Monzo Business Account Review UK: Fees, App, Exchange Rate and Features

Monzo Business Bank Account: Overview

Monzo offers two tiers of business banking: Monzo Business Lite (free) and Monzo Business Pro (paid). Both are current accounts for UK businesses - including sole traders and limited companies - available through the Monzo app. Monzo Bank Limited is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) under firm reference number 730427. Business deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000.

This guide compares Lite and Pro in detail, covering fees, features, limitations, and which tier suits which type of business.

Monzo Business Lite vs Pro: Full Feature Comparison

Monzo Business Lite: Who It Suits

Monzo Business Lite is best suited to:

• ▸Sole traders or newly incorporated companies who need a separate business account quickly and cheaply.
• ▸Freelancers and consultants with simple banking needs - receiving client payments by Faster Payment and making occasional business purchases.
• ▸Businesses where the owner already uses accounting software independently and does not need it integrated with the bank account.
• ▸Companies with low transaction volumes that do not need team member cards or invoicing tools.

Monzo Business Pro: Who It Suits

Monzo Business Pro at £9/month (plus VAT if applicable) adds meaningful productivity tools for growing businesses:

• ▸Tax Pots - automatically sets aside a percentage of each incoming payment into a separate pot to cover VAT and self-assessment tax. This is particularly useful for sole traders who struggle to put money aside for the tax bill.
• ▸In-app invoicing - create and send invoices directly from the Monzo app and track payment status. Useful for service businesses issuing regular invoices.
• ▸Xero and FreeAgent integration - transactions sync automatically to your accounting software, reducing manual data entry for quarterly bookkeeping.
• ▸Multiple cards - if you have team members who need a business card for expenses, additional physical or virtual cards can be issued under the Pro plan.

Monzo Business vs Other Fintech Business Accounts

FSCS Protection for Monzo Business

Business deposits at Monzo Bank Limited are covered by the FSCS up to £120,000 per business. This applies whether you are a sole trader or a limited company - the protection is per depositor, per institution. Note that if a sole trader also has a personal Monzo account, the FSCS protection is calculated across both accounts combined, not separately, because both are held under the same Monzo banking licence by the same individual. For a limited company, the company's £120,000 protection is separate from the director's personal Monzo account protection.

Opening a Monzo Business Account

1. ▸Download the Monzo app and log in or create a personal account (you must have a Monzo personal account to apply for a business account).
2. ▸Navigate to the Business tab within the app and tap "Open a business account."
3. ▸Select whether you are a sole trader or limited company.
4. ▸For limited companies, provide your Companies House registration number. Monzo will verify your company details and check all directors and PSCs.
5. ▸Complete identity verification for all directors if required. The process typically completes within one to three working days.

Case Scenario 1: Freelance Designer on Lite

Scenario: A freelance graphic designer invoices three regular clients each month, receiving payment by BACS or Faster Payment. She opens Monzo Business Lite - free, instant set-up via the app, FSCS-protected. She receives client payments into the account, pays herself a monthly transfer to her personal current account, and uses the Monzo debit card for design software subscriptions. She exports transactions as CSV each quarter for her accountant. The free tier meets all her needs without the cost of Pro.

Case Scenario 2: Growing Ltd Company Upgrading to Pro

Scenario: A two-person marketing agency started on Monzo Business Lite but quickly outgrew it - they needed to issue invoices directly from the account, have a second card for the co-director, and sync transactions with Xero for their accountant. They upgraded to Business Pro at £9/month (ex-VAT). The Tax Pot feature automatically sets aside 20% of each incoming payment into a VAT pot, eliminating the stress of quarterly VAT returns. The Xero integration saves their accountant two hours of manual reconciliation per month.

Related reading: Monzo UK Complete Guide 2026 | UK Business Bank Accounts 2026 | Free Corporate Bank Account UK

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Always verify current fees and features at monzo.com before opening a business account.

Frequently Asked Questions

Is Monzo Business FSCS protected?

Yes. Monzo Bank Limited is FCA-authorised and FSCS-eligible. Business deposits are protected up to £120,000 per business. Sole traders should note that personal and business deposits with Monzo are combined for FSCS purposes as they sit under the same individual's protection.

Can a limited company open a Monzo Business account?

Yes. Both sole traders and limited companies registered at Companies House can open a Monzo Business account. All directors and persons with significant control (PSCs) must complete identity verification as part of the application.

How much does Monzo Business Pro cost?

Monzo Business Pro costs £9 per month (plus VAT where applicable). Additional costs may apply for extra team member cards. Always verify the current pricing at monzo.com as this may have changed.

Does Monzo Business have an overdraft?

Monzo does not offer a standard arranged overdraft on its business accounts. If you need a business overdraft or credit facility, you would need to look at traditional bank business accounts (such as NatWest, Barclays, or Lloyds) that offer business overdrafts to eligible customers.

Can I deposit cash into a Monzo Business account?

Yes, via the Post Office. A fee applies per deposit (check current rates at monzo.com). Monzo does not have branches. If cash handling is a significant part of your business, a traditional bank with branch access may be more suitable.

Does Monzo Business integrate with accounting software?

Accounting integrations (Xero, FreeAgent) are available on the Pro plan only. The Lite plan does not include built-in accounting integrations, though you can export transactions as CSV for manual import into your accounting software.

Sources

• ▸monzo.com/business - Monzo Business
• ▸fca.org.uk - Monzo Bank (FCA 730427)
• ▸fscs.org.uk
• ▸companieshouse.gov.uk