Setting up a bank account if you’re a non-British national needn’t be as complicated as it can seem, as Susan Bevan explains.

Opening a local bank account is a much-cited headache for staff relocating to the UK – or, indeed, to almost anywhere else. Internet expat sites feature woeful tales of long delays, bureaucratic hassles and, above all, the vicious cycle of bankers wanting to see documents like rental agreements that can’t be acquired without a bank account to start with.

The natural inclination, particularly in these credit-crunch days, is to blame the bankers, but it is not altogether their fault. Many of the problems involve the documents needed to establish customers’ identity, where banks have to be much more careful these days to fight increasingly sophisticated financial crime, such as money laundering and transfer of funds to terrorists.

Banks in the UK, as in most other countries, are required by law to check new customers’ identities, but there are no precise rules for this. Thus, there can be considerable variation between banks in the ID documentation they require – and the annoying discovery that account-opening advice from friends or colleagues may not apply at the bank with a handy local branch.

High on the list of priorities for anybody leaving the UK to live or work abroad should be a call to the HM Revenue & Customs to establish your tax status with regards to income and investment while you are away, since getting it wrong can lead to a lot of financial headache and extra administration later on.

HM Revenue & Customs determines tax status and liability on a case-by-case basis, so it is important they are aware of your precise circumstances.

How the system works

If you are going to be abroad for less than a full tax year (6 April to 5 April), you generally remain liable to UK tax. To arrive at a position where you do not have to pay UK tax on your foreign earnings and income or any UK savings you may have, you must be non-resident in the UK for a period of at least one complete UK tax year. The Inland Revenue will help you to work out whether or not you are resident in the UK for tax purposes and have published a wide range of information on the subject which is available from their website.