Opening a bank account in London is a tricky task. Many banks will require proof of address which you may not have available when you first arrive.

You can make the process of opening an account easier by signing up with a transition company. The following companies have offices in Australia & New Zealand and will help you get an account sorted (for free):

• 1st Contact
• My OE

Both of the companies above also hold free seminars throughout Australia and New Zealand. We recommend
going along – they provide some great information and can
inspire you to get moving and plan your trip.

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Transferring your dollars into British Pounds

There are a lot of options when it comes to currency transfer. Do your research before you leave to ensure you get as many pounds for your dollars as you can.

While your bank will most likely offer a currency transfer service, it's worth asking what fees are involved and exploring other options before handing over your hard earned cash.

Here are some tips:

• Don’t take large sums of cash overseas with you. There are restrictions on how much you can take but more importantly you run the risk of it being lost or stolen.
• Avoid travelers cheques. These are aimed at people taking smaller amounts of money for their holiday – not for people moving permanently (or for longer than several weeks). Travelers cheques are often exchanged at poor rates and incur additional fees.
• Do your research and plan in advance! Start watching the exchange rates as soon as you know you are moving – by grabbing a great rate and shopping around you can ensure that you get more pounds for your dollars.
• The best way to maximise the number of Pounds you receive is to do a direct transfer into a UK bank account although you may not have this until you arrive in London.

To combat this problem, we recommend Currency Online as they allow you to do everything online (through their website and internet banking).

You can watch the exchange rate in advance, transfer Australian or New Zealand dollars into your Currency Online account and leave it there until your UK bank account is open.

Another option is to speak with your local bank to see if you can get an account opened in GBP. This way you can transfer money into your account while the exchange rate is good – and then make an internet banking transfer when you arrive in London and your account is opened.

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Umbrella Companies

There are two main ways you can work while on your overseas experience, these are permanent or contracting.

Working on a permanent basis is exactly the same in the UK as it is anywhere else, you are employed and these is no end date to employment, you get access to standard benefits (holiday pay, sick pay).

The other way you can work is as a contractor where by you contract yourself out to work either through a recruitment agency or individually, there are many benefits to working this way including flexibility when working and also enhanced rates of pay. Contracts can be anything from day to day, two months even up to two years.

If you work on a permanent basis unfortunately there is only one way you can be paid and this is through what’s called PAYE. When working PAYE your income will be subject to PAYE and National Insurance at the standard rates. These rates increase the more you earn.

If you work on a contracting / temping basis your options open up quite a lot. You are suddenly presented with two main options each with different requirements features and benefits.

Your first option is as a PAYE employee which we have already been over. The second option you have is to be employed through an Umbrella Company. When working through an Umbrella Company you become an employee of that company. You will still be subject to tax and national insurance at the standard rates however the benefits to working through an Umbrella Company is the ability to claim expenses which help to lower the amount of tax you pay.

Depending on your contract you can claim anything that is a business related expense including, travel to and from work daily, subsistence (meals), travel to the UK and temporary accommodation when you arrive to name a few.

As an example if you earn £500 in a week and had £200 worth of expenses you would only be subject to tax and NI on £300. The £200 you spent in expenses would then be paid directly to you gross.

The third option you may have is to work through your own limited company, this structure is a little more in depth but can be very rewarding to contractors.