Starting a job

Most employers will want to pay your wages into a bank
account, so if you don’t already have one, you’ll probably
need to open one.

A contract of employment is made as soon as you accept a job offer. When you get it, you’ll usually be asked to sign and return it. Make sure you keep a copy for yourself in a safe place.

Your employer will need your National Insurance number.
And, if you are changing jobs, they will also need your P45
from your previous employer.

It’s important you have the right paperwork, as without it you may end up paying too much tax or, in the worst case, not be able to start work.

Make sure you’ve got some kind of proof that you are allowed
to work in the UK, such as a copy of your passport, a visa or a work permit.

Think about how you will manage between starting work and getting your first salary. You may have to pay for travel, lunch and maybe even new clothes before your first payday. And if this is your first job, you will probably not have had any of these expenses before. So if you’re worried you’ll run out of money before you next get paid, use our money stretcher calculator to help you work out how much you have left and how to make it last.

You can always dip into your savings to tide you over, but remember, there may be a charge for taking out money at short notice from some types of account, so always check first.

You could always borrow money for a short period but, unless you borrow from family or friends, it will probably cost you. Overdrafts, short-term loans or credit unions are all options, but make sure you understand how much you will have to pay back.

If you work for a business with five or more employees, your employer should offer a pension scheme. You don’t have to join their scheme, but it’s usually a good idea to think about it, especially if they pay money into it. From October 2012 employers will have to offer and contribute to a pension scheme. They will also have to enrol eligible workers into it.

You may already have a pension from a previous job and want to look at whether you can or should transfer it into your new pension. A pension is an important investment for your retirement, so you should think about getting professional advice before doing anything, so you can find out the risks involved.

As an employee, you are likely to qualify for the State Second Pension (an additional State Pension) unless your employer’s scheme has contracted out. This means your employer has a separate pension scheme, into which the government pays your National Insurance contributions and Income Tax relief.

If your employer doesn’t currently offer you a pension, it might be a good idea to make your own arrangements, such as a stakeholder or personal pension. From October 2012 all employers will have to offer and pay into a pension scheme.

Some employers offer additional benefits on top of your salary. These can include a company car, or insurance products such as life cover, travel insurance and health insurance.

Other benefits may include help towards paying for childcare and travelling costs.

These benefits are often cheaper than making your own arrangements, but you may pay tax on them if you earn above a certain amount.

If you are currently getting any state benefits, find out how your new job will affect these.

If you’re a parent, carer, or on a low income, you may qualify for tax credits. See if you qualify and how you can claim.

When you get your first payslip, make sure you check you’ve been given the right tax code. If this is your first job, you’re likely to be on emergency tax, but you can claim back tax that you’ve overpaid. Your employer may be able to help you or you can contact your tax office.

National Insurance contributions go towards paying for certain social security benefits, including the State Pension. How much you pay depends on how much you earn, and whether you’re employed or self-employed.

If you haven’t been paying National Insurance contributions or getting National Insurance credits, you may want to make extra contributions when you start work.

During the year you’ll receive various tax forms from your employer showing how much income you’ve received and how much tax you’ve paid.

These are important forms which you should check to make sure the information is correct and then keep in a safe place.

A new job may affect your money situation, so it’s a good idea to review your whole budget. Using a budget planner may help you to make sure you’ve covered everything.

If you do, think about paying off debts or saving for the future. Try and get into the habit of putting some money away each time you get paid, and you’ll soon find you don’t even miss it.

Take a moment to jot down some money goals you’d like to set yourself, for example saving for something special, paying off or reducing your debts or protecting yourself against the unexpected. Answer some simple questions on our health check and it will give you a personal action plan of your money must-do’s and longer-term goals.