Sorting out money is one of the first things you have to do after moving to the UK, and it is where newcomers hit the most friction. You often need a bank account to get paid, a National Insurance number to work, and a correct tax code so you are not overcharged, and each one depends a little on the others. This guide explains how the pieces fit together and links to a detailed walkthrough for each step.
Everything here is written for people who have recently arrived or are about to, and it is based on official sources including GOV.UK, HMRC and the Financial Conduct Authority. It is general information, not financial advice.
Your first weeks: a money checklist
Most newcomers deal with these in roughly this order. You do not have to finish one before starting the next, and several can run in parallel.
- Open a bank account so you can receive wages, pay rent and set up direct debits.
- Apply for a National Insurance number if you plan to work. You can start a job before it arrives.
- Check your tax code on your first payslip so HMRC taxes you correctly.
- Set up a way to send or receive money abroad if you support family or still have costs back home.
- Budget for council tax and the cost of living, which vary a lot by region.
Opening a UK bank account
You have a legal right to a basic bank account if you are lawfully resident in the UK, even without a UK credit history. Traditional banks usually ask for photo ID and proof of a UK address, while app-based banks such as Monzo, Starling and Wise can often open an account before you have address paperwork.
Read the full walkthrough: How to open a UK bank account as a newcomer.
Getting a National Insurance number
A National Insurance (NI) number is your unique reference for tax and benefits. It is free, it stays with you for life, and you need one to work, though you are allowed to start a job before it is issued if you can prove your right to work. Applications can take up to four weeks.
Read the full walkthrough: How to get a National Insurance number in the UK.
Understanding your tax code and Income Tax
Your tax code tells your employer how much tax-free income you get before Income Tax applies. The standard tax-free Personal Allowance is £12,570 a year, which is why the most common tax code is 1257L. New arrivals are often put on an emergency code at first and overtaxed, then refunded once HMRC has the right details.
Read the full walkthrough: UK tax codes explained for newcomers.
Sending money abroad
High street banks are rarely the cheapest way to move money internationally. Specialist providers usually offer stronger exchange rates and lower fees, and the real cost is the exchange-rate markup plus the transfer fee, not the fee alone.
Read the full walkthrough: Sending money abroad from the UK.
Council tax and the cost of living
Council tax is a local charge based on your property band and area, and it is separate from rent. Living costs differ sharply between regions, so a salary that stretches in the north may feel tight in London.
Related reading: Understanding UK regional living costs and how double taxation relief affects newcomers.
Frequently asked questions
Do I need a National Insurance number to open a bank account?
No. The two are separate. You can open a bank account without an NI number, and you can apply for an NI number without a bank account.
Can I get paid before my National Insurance number arrives?
Yes. You can start work and be paid as long as you can prove your right to work. Give your employer the number as soon as it is issued so your tax records line up.
Why was my first UK payslip taxed so heavily?
New starters are often placed on an emergency tax code that gives little or no Personal Allowance. Once HMRC has your full details, your code is corrected and any overpaid tax is usually refunded automatically.
Which bank is best for someone with no UK address yet?
App-based banks such as Monzo, Starling and Wise are the usual starting point because they can verify you without traditional address documents. You can switch to a traditional bank later.
