Yes, a limited company can have multiple bank accounts, and many do
There is no legal limit on the number of bank accounts a limited company can hold. You can open as many as you need with different banks, or multiple accounts with the same bank. The decision is yours to make based on how you want to manage your money.
What matters to your bank and to Companies House (the UK register where your company is recorded) is not how many accounts you have, but that you keep proper records of all of them and that money moving between them is clearly documented in your accounts. Each account should have a clear business purpose, and your accountant or bookkeeper needs to know about all of them when they prepare your year-end accounts.
Key Takeaways
- A limited company can open as many bank accounts as it needs with any UK bank that will accept it, with no legal maximum.
- All accounts must be in the company's name, not in a director's personal name, even if a director is the only person who uses it.
- Every account must appear in your company records and accounting software, and your accountant must know about all of them.
- Banks may ask why you need multiple accounts, and some may refuse if they think the reason is to hide money or split transactions to avoid reporting rules.
- If you close an account, you must still keep records of transactions from that account for at least six years.
Why companies open more than one account
The most common reason is to separate different types of money. A company might have one account for day-to-day operating costs, another for tax money being set aside, and a third for a specific project or client. This makes it easier to see at a glance how much money is available for what purpose, and it reduces the risk of accidentally spending money that needs to go to the tax office.
Some companies open a second account with a different bank because they want a backup if their main bank has a technical problem or if they need to move their banking relationship. Others do it because different banks offer different services — one bank might be better for international payments, another for handling lots of small cash deposits, another for a business savings account that earns interest.
A company might also open accounts in different names if it operates under more than one trading name, though this is less common and requires each account to be clearly linked back to the same registered company.
What banks will ask before opening a second account
When you explore for a second account, the bank will ask why you need it. Be straightforward: "to separate operating costs from tax reserves" or "to manage payments for a specific client contract" are both legitimate reasons that banks hear regularly and accept.
Banks are required by law to check money-laundering rules, and one thing they watch for is someone opening multiple accounts to split transactions in a way that looks designed to hide the true size of a payment or to avoid reporting thresholds. If your reason for the second account is genuine business management, you will have no problem explaining it. If you are vague or evasive, the bank may refuse.
You will need to provide the same documents you gave when you opened your first account: your certificate of incorporation, proof of the company's address, and identification for anyone who will have signing authority on the account. If directors or shareholders have changed since your first account opened, bring updated documents.
How to keep records when you have multiple accounts
Your accounting software (whether that is Xero, FreeAgent, QuickBooks, or something simpler) must have a record of every account. Each account should be set up as a separate "bank account" within the software, with its own name and sort code. When money moves between your accounts — for example, transferring £5,000 from your operating account to your tax account — that movement must be recorded as a transfer, not as two separate transactions.
Your bank statements for each account should be reconciled monthly. This means checking that every transaction on the statement matches a record in your accounting software, and that the balance shown on the statement matches the balance in your software. If you have three accounts, you reconcile all three.
When your accountant prepares your year-end accounts, they will need statements from every account you held during that year, even if you closed one partway through. The accounts filed at Companies House will show the balance of each account as of the year-end date.
What happens if you close an account
You can close any account at any time. Before you do, make sure all outstanding cheques have cleared and that you have transferred any remaining money to another account. Give the bank notice — usually 30 days — so they can process the closure properly.
Once closed, you must keep statements and records from that account for at least six years from the date of closure. This is a legal requirement for all business records. You do not need to keep the account open, but you do need to keep the paper or digital copies of the statements.
When a bank might refuse a second account
A bank can refuse to open an account for any reason, though they must tell you why. Common reasons for refusal on a second account include: the bank thinks you are trying to hide transactions, you have had fraud or money-laundering concerns flagged on your first account with them, or you have a poor payment history with that bank.
If one bank refuses, you can explore to another. Different banks have different risk appetites and different criteria. A bank that refuses might be being cautious, or it might have seen something in your account history that genuinely concerns them — either way, you have other options.
Multiple accounts and tax reporting
Having multiple accounts does not change what you owe in tax or how you report it. Your company still files one set of accounts per year, covering all the money that came in and went out across all accounts. The tax office does not care how many accounts you have; they care about the total profit your company made.
If you have accounts with different banks, each bank will report interest earned on those accounts separately to the tax office. Your accountant will add all of that interest together when calculating your company's tax bill. This is automatic and nothing you need to do yourself.
Frequently Asked Questions
Can I open a second account in a different director's name?
No. All accounts must be in the company's registered name. You cannot open an account in a director's personal name and use it for company money — that is mixing personal and business finances, which creates legal and tax problems. If you want different directors to have access to different accounts, that is fine, but the account itself must be registered to the company.
Do I need to tell Companies House about each account?
No. Companies House does not need to know how many accounts you have. You only need to tell your accountant and your bank. Your year-end accounts will show the bank balances, but not the number of accounts.
What if I want to keep one account secret from my accountant?
You cannot do this legally. Your accountant is responsible for preparing accurate accounts, and they cannot do that if they do not know about all the money the company holds. Hiding an account from your accountant is a serious breach of company law and can result in penalties or prosecution. Tell your accountant about every account.
Can I have a personal account and a business account with the same name?
Yes, but keep them completely separate. Use your personal account only for personal money and your business account only for company money. Never mix the two. Your bank will treat them as separate accounts, and your accountant will only include the business account in your company records.
If I close my company, what happens to the accounts?
Before you close a company, you must settle all outstanding payments and transfer any remaining money out of the accounts. Once the company is dissolved at Companies House, the accounts will be closed automatically — banks will not allow transactions on accounts belonging to a dissolved company. Keep the statements for six years after closure.