Financial Checklist for Newcomers: How to Settle Financially in the UK
Blog post, 13th May 2025
Financial Checklist for Newcomers: How to Settle Financially in the UK
Moving to a new country brings excitement and challenges, especially when it comes to managing your finances. If you’re relocating to the UK, having a clear financial roadmap can make your transition smoother and less stressful. This comprehensive checklist covers the essential financial steps you’ll need to take when settling in the UK.
Before You Arrive
Research Cost of Living
Understanding how far your money will go is crucial before making the move. UK living costs vary significantly by region, with London being considerably more expensive than other areas.
- Research average rent, utilities, groceries, and transportation costs in your specific destination
- Use cost comparison tools to compare your current location with your UK destination
- Factor in council tax, which varies by property and location
Understand the UK Tax System
The UK has a Pay As You Earn (PAYE) system for income tax and uses tax codes to determine how much tax is deducted from your salary.
- Learn about UK tax years (April 6 to April 5)
- Familiarise yourself with income tax bands and the personal allowance
- Check if you need to complete a Self Assessment tax return
Plan Your Initial Budget
Arriving with sufficient funds to cover your first few months is essential.
- Budget for temporary accommodation if needed
- Plan for security deposits (typically 5 weeks’ rent)
- Include set-up costs for utilities and home essentials
- Factor in initial transportation expenses
First Priority: Banking
Opening a UK Bank Account
This should be one of your first priorities upon arrival.
- Research traditional and digital banks—traditional banks may require more documentation but offer branch services; digital banks like Monzo, Starling, or Revolut may provide quicker setup
- Prepare necessary documentation:
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- Passport or ID
- Proof of UK address (utility bill, tenancy agreement)
- Proof of immigration status
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- If you’re struggling to provide proof of address, some banks offer accounts specifically for international customers
Money Transfer Services
Until your UK bank account is active, you’ll need ways to access your money.
- Research international money transfer services with favorable exchange rates (Wise, Revolut, XE)
- Consider keeping a bank card from your home country as backup
Essential Setup Steps
National Insurance Number
Your National Insurance (NI) number is crucial for working and paying tax in the UK.
- Apply for your NI number as soon as possible
- You can start working before receiving your number, but you must have applied
- Your employer will use a temporary tax code until your NI number is assigned
Housing and Utilities
When securing accommodation:
- Budget for deposit protection schemes
- Set up direct debits for rent and utility payments
- Shop around for utility providers—comparison sites can help you find the best deals
- Register for council tax in your local area (students may be exempt)
Healthcare Financial Planning
The National Health Service (NHS) provides free healthcare, but there are financial aspects to consider.
- If you’re on a visa, check if you’ve paid the Immigration Health Surcharge
- Register with a local GP as soon as possible
- Budget for prescription costs (currently £9.90 per item in England)
- Consider dental payment plans, as NHS dental care has charges
Building Your Financial Foundation
Employment and Income
Understanding your employment rights and pay is essential.
- Ensure you have the right to work in the UK
- Check your employment contract for salary, pension contributions, and benefits
- Understand statutory benefits like sick pay and holiday entitlement
- If self-employed, research your tax obligations and necessary registrations
Building a Credit History
UK credit history doesn’t transfer from other countries, so you’ll need to build it from scratch.
- Register on the electoral roll if eligible
- Consider credit-building products like Loqbox or a secured credit card
- Pay bills on time and maintain good financial habits
- Use services that report to credit reference agencies
Pension Planning
The UK has automatic enrollment for workplace pensions.
- Understand your workplace pension scheme
- Check contribution rates from both you and your employer
- Consider additional voluntary contributions if appropriate
- Research how UK pensions differ from retirement plans in your home country
Protecting Your Finances
Insurance Considerations
Certain types of insurance are essential or legally required in the UK.
- Contents insurance for your belongings
- Building insurance (if you own property)
- Car insurance (mandatory if you own a vehicle)
- Life and income protection insurance as needed
Emergency Fund
Building a safety net is crucial when living in a new country.
- Aim to save 3-6 months of essential expenses
- Keep this money in an easily accessible savings account
- Research and compare interest rates for savings accounts
Long-term Financial Planning
Understanding ISAs and Tax-Efficient Saving
Individual Savings Accounts (ISAs) offer tax advantages for UK residents.
- Cash ISAs for savings
- Stocks and Shares ISAs for investments
- Lifetime ISAs for first-time home buyers or retirement
Property Considerations
If you’re planning to stay long-term:
- Research Help to Buy schemes for first-time buyers
- Understand the UK mortgage market and how residency affects eligibility
- Learn about stamp duty and other property taxes
Useful Resources
- Citizens Advice Bureau offers free financial guidance
- Money Helper (formerly Money Advice Service) provides free money management tools
- Your local council website for information on local services and payments
- HMRC website for tax information
- Financial Conduct Authority’s register to check if financial advisers are legitimate
Final Tips
- Keep detailed records of all financial transactions and documents
- Stay informed about changes to UK financial regulations that may affect you
- Consider seeking advice from financial advisers specialized in expatriate finances
- Connect with community groups for newcomers who can share practical advice
By following this checklist, you’ll be well on your way to establishing a solid financial foundation in the UK. Remember that financial systems vary by country, so give yourself time to adjust and learn. With proper planning and information, you can navigate the UK’s financial landscape with confidence.
