How to switch or add a business account

Two routes

• A full switch moves your balance and regular payments to a new bank and closes the old account. The Current Account Switch Service handles it.
• Adding an account leaves your current account open. You move only what you want, such as card subscriptions or currency payments. This is the only route for providers that aren't banks or building societies, including e-money accounts like Incard and Wise.

Who can use the Current Account Switch Service

The service, run by Pay.UK, says businesses can use it if annual turnover doesn't exceed £6.5 million and they employ fewer than 50 people. Small trusts with net assets under £6.5 million can use it too, and HSBC adds charities with annual income under £6.5 million. More than 50 UK banks and building societies take part; look for the Current Account Switch Guarantee on the provider's site.

How a switch works

1. Open the new account. The new bank runs its own checks first.
2. Choose a switch date at least seven working days away, not on a weekend or bank holiday. You can use the old account normally until then.
3. Don't set up new payments on the old account in the seven working days before the switch; set them up on the new account instead.
4. On the switch date, your balance, Direct Debits, standing orders and saved payees move across, and the old account closes. Payments sent to the old account are redirected; HSBC says it keeps redirection in place for at least three years.

You can cancel up to seven working days before the switch date. If a payment goes wrong because of the switch, the guarantee says the new bank will fix it and refund any charges or interest. Permissions you've given to third-party apps through open banking don't move automatically, so note them before you switch.

What you'll usually need

The switching service lists the business name, trading address, funding requirements, Companies House registration number, an HMRC certificate and a recent business utility bill or statement, plus ID for you and any partners or directors. Each provider sets its own list, so check theirs. For Incard, see the documents list on our Incard profile.

Adding a second account alongside your bank

If you're adding an account for a specific job, such as cashback on card spending or cheaper currency exchange, a sensible order is:

1. Check you're eligible before applying. For Incard, see the eligibility rules on our Incard profile.
2. Open the account and wait for approval and your card.
3. Move the card payments you want on it, such as advertising and software subscriptions.
4. Update invoices only if you want customers to pay into the new account.
5. Connect the new account to your bookkeeping software so both feeds reconcile.
6. Keep reserves and tax money where your protection needs are met.