What counts as a sole trader for payment processing purposes?

Most UK card reader and payment app providers don't distinguish sole traders from other business types during signup — you'll typically register with your name, business type (sole trader) and a UK bank account. No dedicated company registration or company number is required to start taking card payments as a sole trader.

Do I need a business bank account before I can accept card payments?

No — most sole-trader-friendly card readers, including SumUp, Zettle and Lopay, can pay out directly to a personal bank account. A dedicated business account like Anna Money or Tide becomes more useful once you want separate records for tax, built-in invoicing, or multi-currency support.

What's the cheapest way for a sole trader to take card payments?

For low or irregular volumes, a pay-as-you-go card reader with no monthly fee is almost always cheapest. See our dedicated Best Card Machine for Sole Traders comparison for real transaction fees and a worked example at £3,000/month.

Home / Sole Traders

For sole traders & freelancers

Take your first card payment without a contract or hidden fees

As a sole trader, you need low, predictable costs and nothing you have to sign a lengthy contract for. We've compared the readers, apps and accounts that suit solo operators best.

Vendor lineup and WMP scores checked 31 July 2026.

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Sole trader accepting a mobile payment using a smartphone

Not sure this is the right page? If you have staff, multiple locations or want integrated accounting software, see Small Business. If you need negotiated interchange-plus rates or PCI DSS enterprise compliance, see Enterprise.

Best for taking payments: Lopay

0.79-0.99% with no fixed fee and no contract is the cheapest option here, it's also the highest-scoring card reader on this page, and there's no hardware to buy — payments go straight through your phone screen.

Best business banking: Anna Money

Free on Pay As You Go with built-in invoicing and expense tracking aimed specifically at new sole traders — ties with Tide on WMP score, but its feature set is the closer match to a first business account.

Recommended for you

Popular choices among UK sole traders

Chosen for pay-as-you-go pricing, no monthly minimums, and setup you can do from your phone.

How much do you take in card payments each month?

Estimates assume an average sale of £35. Banking providers show their flat monthly fee, not a volume-based estimate.

SumUp

Card Reader

No contractPay-as-you-go

★★★★☆4.1/5

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A widely used pocket-sized reader with one flat rate per transaction — popular with market traders, tradespeople and events.

Get SumUp deals

Zettle by PayPal

Card Reader

No contractPayPal integration

★★★★☆4.2/5

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Backed by PayPal, with easy linking to a PayPal business account for fast access to your funds.

Get Zettle deals

Lopay

Card Reader

No contractApp-based

★★★★☆4.3/5

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Take payments straight from your phone's screen with no extra hardware needed — handy for a first-ever sale.

Get Lopay deals

Revolut Pro

Business Banking

Best for solo freelancers

★★★★☆3.6/5

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A business account built for freelancers and solo operators, with multi-currency support and easy invoicing.

Get Revolut Pro deals

Anna Money

Business Banking

Fast setup

★★★★☆4.1/5

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A mobile-first business account with built-in invoicing and expense tracking, popular with new sole traders.

Get Anna Money deals

Tide

Business Banking

Fast setup

★★★★☆4.1/5

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Quick-to-open business banking with expense cards and invoicing tools built for the self-employed.

Get Tide deals

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No hidden costs

Pay-as-you-go pricing means you're never charged for a month you didn't take a card payment.

Set up from your phone

Most sole-trader solutions can be ordered, activated and taking payments the same day.

No credit checks

Most card readers and mobile accounts for sole traders don't require a business credit history to get started.

Frequently asked questions

What counts as a sole trader for payment processing?

Most providers don't distinguish sole traders during signup — just your name, business type and a UK bank account. No company registration is required.

Do I need a business bank account first?

No — SumUp, Zettle and Lopay can all pay out to a personal account. A dedicated account like Anna Money or Tide helps once you want separate records or built-in invoicing.

What's the cheapest option for a sole trader?

A pay-as-you-go reader with no monthly fee, for low or irregular volumes. See the fee comparison below for real numbers.

Want the fee comparison instead?

SumUp vs Zettle vs Lopay vs Square vs myPOS for sole traders — real transaction fees, hardware cost and a worked example at £3,000/month.

Best card machine for sole traders

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