Download the Hyfa Foundation Pocket Guide to Moving to the UK for more help with housing, healthcare, and employment.
Banking in the UK: A Guide for New Arrivals – How to Open a Bank Account and Understand the System
Blog post, 13th May 2025
Banking in the UK: A Guide for New Arrivals
Introduction
Moving to a new country comes with plenty of admin, and banking is often near the top of the list. Setting up a UK bank account helps you receive wages, pay rent, shop online, and manage your day-to-day spending. But if the system is unfamiliar, knowing where to begin can be tricky.
This guide explains how the UK banking system works, what types of accounts are available, the difference between banks and building societies, and how to open an account as a new arrival.
1. Understanding the UK Banking System
The UK has a well-established banking system with a mix of traditional high street banks, building societies, and digital-only banks. It’s regulated by the Financial Conduct Authority (FCA) to ensure fairness, security, and transparency.
All UK banks and building societies are also covered by the Financial Services Compensation Scheme (FSCS), which protects your money up to £85,000 per person, per institution in case the provider fails.
2. What’s the Difference Between a Bank and a Building Society?
While they offer similar services, the structure of banks and building societies is quite different:
| Feature | Banks | Building Societies |
| Services offered | Full range – accounts, loans, credit | Mainly personal banking and mortgages |
| Customer focus | May prioritise shareholders | Often more customer- and community-focused |
| Ownership | Shareholders | Members (account holders) |
| Profit distribution | Profit goes to shareholders | Profits reinvested or returned to members |
Example banks: HSBC, Barclays, NatWest
Example building societies: Nationwide, Yorkshire Building Society
Many building societies are known for better interest rates on savings and a more personal approach, though they may have fewer branches and products.
3. Types of Bank Accounts in the UK
Depending on your needs and immigration status, here are the most common account types available:
- Current Account: Standard account for day-to-day use, includes a debit card, direct debits, and online access
- Basic Bank Account: A simpler version without an overdraft – easier to open if you have limited ID or credit history
- Savings Account: Helps you put money aside with interest – can be opened alongside a current account
- Student Account: For those studying in the UK – often comes with perks like railcards or interest-free overdrafts
- Digital-only Account: Banks like Monzo, Starling or Revolut operate fully online – fast setup, useful if you don’t have proof of address yet
4. What You Need to Open a UK Bank Account
To open a standard account, you’ll usually be asked for:
- Proof of identity: Passport or Biometric Residence Permit (BRP)
- Proof of UK address: Utility bill, tenancy agreement, or a letter from your employer/university
- National Insurance number: Sometimes requested, especially if you’re working
Tip: If you don’t have a permanent address yet, some digital banks allow verification through their apps using location services or scanned documents.
5. Choosing the Right Provider
Here are a few things to consider when picking a bank or building society:
- Ease of account setup – do they offer online signup or require an in-branch visit?
- Customer support – do they offer multilingual service or in-app chat?
- Fees and charges – some charge for overseas transfers or cash withdrawals
- Reputation and reviews – helpful to know how newcomers have been treated
- Digital tools – do you want strong budgeting features or a user-friendly app?
6. Can You Open a Bank Account Before You Arrive in the UK?
Most high street banks require you to be in the UK with an address before you open an account. However, digital banks like Monzo and Revolut may allow you to start the process using your phone and passport while you’re still abroad – a useful option for planning ahead.
7. Common Questions from New Arrivals
Can I open an account without a job?
Yes – you don’t need to be employed to open a bank account, but it may affect what type of account or credit options are available to you.
Do I need a UK address?
Usually yes, but some banks and apps offer alternatives like letters from a hostel, university, or employer.
Can I have more than one account?
Yes – many people open a digital account for everyday spending and a traditional one for salary or rent.
8. Hyfa Foundation Tip: Be Clear on Your Rights
If a bank or building society refuses to open an account, they should explain why. You’re entitled to access basic banking services, and there are alternatives if the first provider isn’t a good fit.
Conclusion
Opening a bank account is a vital part of settling into life in the UK. From traditional high street banks and community-focused building societies to fast, flexible app-based options, there’s a solution for every situation.
Knowing what to expect helps you take control of your finances early and avoid unnecessary delays.
Download the Hyfa Foundation Pocket Guide to Moving to the UK for more help with housing, healthcare, and employment.