Starting a job
Step 2 – Take action
Once you've started your job
On your first day you will normally be required to bring in your P45 from your previous employment (if applicable), your National Insurance number and your bank details – plus proof that you are allowed to work in this country, for example your passport. It's important that you have these as without them you may end up paying too much tax or, in the worst case, not be able to start work.
Your payslip
When you get your payslip, it's important that you understand it – after all, how else will you know you're getting what you should? It may look complicated but it's pretty straightforward once you get to grips with what all the numbers mean. You will need to check you're on the right tax code. If this is your first job you're likely to be on emergency tax and will be entitled to a rebate. Your payroll department will be able to help or you can contact your tax office. For more information visit Directgov.
If you are self–employed you will need to register with HMRC (HM Revenue and Customs). For more information visit Directgov.
Managing your money
Now you're working, it's a good idea to keep track of your spending and start paying off debts or saving for tomorrow. If you do this as soon as you get your first salary you won't miss the money and it will soon become second nature. Our Budget calculator will help you work out your weekly or monthly income and expenditure and see how much you've got left over. For more information see Saving for tomorrow.
Bear in mind, if you don't keep up the repayments on any loans or credit cards you could damage your credit rating. For more information see Loans and Credit cards.
Saving
Although you've only just started your job, now is the time to think about your retirement. People are living longer and retirement can last twenty or thirty years – the current State pension is just £90.70 a week for a single person or £145.05 for a couple. If you want more, you'll need another source of retirement income. Use our Pension calculator to see how much you will need to save to get the income you want.
If you work for a business with more than five employees, your employer should offer you access to a pension scheme. They may offer:
- a salary–related occupational pension scheme;
- a money–purchase occupational pension scheme;
- a group personal pension; or
- a stakeholder pension.
For more information see Pensions.
You may already have a pension and want to look at whether you can transfer it into your new one. You will need to understand the risks before you do this – for more information you can download Pension transfers - the risks of salary-related occupational pension transfers from Publications, where you can also order it online.
Other benefits
Most companies offer their staff benefits, such as a season ticket loan, healthcare or life insurance. These are usually good value but you should still check the small print to see what you're covered for.
If you are given the option of converting staff benefits to cash you should bear in mind you will need to pay tax on the cash you get.
You will also pay tax on some benefits, such as healthcare, but it will probably still work out cheaper than getting cover yourself – it's worth doing your homework before making these decisions. For more information speak to your HR department.
What next?
Explore more guides
- Get to grips with your money – for top tips on budgeting.
- Saving for tomorrow – putting money aside for emergencies or saving for your future goals, this guide gives you some useful tips.
Top tips
- Locate your P45, National Insurance number, bank details and proof that you are allowed to work in this country – you'll need them on your first day at work.
- Get to grips with your payslip.
- Don't leave planning for your retirement until later – the sooner you start the better.