocked transactions, and delays getting help with urgent disputes. That pattern is common across UK digital banks and isn't unique to Starling, but it's worth knowing if your business can't afford a few days without access to its account.
FAQs About Starling
Is Starling business banking free?
Yes. Both the Sole Trader Account and Business Account have no monthly fee, and UK payments are free. Costs only apply to cash deposits, international payments, the euro account and Accounting Plus.
Can sole traders open a Starling account?
Yes. Sole traders open the separate Sole Trader Account. You must be a UK resident aged 18 or over, and you can hold up to two sole trader accounts for different businesses.
Can an LLP or partnership use Starling?
LLPs can, through the Business Account. General partnerships and charities that aren't registered as limited companies can't.
Is my money protected with Starling?
Yes. Starling holds a full UK banking licence, so eligible deposits are protected by the FSCS up to £120,000.
Does Starling offer business overdrafts or loans?
Not currently. Starling isn't accepting new applications for business overdrafts or loans, or for increases to existing limits.
Can I deposit cash in a Starling business account?
Yes, at the Post Office for 0.7% of the deposit (£3 minimum fee). Sole traders can pay in up to £5,000 a day and £20,000 a year. Limited companies and LLPs can pay in up to £100,000 a year.
Does Starling include Making Tax Digital software?
Yes, for Income Tax, free on every account. VAT returns need Accounting Plus, at £7 a month until April 2027 and £14 a month after.
Does Starling work with Xero?
Yes. Starling connects to Xero, QuickBooks and FreeAgent at no extra cost.
Can I hold foreign currencies with Starling?
Euros, yes, through a £2-a-month euro account. The US dollar account is currently closed to new applicants.
Alternatives to Starling
If you want to compare Starling with its closest digital rival, our Starling vs Monzo comparison puts the two side by side, and our Monzo review covers Monzo in depth.
If you're weighing a wider range of business tools, our Tide vs Starling comparison covers an EMI alternative.
If you'd like accounting software bundled in, our Starling vs Mettle comparison shows how they compare.
If you need branch access or a bank that lends, our Starling vs Lloyds comparison covers the high street alternative.
If you're just starting out, our guide to the best bank accounts for new businesses rounds up providers built around fast approval.
If you're planning to move, our guide to switching business bank accounts without disrupting payments explains how the Current Account Switch Service works.
Verdict: Is Starling a Good Option?
Starling is still one of the best free business accounts in the UK. It's a fully licensed bank with FSCS protection. It charges no monthly fee, offers 24/7 support by phone, and now includes invoicing, bookkeeping and Making Tax Digital software for free. For a sole trader, limited company or LLP that's paid digitally, few accounts give you more without a subscription.
The limits have grown, though. Starling isn't lending to new business customers. Sole traders face a £20,000 annual cash cap and a £3 minimum deposit fee. The US dollar account is closed to new applicants, and VAT returns will cost £14 a month from April 2027.
In our experience, the businesses that get the most from Starling bank digitally, handle little cash and have a separate plan for borrowing. If that sounds like your business, Starling is a strong choice.
