What contractors typically need
A limited company account that keeps company money clearly separate from personal drawings, a simple way to pay a salary and dividends alongside an accountant's advice, disciplined tax and VAT reserving between invoices, and clean record-keeping that supports IR35 compliance. For contractors moving between clients or agencies, an account that is quick to set up when a new contract starts.
How Tide addresses this
For a contractor running a personal service company, Tide's limited company onboarding covers the basics quickly, and the low transaction volume typical of a single-client contractor usually fits within the Free plan's allowance. Expense categorisation helps distinguish allowable business costs from personal ones, which matters for both Corporation Tax and IR35 record-keeping.
Features and plan that usually fit
Most single-contract contractors stay on Free given typically low transfer counts — a monthly invoice payment in, a salary and occasional expense payments out. If you run several contracts through the same company simultaneously and the transfer count rises, re-check the plan comparison.
Costs and operational considerations
- IR35 status assessment is a matter between you, your agency or client, and HMRC guidance — it is not something Tide determines or advises on.
- Instant Saver is commonly used by contractors to set aside Corporation Tax and VAT reserves between invoices.
- Accountancy support for salary/dividend structuring sits outside the account — Tide's accounting links help feed the numbers, not replace the advice.
- If your umbrella company handles pay rather than your own limited company, a personal rather than business account structure may apply instead — check which situation applies to you.
Where Tide may be unsuitable for a contractor
A contractor working through an umbrella company, rather than their own limited company, does not need this kind of business account at all — the umbrella handles payment and deductions. A contractor with several simultaneous higher-volume contracts and frequent international clients may find the transfer allowances and FX terms less competitive than a specialist provider.
Application and eligibility as a contractor
If you trade through your own limited company, the standard limited company eligibility applies: a matching Companies House record and identity verification for directors. There is no separate IR35-specific application step; that assessment happens elsewhere in your contracting arrangement.
The REFER200 offer for contractors
Standard mechanics apply: up to £75 for qualifying card spend of £100 within 30 days, and up to £125 for a £5,000 Instant Saver deposit held for 30 days. Contractors between contracts should be cautious about the savings step if the £5,000 is really a tax reserve about to be needed — see our Instant Saver requirement page before committing funds you might need to release early.
Alternatives for contractors
Starling Business and Mettle are both used widely by contractors trading through personal service companies and are worth comparing on fees for your typical transfer volume. Some contractor accountancy firms have preferred banking partners worth asking about before you choose independently.
The money-flow problems contractors actually face
The recurring problem is separating what's genuinely available to draw as salary or dividends from what needs to stay in the company for Corporation Tax, VAT (if registered) and a buffer between contracts. A second is the gap between contracts, where income stops but outgoings (accountancy fees, insurance) continue. A third, specific to IR35, is keeping clean records that support whichever status applies, even though the account itself plays no role in determining that status.
A typical week's workflow
An invoice to the agency or client is paid into the company account, a portion is moved to Instant Saver as a tax reserve, salary and dividends are drawn per the accountant's structuring advice, and expenses (equipment, professional subscriptions, accountancy fees) are categorised as they occur. Between contracts, the same account continues to hold reserves and pay ongoing costs even with no invoice income that month.
Which features matter most and why
Instant Saver matters heavily here because contractors need disciplined tax and VAT reserving more than most audiences, given lumpier income and generally higher tax exposure per invoice. Clean expense categorisation matters for both Corporation Tax and IR35-relevant record-keeping, even though it isn't an IR35 determination tool. Multi-user access rarely matters for a single-contractor personal service company.