How will I manage my finances in the UK?
By Gemma Raw
You’re about to move to the UK after landing your ideal health or social care role. So, where do you even start with organising your finances?
How do you set up a bank account? Why is your National Insurance number so important? How can you make your money go further? And what’s the best way to send money home?
We explore the answers to all these questions in this helpful blog, so please take a read.
How do you set up a UK bank account online?
Setting up a UK bank account online is easy to do and something that the Sanctuary International team can help you with. You will need to open what’s called a current account. This is the standard and most common type of bank account that is used for everyday needs such as paying bills, shopping and receiving wages from your employer. These are available for free or low cost monthly charges and come with a debit card and agreed overdraft facilities.
Once you are in the UK, you can open a bank account at a branch or online. The most recognisable high street banks include Lloyds, HSBC, NatWest and Barclays.
Normally, to apply, you’ll need to supply proof of a UK address unless you already bank with an international provider that has UK coverage.
Each bank will have its own list of required documents, but most will ask for:
- Your passport/valid photo ID
- A recent utility bill or council tax bill
- A bank or credit card statement
- Possibly proof of employment
Some banks, however, including HSBC and Barclays, offer international bank accounts which can be opened overbroad before moving to the UK.
Another option to consider is online-only bank accounts that can give you even more control when it comes to managing your money such as a Monzo or Starling account, which can be set up using your phone. Managed through apps, both give you instant payment notifications, visual saving spaces and more flexibility in managing your money. You can even freeze and unfreeze your card on the app if it gets lost or stolen.
What will I need to do in my first week?
In your first week, you will need to obtain your National Insurance (NI) number, which is given to you when you collect your biometric residence permit (BRP).
If you’re not familiar with the BRP, it is a legal document that holds your biographic details (name, date and place of birth) and biometric information (facial image and fingerprints). It shows your immigration status and what health and public service services you can access. Essentially, a BRP is proof of your right to stay, work or study in the UK and can be used as a form of identification for setting up things like a bank account.
You must collect your BRP either from a named Post Office branch of your chosen sponsor within 10 days of arriving in the UK.
On the back of your BRP, you will usually find a copy of your National Insurance (NI) number that you’ll need to pass to your employer so that they can collect the right amount of National Insurance Contributions from your wages each month.
What are National Insurance contributions?
National insurance contributions (NICs) are used to fund pensions, Jobseekers’ allowance, maternity/paternity benefits, bereavement support and the NHS.
You will be expected to pay NICs every month, unless either of the following apply to you:
- You have a Portable Document A1, E101 or E102 that proves you pay National Insurance in another European Economic Area (EEA) country.
- You have a certificate from a country with a bilateral social security agreement with the UK.
If you’re unsure, please ask us as we’ll be able to help.
How are most things paid for in the UK?
In England, the currency is a mixture of coins and banknotes, ranging from 1p pieces (known as a penny) to £50 notes.
While cash may be easier when paying for something of low value, paying by card can give you extra security. If you are spending more than £100 (especially online), it’s best to use a credit card as you’ll have extra protection if you need to return an item or do not receive it. By law, credit card companies must offer this protection and so it’s worth paying for more expensive items in this way.
A third of card payments int the UK are contactless, meaning you can tap your card or device without entering a pin number. If the debit card linked to your UK bank account is contactless, you’ll be able to pay for most lower value items (typically under £100) by simply taping your card on a retailer’s card reader.
What taxes are applied to goods and services?
You may notice the letters VAT on the purchases you make. This stands for Value Added Tax and is a tax payment on goods and services. VAT is usually charged at 20%, although some goods and services may be as low as 5% or even 0%. Normally, VAT is included in the price that you see within shops and so you’ll soon get used to it and find it quite easy to manage.
What’s the best way to transfer money back home?
According to YouGov research, PayPal tends to be the most popular service for transferring money on a regular basis as it tends to be easy to use and has reasonable fees. However, it’s not the cheapest when it comes to larger transactions (over £500).
Many UK banks will enable you to transfer money overseas for a charge or it might be worth using either Western Union or MoneyCorp as both sites give you complete flexibility to choose your currency and make one-off or regular payments.
You just need to keep an eye on the charges before deciding what’s best for you. Money transfer comparison site, Monito, is a good place start with comparing fees and exchange rates.
Can get any discounts as a health or social care worker?
When managing your money, it’s worth remembering that NHS staff and healthcare workers can get discounts on everyday items and services. For example, you might be able to get 10% off Asda (a popular supermarket), 20 % off popular fast food outlets such as McDonald’s and Nando’s and a fair discount on certain insurance cover.
One of the main ways that NHS and care workers can get discounts is to sign up for a Blue Light Card. Costing just £4.99 for two years’ access, you’ll earn your money back many times over as it proves to participating retailers that you qualify for a discount.
So, there you go. While there are a few things you’ll need to sort out, managing finances in the UK is quite easy. If there’s anything you’re unsure of as an applicant though, we’ll always help.
Start your journey today
Whether you’ve only just started to think about moving to the UK or are further along in the process but haven’t found the right job, you can register with Sanctuary International, and we’ll be in touch.
We look forward to hearing from you!
