Bank charges and fees

Yes

Bank charges on a business account (monthly fees, transaction charges, overdraft interest) are deductible as business expenses. Personal bank charges are not deductible even if you sometimes use the account for business.

Common questions

Can I claim the monthly fee on my business bank account?

Yes. Business account fees are a deductible business expense.

I use my personal account for business. Can I claim bank charges?

No. Charges on a personal account are a personal expense, even if business transactions go through it. You can deduct the business transactions themselves but not the account charges.

Are card payment fees claimable when a customer pays an invoice online?

Yes. Processing fees are a business cost. Example: a customer pays a £300 invoice by card and the processor takes £4.70 in fees. Record £300 of income and £4.70 of expense, not £295.30 of income.

Is the interest on a business loan claimable?

Yes. Interest on money borrowed for the business, a loan or an overdraft on the business account, is a deductible finance cost. If a loan was partly for personal spending, only the business share of the interest qualifies.

Watch out for

Interest on a business overdraft or business loan is deductible as a finance charge.
Card payment processing fees (e.g. Stripe, SumUp) are deductible.
A loan used partly for personal purposes: apportion the interest and claim only the business share.

Common mistakes

Recording the net card payout as income. Record the full invoice as income and the processing fee as an expense; netting them understates your turnover.
Claiming personal account charges because some business payments go through the account. The charges follow the account, not the transactions.
Claiming all the interest on a loan that was partly personal.

Cash basis vs traditional accounting

Charges and interest are day-to-day costs on both methods: deduct when paid on cash basis, or in the period they relate to on traditional accounting.

HMRC sources

https://www.gov.uk/expenses-if-youre-self-employed

Last verified: August 2026 · Tax year 2026/27

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This guidance is for general information only. Tax rules change. Verify with HMRC or a qualified accountant before filing.

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