Kings Student Money Mentors

Online Banking

Banking these days has become a lot easier, thanks to the digital revolution. You no longer need to physically visit the bank to make simple transactions such as fund transfers and checking your bank balance. These services can now easily be accessed at your fingertips, online or on your phone. The added benefit of mobile banking is the ability to instantly block your card in the event that it is lost or stolen.

Mainstream banks, such as Barclays, Santander, Lloyds and Nationwide, offer apps that can be downloaded from the Appstore or Play Store to access their services. Alternatively, newer banking methods include apps like Monzo and Revolut that exclusively operate online. Monzo requires you to load money onto the card, usually by a fund transfer to be able to make payments as you would with your usual bank card. This is an excellent way for you to budget, as a limited amount of money loaded onto your card enables you to restrict your payments to essential spending. These newer alternative banking methods also allow purchases in several countries abroad without worrying about paying a charge for these transactions. Therefore, these app-based online banking services provide a secure and hassle-free method of making payments.

Nevertheless, it is important to be always aware of scams and use your money with caution. If in doubt about the services being offered or the service provider, investigate and report any suspected scams immediately! 

Please see the articles (with links) below for more information on banking:

How can I open a bank account?

Opening a UK bank account as an international student

Cryptocurrency: The basics, and where to find out more

A guide to money-related apps

Buy Now Pay Later (BNPL)

MoneySavingExpert: Banking & Savings

Rhea Lopes
King’s Student Money Mentor
Part of Money & Housing Advice

The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts.

Payslips!

Why your tax code is a need-to-know

For some of us, maybe a tax code is that confusing combination of letters and numbers in the corner of our payslip that we generally ignore. For most of us students, we wouldn’t be earning enough in our part-time jobs to pay income tax anyway – the first £12,570 you earn per year is tax-free (called the Personal Allowance) and it’s only over that amount that you start to pay income tax.

What is a tax code?

In the UK we work on a PAYE (pay-as-you-earn) system. This means that with every paycheck, your employer is automatically deducting tax on your behalf. Your tax code tells them how much tax to deduct.

The numbers in your tax code indicate the amount of Personal Allowance, so for someone with the usual personal allowance of £12,570, the code is usually 1257 (with a letter on the end!). The letters also indicate things about your situation, for example, if you have more than one job, if you’re sharing some of your personal allowance with your spouse, or if you are using an emergency tax code (e.g. you’ve just started a new job and they aren’t sure how much to tax you yet!).

You can find your tax code on your payslip, or your P45, P60, and even online with HMRC.

If you’re self-employed, we’ve provided more information in the links at the bottom of this article.

What if it’s wrong?

If your tax code is wrong, one of two things could happen: you could end up paying too much tax and have less money paid into your bank account each month than you should, OR you could be paying too little tax, enjoying your salary now but being hit by a huge bill (which could run into the thousands!) in a few months or years’ time. Neither situation is good.

You can check whether your tax code is correct by using a tax code calculator, such as the one on Money Saving Expert. This can highlight any obvious problems.

How can I fix it?

It is annoying, frustrating, and sometimes very expensive to fix a tax code error, but you should sort it out as soon as possible!

If you have paid too much tax, you can get the money back! Hooray! You need to let HMRC know, which you can do either online or by phoning them.

If you haven’t paid enough tax, you will usually need to pay the money back to HMRC. This is often done by HMRC changing your tax code so that you pay more tax in the current year – this extra tax makes up for the shortfall in the previous year(s).

If it’s a large amount that HMRC can’t get through paying more tax, they will send you a bill, and you can either pay it off in one sum or arrange a payment schedule with them called a “time to pay agreement”. However, if you don’t pay it off in one lump sum you will be charged interest on it and could be charged a penalty for any late payments. It acts more like a loan.

For more information…

If you think you’re paying too much tax

Lots of FAQs for student taxes

A tax code checker

Find out if you need to pay tax in your student job

If you’re self-employed

Sarah Chitson
King’s Student Money Mentor
Part of Money & Housing Advice

Life after graduation: different types of government support

Have you ever wondered how the government can help its citizens? Where does the money come from, and in what form it is given? Welfare benefits might not be the first thing that pops up in your mind, but they may be a great source of help for many around you.

So, what exactly are welfare benefits? They represent money paid by the government to individuals and families in need. Money is usually raised through taxation and can be received by both employed and unemployed people, depending on factors such as personal income or family size. Many people will claim welfare benefits at some point in their life: if they need help to pay their rent while they are looking for work, waiting to start a new job, or are in low-paid work, for example.

The good news is there are many types of welfare benefits, meaning people in many different circumstances can benefit from them. Let us sum up here some of them:

The main welfare benefit for working-aged people is now Universal Credit, which helps cover living costs and is paid monthly. We also have New-Style Jobseeker’s Allowance (JSA), which is paid to unemployed or part-time employed individuals who are actively seeking work, and the Council Tax Reduction can be claimed by low-income individuals (and by those receiving other benefits) to help pay their Council tax.

Next in line comes the Employment and Support Allowance (ESA), offering financial support to those with a disability or illness that impacts their ability to work. People who have a health condition/ disability which affects their ability to carry out “daily living”/ “mobility” activities may also be entitled to Personal Independence Payment (PIP), offered regardless of whether they are employed or not. It might be useful to know that this last benefit is not means-tested, and can be paid in addition to Universal Credit, New Style Jobseeker’s Allowance, and a few other welfare benefits.

It might also be useful to know about Carer’s Allowance for people caring for a disabled or ill person, or about Child Benefit if you are bringing up a child under 16 (or 20 under certain conditions). Also, the Bereavement Support Payment is offered to those whose spouse/ civil partner died in the last 21 months.

Oh, I almost forgot! If you have No Recourse to Public Funds (NRPF), you won’t be able to claim benefits considered public funds (such as Universal Credit or Child Benefit), but there are some benefits which you can still access (New Style Jobseeker’s Allowance, for example).

Now, it would take too much time to get into detail for all of them, so here are my last tips for you: if you believe you or someone you know might be eligible to receive welfare benefits, go on the UK Government website to learn more about the types of welfare benefits available, eligibility requirements and application steps.

If you require further assistance, the following charities can provide help: Citizens Advice, Turn2us, Shelter. Meanwhile, the university’s Student Services Online has an article called ‘Claiming welfare benefits when your course ends’, providing information related to help and benefits you may be able to claim after graduation. And most importantly, King’s College London’s specialist advisors can also offer support to welfare benefits-related inquiries.

Ilinca Olteanu
King’s Student Money Mentor
Part of Money & Housing Advice