Partnership Bank Account: Do I need a joint business account?

Setting up a business partnership? If you’re the co-owner of a partnership, you’ll have a long to-do list in your first few months. One thing you may be looking at is whether to set up a dedicated business account for your new organisation.

In this guide, we’ll cover all you need to know about the basics of partnership bank accounts. This includes the benefits of business bank accounts for partnerships, and all the legal stuff about who needs to have one - including how the April 2026 Making Tax Digital (MTD) changes may make opening a business account more urgent.

Plus, info on the benefits of having a Wise Business account, particularly for sending and receiving overseas payments.

So, let’s get started.

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Do I need a business bank account for a partnership?

When it comes to the legal structures of businesses, there are a few different types of partnership.

Limited liability partnerships (LLPs) do need a separate business bank account. But if you have a general partnership, it isn’t mandatory for you to have a dedicated business bank account.¹

If you prefer, you can keep using a personal account for business transactions, just like a sole trader.

But there are certain benefits to having a dedicated business account. You might want to consider these when choosing a bank account, as it can affect the running of your business now and in the future.

When do you need a business bank account for a partnership?

If your business is a limited partnership (LP) or limited liability partnership (LLP for short), then you are required to set up a business bank account for your partnership.¹

This is because these business types are legally separate entities, which need to be managed separately. This means that accounts, including all day-to-day transactions, also need to be handled separately.

Why 2026 Making Tax Digital (MTD) updates mean you may need a business account now

Even if you’re not legally required to have a partnership bank account, there’s another pressing reason why you may need one.

The UK Government has launched changes to its Making Tax Digital (MTD) for Income Tax requirements. As of 6th April 2026, it’s become mandatory for all self-employed people with qualifying income over £50,000 to keep digital records. The MTD threshold reduces to £30,000 in April 2027 and £20,000 in April 2028.²

As part of the new MTD rules, businesses must also submit quarterly MTD updates via HMRC-approved software. There are points-based penalties for late submissions, starting from the tax year 2026 to 2027. If you miss a deadline, you get a penalty point. Get 4 points and there’s a £200 penalty, with a further £200 to pay every subsequent time you miss a submission deadline.³

The new rules don’t yet apply to partnerships, but they will soon - the government is to set a deadline date in the near future.

And why does all this mean you need a business bank account? Well, in order to be compliant with the MTD rules, you may need to have a dedicated business bank account to link to your accounting software. If you’re not set up in time, you could miss submission deadlines and have to pay penalties.

How can a business bank account help your partnership?

There are a number of ways in which a partnership business bank account can make running your business easier:

• Make it easier to separate business and personal transactions

• Simplify accounting and cash flow management, which also helps when submitting tax returns to HMRC

• Make your business look more professional (especially if you deal with other businesses)

• Enable your business to accept customer card payments

• Enable your business to apply for loans and funding streams

Your bank may also require you to switch to a partnership business bank account at some point. Take a look at the small print of your personal account, as it may mention that the account is strictly limited to personal (and not business) use.

If the bank flags up that a lot of money or a large number of transactions are being made through the account, they may threaten to close it unless you open a dedicated business account instead.

Key business account benefits to consider

Business accounts usually have higher monthly or per-transaction fees than personal accounts. They also offer low to no interest rates, but don’t usually come with the perks (such as switching bonuses) you can get with some personal accounts from high street banks.

But there are still many advantages to having a dedicated business account for your partnership. For example:

• Access to specialist financial support and advice from your bank

• Free and discounted business tools and services, such as accounting software

• Access to loans and other business finance to help your business grow

• Higher thresholds for transactions and overdraft limits

• Option to add credit cards and expense cards

• Fee-free initial period – many banks offer this on business bank accounts, particularly to new or small businesses.

And, of course, your partnership business bank account should make accounting so much easier. With personal and business finances separated, you can keep on top of your cash flow and complete your tax returns with 100% accuracy.

