Tide business account: the facts for sole traders facing Making Tax Digital.
Tide's free business account includes software that sends your Making Tax Digital updates to HMRC. This page sets out what the Free plan costs, who holds your money, what the MTD tool covers and where its limits are, from Tide's own pages. It is not a recommendation.
Last checked 24th September 2026.
Who holds your money
Tide is not a bank. Tide Platform Limited runs the app and is authorised by the FCA as an electronic money institution. Tide's current accounts are provided by ClearBank Ltd, a bank authorised by the Prudential Regulation Authority. Eligible money in a ClearBank account is protected by the FSCS up to £120,000 per eligible person, and that limit covers all your money with ClearBank, including any through other brands that use it.
Some older Tide accounts are e-money accounts with PrePay Technologies, which are safeguarded but not covered by the FSCS. Tide's help pages explain how to tell which you have.
What the Free plan costs
| Item | Tide Free |
|---|---|
| Monthly fee | £0 |
| UK bank transfers | 5 free a month, in or out, then 20p each |
| Card payments in pounds in the UK | Free |
| Card payments abroad or in other currencies | 2.75% |
| Cash withdrawals in pounds | £1 |
| Cash deposits | Post Office £2.50 up to £500, or 0.99% above £500; PayPoint 3% |
| Instant Saver and Tax Saver | 1.5% AER on the Free plan |
From Tide's pricing and fee pages, checked 24th September 2026. Paid plans cost more and include more, such as Tide Accounting on the Pro plan.
What the free MTD tool covers
Tide says: Tide's Making Tax Digital features are built into our free business bank account. It handles the whole MTD for Income Tax process, from recording income and expenses to automating your quarterly submissions.
After the fourth quarterly update, it says, Tide helps you review your figures, make any adjustments and submit your final declaration to HMRC by 31 January
. Tide also says its MTD features are HMRC-recognised.
Its limits are worth knowing. The free tool covers Income Tax. For VAT, Tide points to Tide Accounting, which is included in the Pro plan at £27.49 a month. If your records are kept elsewhere, for example in a spreadsheet or in other accounting software, you may prefer a product built for that; our free MTD software page compares the options.
Practical effects of the Free-plan fees and features
Monthly fee. The Free plan has no monthly fee, and Tide says its free MTD tool covers quarterly updates and the final declaration for Income Tax.
VAT. Filing VAT returns needs Tide Accounting, which is included in the Pro plan at £27.49 a month.
Transfers. Five transfers a month are free, in or out, and each one after that costs 20p. Forty transfers in a month would cost £7.
Cash. Paying cash in costs £2.50 a time at a Post Office for up to £500, or 0.99% above £500, and 3% at PayPoint. Our sole trader accounts page sets these fees beside those of six other accounts.
Who can open one
Tide says you must be at least 18, have a valid UK mobile number and a device registered to a UK app store. Sole traders must also have a valid UK home address and be registered with HMRC. Some businesses cannot open an account, for example those issuing or exchanging virtual currencies. Limited companies can open Tide accounts too; this page covers the sole trader view only.
Questions people ask
Is Tide a bank?
No. Tide says: "Tide is not a bank." It also says: "Tide current and savings accounts are powered by ClearBank Ltd (FRN: 754568) - authorised by the PRA and regulated by the FCA and PRA. Eligible deposits are protected up to £120,000 per depositor by the FSCS, across all accounts with ClearBank." Some older Tide accounts are e-money accounts with PrePay Technologies instead.
Does Tide do Making Tax Digital for free?
For Income Tax, yes. Tide says its free business account handles the whole MTD for Income Tax process, including the quarterly updates and the final declaration. For VAT, Tide points to Tide Accounting, which is included in the Pro plan at £27.49 a month.
How much does a Tide Free account cost?
There is no monthly fee. On the Free plan, Tide charges 20p for each bank transfer in or out after the first 5 each month, £1 for a cash withdrawal in pounds, and £2.50 for a Post Office cash deposit of up to £500 (0.99% above that).
Who can open a Tide account?
Tide says sole traders must be at least 18, have a valid UK mobile number, a valid UK home address and be registered with HMRC. Some business types cannot open an account.
Find my MTD route Compare sole trader accounts
Sources
- Tide, pricing, Making Tax Digital, how much Tide costs and who can open an account, checked 24th September 2026.
- FSCS, Check your money is protected, checked 24th September 2026.