How do I switch business bank accounts in the UK without missing payments?

The safest approach is to open the new account first, make a complete payment checklist, then use the Current Account Switch Service (CASS) if both banks support it and your business is eligible.

Before you start

1. Check eligibility and timing. CASS is available for eligible small-business current accounts; Business.gov.uk says eligibility includes turnover under £6.5 million, fewer than 50 employees, and both banks participating. The switch takes about 7 working days. Pick a date away from payroll, tax bills, rent, or other large payments. (business.gov.uk)
2. List every payment from recent bank statements:
   • Direct Debits and standing orders
   • Payroll, supplier and tax payments
   • Customer receipts and regular transfers
   • Recurring card payments, such as software, advertising, hosting and subscriptions
3. Check anything CASS won’t move automatically. Recurring card payments and third-party app permissions—such as accounting software bank feeds—need updating separately. Also check payment processors such as Stripe or PayPal, payroll software, overdrafts, loans and any accounts linked to the old bank. (santander.co.uk)
4. Download statements and records and check your new account is ready to receive money and make payments.

When you switch

Ask your new bank to start a full CASS switch, confirm the switch date, and follow its instructions. Keep using the old account normally until that date, and make sure enough money will be available in the new account to cover payments after the switch. A full CASS switch transfers the balance and eligible payments, then closes the old account. (santander.co.uk)

After the switch

• Update your bank details on invoices, your website, customer forms and supplier records.
• Change card details for subscriptions and update payment processors, payroll and accounting-software connections.
• Check the first round of payroll, Direct Debits, standing orders and customer receipts against your list.
• Watch the old account’s payment redirection as a safety net, not as a substitute for updating your details. CASS says redirection lasts for at least three years. (wearepay.uk)

If you need to keep the old account open, ask the new bank about a partial switch instead; the standard full CASS switch closes it, and a partial switch may not have the same guarantee. (rbs.co.uk)

The safest route is usually the Current Account Switch Service (CASS), which moves your payments for you. Manual switching is the fallback.

1. Check you qualify for CASS

• Your business generally needs an annual turnover under £6.5 million and fewer than 50 employees. Your business must: have an annual turnover below £6.5 million, employ fewer than 50 people.
• It only covers sterling current accounts, and you'll also need to check that your existing bank is signed up to the service.
• Sole traders may need to act differently. Santander, for example, says that if you're a sole trader and applying for an account digitally, you'll need to call them once your account's open to start the switch.

2. Choose a full switch, not a partial one
A full switch is the one covered by the guarantee. A partial switch is not backed by the Current Account Switch Guarantee. A partial switch also means you must handle some things yourself, such as incoming payments like customer receipts. You'll need to arrange for any incoming payments such as your salary to be transferred to your new account.

3. Open the new account and pick a switch date
Open the new account first, then start the switch and choose a date that avoids payroll runs, VAT or tax deadlines, and big supplier payments. Once the switch starts, it takes just seven business days to complete.

4. Understand what CASS covers, and what it doesn't

• CASS moves your outgoing Direct Debits and standing orders, and your incoming payments, to the new account. It also moves your balance.
• Payments sent to your old sort code and account number are redirected to the new account. This lasts for at least three years.
• Not everything is covered. Card payments and subscriptions tied to your old account need updating yourself. You'll need to update any recurring card payments or subscriptions on your old account as this will not be done as part of the switching process.
• Overseas payments are a gap. CASS redirection works only for UK domestic payments. If you receive SWIFT or SEPA payments, give overseas clients your new IBAN and account details yourself.

5. Cover the gaps manually before the switch

• HMRC: Update the bank details for your tax Direct Debits through your HMRC Business Tax Account. Make the change with plenty of notice before the next payment falls due. One source suggests giving at least 14 days' notice. If you're on Making Tax Digital for VAT, you can only change your VAT Direct Debit online.
• Clients and suppliers: Even though payments are redirected, tell key customers and suppliers your new details. Redirection is a safety net, not a substitute for updating records.
• Subscriptions and card payments: List every recurring card payment and update each merchant.
• Keep the old account open briefly: This is my own suggestion rather than something the sources say. Keeping it open until you've seen a full billing cycle pass on the new account helps you catch anything missed.

6. Monitor after the switch
Check the new account for failed payments and unexpected redirected receipts over the next few weeks. If a Direct Debit fails, contact that provider right away.

