Banking, Money and Taxes in the United Kingdom
Opening a bank account in the UK can be a frustrating process for expats, and with over 20 commercial possibilities, choosing the best institution can often be the most complicated part. Banking in the United Kingdom
In order to open a bank account in the UK, most banks require proof of income and employment, evidence of a local address, and a passport.
It can be helpful to have a letter of introduction from your home bank, specifically testifying to your credit worthiness and financial track record. A series of recent bank account statements will also be helpful. Banks vary in the strictness of their requirements so shop around.
The major banks including HSBC, Royal Bank of Scotland, Lloyds TSB, Barclays and NatWest. Banks do not charge for most minor transactions, including issuing cheques and drawing money from ATMs.
Taxes in the United Kingdom
Expats who have lived in the UK for over 183 days across the tax year must pay tax on their UK or overseas-generated income. Tax rates vary from 20 percent for income up to £36,000 annual gross income, and as much as 40 percent for amounts over £36,000. The main personal allowance is £5,435. The tax year ends on 5 April.
Expats must complete form A86, downloadable from www.hmrc.gov.uk, and submit to their local tax office, for the purposes of determining their correct tax status. Until this is done you will be assigned a temporary insurance number to establish your tax level. This will mean you will pay a higher rate of tax (“Emergency tax”) but this can be refunded once you acquire full tax status.
