New to the UK? A Financial Guide for Immigrants and Newcomers

Moving to the UK means navigating a new financial system. This guide helps newcomers understand how money works in Britain.

First Financial Steps

Priority Checklist

Priority	Action	Timeline
1	Open bank account	First week
2	Get National Insurance number	First month
3	Register with NHS GP	First month
4	Register for council tax	If renting
5	Understand tax situation	First paycheck

Opening a Bank Account

What You Need

Document	Typical Requirements
ID	Passport or BRP
Proof of address	Utility bill, tenancy agreement
Visa	BRP or visa vignette
May also need	Employment letter

Easiest Options for New Arrivals

Bank	Why Good for Newcomers
Monzo	No proof of address needed
Starling	Passport verification
Revolut	Easy online setup
HSBC	Newcomer accounts available
Barclays	International accounts

Traditional Banks

Bank	Account Type
HSBC	Passport account (basic)
NatWest	Select account
Barclays	Basic current account
Lloyds	Basic account

Basic Bank Account

Feature	Details
No credit check	Easier approval
Debit card	Yes
Overdraft	No
Direct debits	Yes
Standing orders	Yes

National Insurance Number

What It Is

Purpose	Details
Tax tracking	Links your contributions
Benefits	Required for claims
State Pension	Builds entitlement
Employment	Employer needs it

How to Get One

Step	Action
1	Apply online at gov.uk
2	Book appointment if needed
3	Prove identity and right to work
4	Receive number by post (6-8 weeks)

Can Work Without NI Number

Important	Details
Start work immediately	Don’t wait for NI
Employer uses temporary number	Until yours arrives
Tax calculated normally	NI just for records

Building Credit History

Why You Start with No Credit

Factor	Reality
No UK history	Credit invisible
Previous country	Doesn’t transfer
Takes time	6 months to start

Building Credit Steps

Step	Action	Impact
1	Register on electoral roll (if eligible)	High
2	Get on utility bills	Medium
3	Mobile phone contract	Medium
4	Credit builder card	High
5	Pay everything on time	Essential

Electoral Roll

Eligibility	Can Register?
British/Irish citizens	Yes
Commonwealth citizens	Yes
EU citizens (pre-Brexit)	Usually yes
Other visa holders	No (but still exists)

Credit Builder Cards

Card	Best For
Aqua	Building credit
Capital One	New to credit
Vanquis	No credit history

Credit Building Strategy

Action	How
Small spending	£20-50/month
Full repayment	Every month
Keep utilisation low	Under 30%
Time	12-24 months

Understanding UK Tax

Employment Tax (PAYE)

What Happens	Details
Tax at source	Employer deducts
Tax code	Determines deductions
Pay slip	Shows deductions
Annual allowance	First £12,570 tax-free

Tax Bands 2025/26

Band	Income	Rate
Personal Allowance	£0-12,570	0%
Basic Rate	£12,571-50,270	20%
Higher Rate	£50,271-125,140	40%
Additional	Over £125,140	45%

National Insurance

Type	Rate
Employee	8% on earnings £12,570-50,270
Employee	2% above £50,270
Employer	13.8% (not from your pay)

Tax Codes

Code	Meaning
1257L	Standard (most common)
BR	All taxed at basic rate
0T	No allowance
W1/M1	Emergency (temporary)

Foreign Income

Situation	Action
UK resident	May need to declare foreign income
Tax treaty	Check if exists with your country
Remittance basis	Complex, may apply
Get advice	If significant foreign assets

NHS Healthcare

Registration

Step	Action
1	Find local GP surgery
2	Ask to register
3	Provide ID and address
4	May need immigration status

What’s Free

Service	Cost
GP appointments	Free
Hospital treatment	Free for residents
Emergency care	Free for everyone
Prescriptions	£9.90 per item (England)

What May Cost

Service	Details
Dental	Partial charges
Eye tests	Usually pay unless eligible
Prescriptions	Unless exempt
Some specialist	Immigration health surcharge covers most

Immigration Health Surcharge

Visa Type	Annual Charge
Most visas	£1,035/year
Student visa	£776/year
Work visa	£1,035/year

Benefits and Support

Access by Immigration Status

Status	Benefit Access
British citizen	Full access
ILR/Settled	Full access
Pre-settled	Limited access
Work visa	Very limited
Student visa	Minimal

Universal Credit

Who Can Claim	Requirements
Settled status	Yes (habitual residence test)
Pre-settled	Usually no
Work visa	No
ILR	Yes

Child Benefit

Status	Entitlement
Settled/ILR	Yes
Pre-settled	Subject to right to reside
Work visa	Usually no

Always Available

Service	Access
NHS (with surcharge paid)	Full
Emergency services	Full
Education for children	Full
Free school meals	Usually

Housing

Renting

Requirement	Details
Right to rent check	Landlord must verify
Deposit	5 weeks rent maximum
References	Previous landlord, employer
Credit check	May lack history

Without Credit History

Strategy	How
Guarantor	UK-based person
Larger deposit	If landlord agrees
Corporate relocation	Employer assists
Rent guarantee service	Third-party provider

Council Tax

Band	Based On
A-H	Property value
Student exemption	Full-time students exempt
Single occupant	25% discount

Sending Money Home

Options

Service	Fees	Speed
Wise	Low	Fast
Remitly	Low-medium	Fast
Western Union	Higher	Very fast
Bank transfer	Often highest	Varies

Best Practices

Tip	Benefit
Compare exchange rates	Better value
Avoid airport bureaux	Poor rates
Regular transfers	Set schedule
Understand fees	Both ends

Practical Money Tips

Currency and Payments

Tip	Details
Contactless payments	Widely accepted
Cash less common	But keep some
Electronic payments	Very common
Mobile banking	Download apps

Understanding Costs

Area	Cost Level
London	Very high
South East	High
Major cities	Medium-high
North/Midlands	Lower
Scotland/Wales/NI	Generally lower

Budgeting Reality

Common Expense	UK Average
Rent (1-bed, non-London)	£600-900/month
Rent (1-bed, London)	£1,200-2,000/month
Council Tax	£100-200/month
Utilities	£100-200/month
Mobile phone	£15-40/month
Groceries	£150-250/month
Transport	£50-200/month

Key Cultural Notes

Money Culture

Aspect	UK Practice
Bargaining	Not common (except cars, markets)
Tips	10-12.5% at restaurants (optional)
Bills	Split equally common
Talking about salary	Less common than some cultures

Employment Practices

Aspect	Details
Paid monthly	Most jobs
Tax deducted	Automatically
Pension enrolled	Automatically (can opt out)
Holiday	Minimum 28 days inc bank holidays

Getting Help

Free Advice

Organisation	Help With
Citizens Advice	Everything
Migrant Help	Immigration + settling
Settled	EU Settlement Scheme
Turn2us	Benefits check

Legal Immigration Advice

Resource	Type
OISC registered	Only use regulated advisers
Law centres	Free/low cost
Solicitors	Paid advice

Summary

First Steps	Timeline
Bank account	Week 1
National Insurance	Month 1
Register NHS	Month 1
Start credit building	Month 1-2
Understand tax	First pay

Key Numbers	Amount
Personal Allowance	£12,570
Basic tax rate	20%
Employee NI	8%/2%
Health surcharge	£1,035/year