If you tell me your turnover, headcount, and whether you're a limited company or sole trader, I can help you narrow down which steps apply. For anything complex, such as a large payroll or overseas payments, speak to your accountant or bank before switching.

In the UK, the most secure and efficient way to switch business bank accounts without missing payments is by using the Current Account Switch Service (CASS).

This service is free, backed by the industry, and specifically designed to prevent payment disruptions for eligible small businesses.

1. Check Eligibility for CASS

The Current Account Switch Service is available to small businesses, charities, and trusts that meet these criteria:

• Annual turnover: Under £6.5 million.
• Employees: Fewer than 50.
• Account Type: You must be switching a business current account.
• Participating Banks: Both your old and new banks must be participants in the scheme. (Most major UK banks are; you can check your new bank's website or the CASS website to confirm).

2. How the Switch Works (The "Hands-Off" Process)

Once you open your new account and request the switch through your new bank, they handle almost everything for you:

• Automatic Transfer: Your Direct Debits, standing orders, and salary payments are automatically moved to your new account.
• Redirection: If any payments are accidentally sent to your old account, the service automatically redirects them to your new account for 36 months.
• Timeline: The process is guaranteed to complete in seven working days.
• The Guarantee: The Current Account Switch Guarantee ensures that if anything goes wrong with the switch, your bank will refund any interest or charges incurred.

3. Essential Preparation to Avoid Gaps

Even with CASS, being proactive will prevent "administrative" hiccups:

• Avoid new arrangements: Do not set up new Direct Debits or standing orders with your old bank during the 7-day switching window, as these may not transfer automatically. If you must set one up, do it directly on your new account.
• Audit your transactions: Download the last 12 months of statements from your old account. Look for annual or infrequent payments (like insurance or software licenses) that might be missed if you only check the last three months.
• Update your details: While CASS handles the redirection, it is best practice to manually update your bank details with:
  • Key clients and customers (so they pay into the correct account).
  • HMRC (update your details in your Business Tax Account).
  • Payment processors or marketplaces (e.g., Stripe, PayPal, Amazon), as these often need to be updated manually in their respective dashboards.

What if you aren't eligible for CASS?

If your business is too large for CASS, or if your bank does not participate, you will need to perform a manual switch:

1. Open the new account first and keep both accounts open simultaneously for a few weeks.
2. Systematically move payments: Manually cancel standing orders/Direct Debits on the old account and recreate them on the new one.
3. Cross-reference: Keep a spreadsheet of all incoming and outgoing payments to ensure nothing is left behind before closing the old account.

The safest route is usually the Current Account Switch Service (CASS), if both banks participate and your business qualifies. It’s free, typically takes 7 working days, and moves regular payments and the balance, closes the old account, and redirects payments sent there after the switch. ¹²

Before you start

1. Check eligibility with both banks. CASS eligibility and bank-specific rules can vary. The government guidance says businesses generally need turnover under £6.5 million and fewer than 50 employees, with both banks participating. ¹
2. Open the new account first. Confirm it supports the features you rely on—such as payroll, accounting integrations, cash deposits, cards and payment services.
3. Sort out any overdraft before switching. An overdraft won’t necessarily transfer, and an overdrawn balance may need to be repaid or separately agreed with the new bank. ³
4. Choose a quiet switch date. Allow at least seven working days, and avoid a weekend or bank holiday. Keep enough funds available for payments due around the changeover. ²

During the switch

• Ask the new bank to start the full CASS switch and agree the date.
• Keep using the old account until the switch date, but don’t create new payment arrangements there in the seven working days before the switch; those may not transfer. Set any new ones up on the new account instead. ²
• CASS transfers regular payments such as Direct Debits and standing orders, along with regular incoming payments. Payments sent to the old account are redirected, and the payer is notified of the new details. ²

After the switch

• Check the new account’s first statements against your payment schedule. Contact key customers, suppliers, HMRC and payroll providers with the new details as a precaution, and verify that their records have updated.
• Reconnect any Open Banking or third-party payment permissions yourself; these may not transfer automatically. ³
• Keep an eye on the old account’s payment redirection and resolve any rejected or unexpected payments promptly.

If CASS isn’t available for your business or account, ask both banks for their manual-switch process. In that case, keep the old account open and funded until you’ve confirmed that incoming payments and every Direct Debit, standing order, card settlement and payroll instruction are working from the new one.

Sources
¹ GOV.UK: Getting a business bank account
² Current Account Switch Service: Business switching process and FAQs
³ HSBC UK: Business current account switching information