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Home » Immigration » UK » Relocating to the UK » Financial information

Financial information

British banks have introduced new regulations about opening new bank accounts. Security procedures have been implemented, which can lead to delays for immigrants who try to open an account on arrival. It is very difficult to open a UK bank account whilst you are overseas.

Because it may take you some time to open an account once you arrive in the UK, it is a good idea to open a bank account in your home country that has a UK branch, or keep your existing account open at home until you are able to open a bank account in the UK. This way, you will still have access to funds. You will probably have to show proof of your UK residence, in the form of a utility bill, in order to open the account.

It is useful to get a reference from your existing bank in your country (in English) or ask them to write to you at your UK address.

Each branch of each bank makes an independent decision on whether to accept new customers.

It should also be noted that transferring funds from an overseas account to a UK bank account will take a few days and allowances should be made for this.

Currency

UK notes come in denominations of £5.00, £10.00, £20.00 and £ 50.00

Coins in the UK come in denominations of 1p, 2p, 5p, 10p, 20p, 50p, £1.00and £2.00

Credit cards

Except for in some of the smaller businesses, credit cards are likely to be accepted. An ATM will never be far away and most are linked to major credit cards as well as the Cirrus, Maestro and Plus cash networks.

Travellers cheques are widely accepted in English banks and you should buy them in pounds to avoid changing currencies twice. Change bureaus in London frequently add very high commissions and fees, so make sure you establish any deductions in advance. The bureaus at the international airports are exceptions to the rule, charging less than most banks and cashing pounds sterling travellers cheques for free.

Insurance

Regardless of nationality, anyone will receive free emergency treatment at Accident & Emergency departments of NHS (National Health Service) hospitals. Travel insurance is still advisable as it offers greater flexibility over where and how you're treated, and covers expenses for emergency repatriation.

Taxes

Property Taxes/Council Tax Property taxes are called Council Tax. It can be paid in monthly installments if you desire, and easiest by direct debit. It is calculated by property values and number of occupants.

Income Tax Income Tax is taken from your pay, and is a flat tax. You will have no forms to fill out every year unless you are self employed. The regulations on whether or not you pay taxes if you are not permanently staying in the UK are very complicated. In the UK, you can obtain relief from double taxation if your overseas income is subject to tax both in the UK and in another country. The question is: to whom must you pay which income taxes? You may need to hire a tax consultant to at least get you started.

Sales Tax (VAT) and Other Sales taxes are already calculated into costs of goods, so the price you see is the price you pay at the till or checkout. It is called VAT or Value Added Tax, and is 17.5%. It is applied to all goods/services except children's clothes. Other taxes on such things as home or vehicle purchases and utilities are also collected as well. Some people may also be subject to inheritance, capital gains, and other similar taxes.