If you plan to scale your business, the right bank account will be crucial. You’ll find your options severely limited with a personal account, not to mention how unprofessional it may appear to clients and customers.

Best bank accounts for partnerships

If you’re starting to look around for the best partnership bank account, here are a few options to consider:

Not all business account providers support partnerships, however. Two notable exceptions are Tide and Monzo, which don’t currently accept applications from partnerships.

If you’re more interested in accounts with international capabilities, it could be worth considering a specialist like Wise Business. Suitable for partnerships and easy to open, Wise Business accounts also offer multi-user access and can be seamlessly integrated with your accounting software.

And of course, it’s a multi-currency account, so you can hold 40+ currencies all in one place and make effortless, low cost international transfers at mid-market exchange rates.

This could be extremely useful if you have any dealings overseas - for example, if you’re a UK-based LLP paying overseas consultants or managing multi-currency partnership draws.

How to get a joint business account for my partnership

Applying for a partnership bank account with your fellow company directors follows much the same process as for sole traders. You’ll need to provide the following:⁷

• Details for the business – including contact details, proof of registered address and Companies House registration (for limited partnerships and limited liability partnerships)

• Partnership agreement and certificate of formation

• Projected yearly turnover and other financial details – some banks may also require evidence of a clean credit history

• Proof of identification and address for all company directors and partners owning 25% or more of the business - such as a passport or driver’s licence and a recent utility bill.

You can expect the process to take anywhere from 1-4 weeks,⁸ during which credit and other checks will be carried out. Once this is done, your new joint business bank account will be open and ready to use.

Discover the Wise Business multi-currency account

Does your partnership trade internationally? If so, you’ll need a reliable, affordable way to make and receive global payments.

If you’re planning to open a new partnership bank account, always check the fees and charges first. Some banks charge high fees to send money internationally. In addition to transaction and currency conversion fees, you may also lose out to high exchange rates too.

A cheaper, more convenient solution could be Wise Business.

Open a Wise Business account to enjoy low, transparent fees when sending international payments. Better still, you’ll always get the mid-market exchange rate.

Choose the Wise Business Advanced plan for a one-time cost of £50 (Advanced plan) or for free (Essential plan) and you’ll unlock all features, including getting local account details in 8+ currencies so you can receive payments from customers all over the world.

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

Wise Business is a great option for partnership businesses of all kinds. It comes with a Wise Business debit card paying 0.5% cashback on eligible purchases, ideal for covering partnership expenses.

Plus, it offers multi-user access with custom permission levels for different partners, and seamless integration with accounting software such as Xero and Quickbooks.

Wise is a financial technology company, not a bank, and should be used alongside a primary bank account if lending or cheques are required.

Get started with Wise Business 🚀

So, that’s it – all you need to know about partnership bank accounts. We’ve covered who legally needs to have one and the benefits on offer. Plus, alternatives for certain transactions, such as using Wise Business to save money on international payments.

As to whether it’s the right choice for your partnership business, it’s completely up to you. But in most cases, a dedicated business account makes everything from accounting to cash flow management so much easier – not to mention completing your annual tax return.

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

FAQs

What happens to the account if the partnership dissolves?

When a partnership dissolves, its joint business account is typically frozen by the bank to prevent its use. It’s then closed as part of the winding up process.

Can one partner open the account alone?

Yes, one partner can act as the nominated representative for the business, and open a partnership bank account on its behalf. They’ll need to provide authorised documentation on behalf of the company. However, the bank will usually require ID and other documents for all the partners in the business.

Sources used:

1. HSBC Business - Do I need a business bank account?
2. GOV.UK - Find out if and when you need to use Making Tax Digital for Income Tax
3. GOV.UK - Penalties for Making Tax Digital for Income Tax
4. Starling - Compare business accounts
5. Revolut - Business account plans
6. Barclays - Business current account
7. Money.co.uk - Our best partnership bank accounts 2026
8. MoneySuperMarket - What are business current accounts, and do I need one?

Sources checked on Apr 27, 2026