Switch Business Bank Account: CASS Guide and Best Options

Key facts: switching business bank accounts

• CASS completes in 7 working days - free, the new bank manages the entire process
• Direct debits and standing orders transfer automatically with a 36-month redirect for the old account details
• Accounting software bank feeds, card subscriptions, and historical transaction data do NOT transfer - require manual action
• CASS does not transfer lending arrangements - a business with a CMA9 overdraft loses that facility when switching to a digital-only account
• NatWest and Santander offer the longest CMA9 free periods at 18 months each

How to switch a business bank account

Switching a business bank account using the Current Account Switch Service (CASS) is a free, guaranteed process that transfers all incoming and outgoing payments, direct debits, and standing orders within seven working days. The service is operated by Pay.UK and backed by the Current Account Switch Guarantee - any payment misdirected during the switch is refunded by the new bank.

The switch is initiated at the new bank, not the old one. Once the new account is open and approved, the new bank manages the entire switch process. The account holder does not need to contact individual direct debit originators - the redirect is automatic and lasts 36 months, covering any payments that arrive at the old sort code and account number after the switch date.

CASS is available to UK businesses with annual turnover up to £6.5 million. Larger businesses, or those with multiple accounts or complex payment structures, may need to switch manually by notifying each payer and payee of the new account details individually.

Step-by-step guide to switching

1. Open the new account: Apply to the new provider and wait for approval. The switch begins after the new account is active.
2. Request the switch at the new bank: Log in to the new bank app or website and select the account switching option. Provide the old account sort code and account number.
3. Select the switch date: Choose a date at least seven working days in the future. Avoid scheduling immediately before or after month-end direct debit collections.
4. Confirm the direct debit list: Review the direct debits and standing orders that will transfer. These are pulled automatically from the old account via CASS.
5. CASS redirects payments automatically: The system redirects payments arriving at the old sort code for 36 months after the switch date.
6. Old account closes on switch date: The old account closes automatically. Ensure the new account has sufficient balance to cover any direct debits due immediately after the switch.
7. Reconnect accounting software: Bank feeds must be manually reconnected to the new account. CASS does not transfer open banking connections.

What transfers automatically and what does not

CASS automatically transfers: all Direct Debit mandates, all standing orders, incoming Faster Payments and BACS credits to the old sort code and account number, and a 36-month redirect for payments arriving at the old details after switch date.

The following require manual action after switching: accounting software bank feeds (must be reconnected in software settings), debit card details for card-billed subscriptions and supplier accounts, and export of historical transaction data (does not transfer via CASS - download statements before switch date).

Best accounts to switch to

Source: CMA Open Data API and provider published rates, 09 Jun 2026. Free periods apply to new account holders. Verify eligibility directly with providers.

Free period eligibility when switching

Most CMA9 banks treat a switch as a new customer relationship and apply the introductory free period. Businesses that previously held an account at the same bank within 12 to 24 months may not qualify. NatWest and Santander offer 18-month free periods - the longest among CMA9 banks. Switching to NatWest also qualifies for FreeAgent accounting software inclusion at no additional cost for qualifying customers.

Santander has offered switching incentives of up to £625 for eligible business customers. Eligibility typically requires minimum monthly deposits and transaction volumes. Verify current incentive availability directly with Santander before switching.

Cost saving calculation from switching

For a business currently paying £8.50 per month (Barclays standard rate), switching to a permanently free account such as Starling or Nationwide saves £102 per year in monthly fees. For a business also paying 35p per electronic payment on 100 transactions per month, the transaction charge saving is an additional £420 per year - bringing the total annual saving to £522. This calculation excludes the value of branch access and lending facilities that paid CMA9 accounts provide. For businesses that do not use those services, the cost saving from switching to a free account is straightforward.

Impact on credit score and overdraft when switching

Switching a business bank account does not affect personal or business credit scores. CASS does not trigger a credit check. Opening the new account may involve a soft credit check at CMA9 banks, which does not affect scores. Closing the old account has no negative impact on credit history.

An important consideration: CASS does not transfer lending arrangements. A business switching from a CMA9 bank with an overdraft facility to Starling gives up the overdraft as part of the switch. If overdraft access is critical to operations, confirm the new bank will provide an equivalent facility before initiating the switch.

