Turn2us - to access benefits & grants.

Starting a Job

Life is always busy when you start a job but particularly if it is your first job or you are returning to work after some time. This section aims to help you get organised and also to think about your financial future now that you are earning.

Step 1: The short term

You probably will not have much time once your new job starts, so before you start try to get as organised as possible.

Do you have a bank account?

Most wages get paid straight into bank accounts these days so if you do not have one already, it’s a good idea to open a bank account.

See Banking.

Calculating work-related costs

As well as getting paid, going out to work usually costs us something so it is a good idea to spend a bit of time thinking about what your costs are likely to be. You can then put aside enough money to cover the costs. Examples include:

• travel costs
• lunches, snacks and drinks
• work clothes
• childcare costs.

In some cases, you can get help with these costs, for example, if you have taken a job after being on benefits. See People on a low income

Will your benefits change?

If you are receiving benefits or tax credits, your entitlement may change once you start work. Contact your local benefits office and/or HM Revenue and Customs and explain your new circumstances. It is very important to do this as otherwise you may be committing a criminal offence. See People on a low income

Are you eligible for Tax Credits?

Tax Credits are payments made by HM Customs and Revenue to people on a low income who are working or have children. You can use the Turn2us Benefits Checker to find out if you qualify for any Tax Credits. If you do, make sure you apply for them as soon as possible because payments can usually only be backdated by three months. See Tax Credits

Does your employer offer benefits?

Find out if your employer offers any benefits like childcare vouchers, season ticket loans or a company (occupational) pension. See Childcare costs and Childcare vouchers

Make sure you have the right paperwork

On your first day at work, your employer is likely to ask you to bring in some paperwork such as your passport, national insurance number, bank details and, if you have worked before, a form called a P45, which records your pay and the tax and national insurance that has been deducted in the current tax year. There may be delays if you do not have the right paperwork, so ask your new employer in advance what you should be bringing in.

Is your tax code correct?

All of us have to pay tax to the Government on the money we earn. When you get paid for the first time, make sure the tax code on your payslip is correct. If it is not, you could end up paying more of your salary in taxes than you need to.

The Directgov website has more information on tax codes (this link opens in a new window) and what to do if yours is wrong.

See also Turn2us's information section on tax matters

Step 2: Thinking about the long term

Now that you are working, perhaps it is time to start thinking about the future and hatching a long-term plan to help you live the life you want.

Budgeting

If you do not already have one, it is probably a good idea to make yourself a budget. This will help you stay in control of your spending and put aside money for saving if you want to. See Budgeting

Saving

With money coming in, is this the right time to start saving? By putting aside some of your salary every time you get paid, you can save up, perhaps for something specific such as a holiday or a car or maybe just for a ‘rainy day’. You may also want to invest some money for the future, perhaps to pay for something like your children’s university education. See Saving and investing.

Pensions

If you have just started work, retirement is probably the last thing on your mind but saving money into a pension is a good habit to get into. If you start right away, you will not miss the money you are saving. See Pensions and Retirement

Step 3: Would you like to know more?

The Financial Services Authority has a guide to starting a job (this link opens in a new window), which has lots of detailed information

The Directgov (this link opens in a new window) website has a section on working in the UK .This includes lots of helpful information for people new to working here

The charity YouthNet UK (this link opens in a new window) has a useful website which includes a section on working life for young people with information on starting jobs.

Last updated: 25 March 2010