Relocating to the UK for work offers exciting opportunities, but it also brings the responsibility of understanding the country's tax and banking systems.
For foreign professionals, navigating these areas can feel like a daunting task, especially with the ongoing changes in 2025. However, mastering these aspects early on is crucial to ensuring smooth financial management and compliance with UK regulations.
In this guide, we’ll break down everything you need to know about taxes and banking in the UK. From understanding the latest tax changes to setting up your bank account, we’ll provide you with the essential tools and tips to make your financial journey here straightforward and stress-free.
Let’s dive into how you can take control of your finances in the UK and set yourself up for success in 2025 and beyond.
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The UK tax system can seem complex, but with a clear understanding of its key components, you can ensure that you stay compliant and manage your finances effectively.
In 2025, several significant changes to the UK tax structure are expected to impact migrant professionals. Whether you’re starting a new job, working freelance, or running your own business, it’s essential to know how the system works and how recent updates might impact you.
In the UK, income tax is based on the amount of income you earn, with higher earners paying a larger proportion of their earnings. The government sets tax bands, which are thresholds that determine how much tax you pay based on your earnings.
For 2025, the tax bands have seen a slight adjustment to account for inflation, but the structure remains largely the same. Here’s a quick breakdown of the tax bands for the 2025/2026 tax year:
These bands will vary slightly depending on where you live in the UK, as Scotland has its income tax system. However, for most migrant professionals, the above tax bands will apply.
National Insurance is another key component of the UK tax system, and it is used to fund state benefits such as the NHS, pensions, and unemployment support. As a migrant professional, it’s important to understand how your National Insurance contributions (NICs) are calculated.
In 2025, NIC rates are set to remain relatively stable. Here’s a quick look at how NICs are calculated:
In addition to the personal allowance, various tax-free allowances and deductions could reduce the amount of tax you pay. For example, if you're married or in a civil partnership, you may be able to claim the Marriage Allowance, which allows you to transfer part of your allowance to your spouse or partner.
The key takeaway for 2025 is that tax bands remain similar to previous years, but small changes to the income thresholds and National Insurance contributions may affect the way your income is taxed.
If you earn more than £12,571, you’ll pay tax, and if you earn above £125,140, you’ll pay a higher rate.
To avoid surprises at the end of the year, it’s crucial to keep track of your earnings, understand the deductions you can claim, and make sure you’re in the right tax band.
How to Register for Taxes in the UK
Registering for taxes in the UK is a crucial step for both employed and self-employed individuals to ensure compliance with HM Revenue & Customs (HMRC) regulations. The registration process varies depending on your employment status and personal circumstances. Below is a comprehensive guide to help you navigate the registration process.
Before registering for taxes, you need a National Insurance number, which is unique to you and used to track your taxes and benefits.
How to Apply:
It can take up to 4 weeks to receive your NI number after your identity has been confirmed.
If you have income that isn't taxed at source, such as self-employment earnings, rental income, or significant savings interest, you may need to register for Self Assessment to declare this income.
For Self-Employed Individuals:
For Non-Self-Employed Individuals with Untaxed Income:
Once registered, it's advisable to set up a Personal Tax Account with HMRC:
Failure to register or submit returns on time may result in penalties.
Opening a bank account in the UK is one of the first steps to managing your finances efficiently. Whether you're a salaried professional, a freelancer, or a business owner, having the right account makes transactions smoother, from receiving payments to paying bills.
Most UK banks require:
- Proof of identity (passport or biometric residence permit)
- Proof of address (utility bill, tenancy agreement, or bank statement)
- Some banks may allow online applications using digital verification
Many banks cater to international professionals by offering easy account setup. Popular choices include:
HSBC, Barclays, Lloyds – Traditional banks with strong reputations
Monzo, Revolut, and Starling Bank – Digital banks with fast setup and no monthly fees.
If you need to send money abroad, services like Wise, Revolut, and PayPal offer lower fees than traditional banks. Some UK banks also provide multi-currency accounts for easier international transactions.
Choosing the right banking setup will make your financial journey in the UK smooth and stress-free!
Managing your money wisely is key to making the most of your earnings in the UK. Here’s how to stay financially secure and plan for the future.
Use budgeting apps like Emma, Monzo, or Yolt to manage expenses and set savings goals.
With smart planning, you can navigate the UK financial system with confidence and build a secure future.
For professionals looking to establish themselves in the UK, Tech Nomads provides tailored strategies and full support in navigating the UK visa process.
Tech Nomads is a global mobility platform that provides services for international relocation. Established in 2018, Tech Nomads has a track record of successfully relocating talents and teams. Our expertise in adapting to regulatory changes ensures our clients’ satisfaction and success.
Tech Nomads Club is a curated global community for highly skilled professionals.
We host free, application-based events including expert panel talks, start-up pitch days, members-only networking, informal meetups, and fireside conversations with industry leaders.
Membership is free but selective — open to those building across borders and seeking meaningful growth through connection, knowledge, and community.
We also produce a regular podcast, sharing real stories, insights, and voices from inside the Club.
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