When moving to a new country, any preconceived knowledge about banking and taxes are mostly thrown out the window. Luckily, APAC Relocation has the best experts to walk you through all the changes in many countries—including the UK.

Before you open a bank account in the UK, make sure that it satisfies the following criteria:

• Accessible and easy to transfer finances from your country of origin
• Follows international law and regulations
• Good solid capital
• Excellent customer service

There are generally just two things for a non-resident or a non-citizen needs to open a bank account in the UK:

• A photo identification card
• Proof of residence- a bill or agreement outlining where you are staying will suffice

Luckily, the top banks in the UK are some of the best in the world:

• HSBC
• Lloyds
• RBS (Royal Bank of Scotland)
• Barclays
• Santander
• NatWest
• Nationwide

Alongside the traditional banks are newer ones that specialize in Online Banking:

• Monzo
• Transferwise
• Starlingbank
• Revolut

Aside from being available 24/7 through chat, these banks offer practical and innovative solutions. Ever “lost” your card only to find it later on? These banks allow you to freeze your card then activate them again, once you realize it was just in your bag all along.

Most expat workers come with full board and lodging, and a hefty package, but what if majority of that goes to paying taxes? This is why it’s important to learn as much as you can about the tax system in any country you are planning to work in.

Luckily, APAC relocation has experts in the field that can guide you through the process. For most, the Pay-as-you-Earn or PAYE system applies. This means you only have one source of income and do not need to file any taxes. Make sure to keep your records to prove your payment for at least five years.

The government agency that handles UK’s taxes is called Her Majesty’s Revenue and Customs (HMRC). This organization’s key role is to ensure that the UK has enough funds for the needs of its citizens—National Health Service, Education, the welfare system, and public projects (roads, railways, and public housing).

One thing that can cause a lot of confusion is that tax years and dates for filing vary from business-to-business and person-to-person.

The fiscal year is from the 1st of April to the 31st of March, however, a company or corporation can follow its own financial year, the calendar year, or any 12-month consecutive period. Personal income tax filing usually happens from the 6th of April until the 5th of April.

Here are the six main taxes in the UK:

• Income tax
• National insurance contributions or a portion of earnings given to the government for State Pension, healthcare and Maternity Allowance, and other benefits
• Consumption tax or Value Added Tax—17.5%
• Excise duties on alcohol, tobacco
• Corporation Tax: tax on company profit
• Stamp Duty: tax on buying houses/shares

The UK has a ladder tax system, which means the more you earn, the more you will be taxed.

Here is that list of income tax brackets:

• Threshold of 12,500 GBP (16,100 USD). This means that your first 12,500 GBP each financial year is tax free.
• Basic tax rate of 20% on income between 12,501 – 50,000 GBP (16,100 – 64,440 USD).
• Higher tax rate of 40% on income between 50,001 – 150,000 GBP (64,445 – 193,330 USD).
• Additional tax rate of 45% on all income over 150,000 GBP (193,330 USD).

One of the first things that will be expected of you is to apply for a National Insurance number. This is issued by the HMRC and your employer to compute your contribution to National Insurance.

Unlike your income tax which is an annual contribution, the National Insurance tax is deducted per pay period.

Here is an estimate on how much you would pay for National Insurance:

• 12% of your weekly earnings between 166 GBP (215 USD) and 962 GBP (1246 USD)
• 2% of your weekly earnings above 962 (1246 USD)