Switching business bank account: employer PAYE considerations

Businesses that employ staff and run payroll need to ensure payroll bank details are updated before the first payroll run after the switch date. CASS automatically redirects BACS credit payments, which covers most salary payments sent via BACS. However, the payroll software and any BACS submission files should be updated with the new sort code and account number to ensure correct details flow through to HMRC Real Time Information submissions and employee payslips.

HMRC PAYE and employer NIC payments are typically set up as direct debits or BACS payments from the business account. Direct debit mandates transfer automatically via CASS. If PAYE is paid by bank transfer rather than direct debit, update the payment details in the payroll software and HMRC's online services after the switch completes. HMRC requires correct bank details to be filed in RTI submissions - using old account details after the switch may cause RTI reconciliation issues.

What to do before switching: preparation checklist

Before initiating a CASS switch, complete the following preparation. Export and save full transaction history and bank statements from the existing account going back at least 3 years for corporation tax and VAT purposes - HMRC can request bank records going back up to 6 years in a tax enquiry, and historical data does not transfer via CASS. Download or screenshot the current list of direct debit mandates so you can verify they have all transferred after the switch completes.

Review whether any card payments - subscriptions, software licences, supplier accounts billed by card rather than direct debit - will need to be updated manually with the new debit card details. Common examples include cloud software subscriptions (Google Workspace, Microsoft 365, Xero, QuickBooks), insurance premiums paid by card, and fuel card accounts. CASS does not redirect card payment relationships, only bank account payments.

If the business has an overdraft facility with the existing bank, confirm whether the facility transfers or terminates on switch. CASS does not transfer lending arrangements. A business switching from Barclays to Starling gives up any Barclays overdraft as part of the switch. Ensure the new bank will provide an equivalent facility before initiating the switch if overdraft access is critical.

Frequently asked questions

VAT direct debits and CASS: what to check

For VAT-registered businesses paying VAT by direct debit, the VAT direct debit mandate transfers automatically via CASS along with all other direct debits. HMRC is notified of the new sort code and account number through the standard CASS notification process. However, businesses should verify in their HMRC online account (Business Tax Account at gov.uk) that the new bank details have been correctly recorded before the next VAT payment falls due.

VAT quarters that straddle the switch date - where the VAT period started before the switch and the payment falls after - should process without issue as the CASS redirect covers incoming and outgoing payments at the old sort code for 36 months. If any doubt exists, the VAT direct debit can be cancelled and resubmitted via HMRC online services using the new account details.

Businesses on the VAT Annual Accounting Scheme or Cash Accounting Scheme should pay particular attention to outstanding payment instalments scheduled around the switch date. The direct debit for annual accounting instalments transfers via CASS, but verifying the payment schedule in HMRC online services after the switch is good practice to confirm the new details have been applied correctly.

How do I switch my business bank account?

Open an account at the new bank first. Once approved, use the Current Account Switch Service option in the new bank app, provide the old account sort code and account number, select a switch date at least seven working days ahead, and confirm. The new bank manages the rest. All direct debits and standing orders transfer automatically within seven working days.

How long does switching a business bank account take?

Under the Current Account Switch Guarantee, the switch completes within seven working days of the switch date. Opening the new account takes additional time: minutes for digital providers, 3 to 7 days for CMA9 banks. Total time from decision to fully operational new account is typically 2 to 3 weeks.

Is switching a business bank account free?

Yes. The Current Account Switch Service is free. There are no fees to the business for initiating or completing a CASS switch. The new bank manages the process at no charge. Closing the old account is also free.

Will switching my business account affect my credit score?

No. CASS does not trigger a credit check. Opening the new account may involve a soft credit check at CMA9 banks, which does not affect scores and is not visible to other lenders. Closing the old account has no negative impact.

What happens to my direct debits when I switch?

All direct debit mandates transfer automatically as part of the CASS process. The CASS system notifies direct debit originators of the new sort code and account number. No manual action is required for direct debits. The Current Account Switch Guarantee ensures that if any direct debit fails to redirect correctly, the new bank is responsible for reimbursing any charges or interest that result from the failure. Card payments operate differently: debit card numbers change when a new card is issued, and subscriptions or suppliers billed by card rather than direct debit must be updated manually with the new card details once the replacement card arrives. Accounting software bank feeds must also be manually reconnected in software settings as open banking authorisations are account-specific and do not transfer via CASS.