New to the UK > Checklist for moving back to the UK the right way

Checklist for moving back to the UK the right way

Wollit Team4 minute read · Updated 23rd July 2024

Moving back to the UK after living abroad can be an exciting but also difficult process. You’ll have to reopen accounts, go through some bureaucratic red tape, and even re-register for some services. Depending how long you left the UK for, you might have to go through some of the steps that people new to the UK have to go through.

This is why we created this checklist – to guide you through these key steps and help you have a smooth transition back to life in the UK.

1. Reactivate or open a new UK bank account

This will be the very first issue you encounter. Most UK banks will close your account if you’re not a resident in the UK for two consecutive years. This is because they have to comply with tax regulations – they can’t allow people who are tax resident in another country to use a bank account abroad to potentially try to avoid tax.

Here is what you need to do:

If you had a UK bank account previously, make sure it's still active. Log in to your bank app or online account, or reach out to your bank if you can’t remember the credentials.
If your account was terminated, then open a new UK bank account.
If you’re not eligible for a full UK bank account (which can happen if you were gone for more than six years, meaning your credit file is very thin on recent credit history), consider opening a basic bank account. A basic bank account works the same way except that it doesn’t offer overdraft.

2. Understand your tax obligations

Depending on how long you were outside of the UK, you probably are not a tax resident here anymore. This means that you’ll have to do a few things:

You might need to re-register for Self Assessment if you plan on earning any income outside of a full-time job (for example, from renting property or freelancing).
You should also need to check your National Insurance (NI) record and understand if your State Pension has been affected.
And you should also understand the tax and customs responsibilities for importing your personal belongings (especially now, after Brexit).

You can do all of these things on the GOV UK website, but we recommend you talk to a tax accountant as well so you don’t make a mistake.

3. Understand your student loan obligations

If you’ve taken a student loan in the UK before, then you should know that repaying it is based on how much you earn.

Because of this, you must notify the Student Loans Company (SLC) if you’re leaving the UK for more than 3 months. You can do this on this GOV UK page. Otherwise, you might be overpaying since you’re expected to keep repaying your loan unless you can give proof that your income abroad is below the threshold.

This also means that you need to notify the SLC when you return back to the UK, otherwise you’ll have to continue making repayments at potentially a higher rate of interest.

4. Make sure you have healthcare coverage

The main steps here also depend on how long you’ve been outside of the UK, and if you were originally a British permanent resident or citizen. Here is what you need to do:

Register with a General Practitioner (GP) and a dentist as soon as you return. You can find your closest GP on the NHS website.
If you don't yet have permanent residency, you should also get private health insurance to cover your needs. You might be asked for a record of it when you apply for settled status (permanent residency) in the future, too.
If possible, try to transfer your medical records from your previous healthcare provider abroad to your new UK GP.

5. Review your pension plans

If you have made any pension contributions abroad, you might want to transfer them to a UK pension scheme.

This depends on each country, and in many cases you might be asked to pay tax in that country when transferring a pension pot, so it’s best to talk to a specialist advisor.

6. Update your will

If you’ve made a will while abroad, you might want to update it to make sure it's valid in the UK. A great app for this is Farewill, which lets you create a UK will for a low fixed price, all online.

However, they only cover assets held in the UK – if you own significant assets abroad, you should seek specialist (and a bit more expensive) legal advice. Otherwise, try to sell or transfer these assets to the UK.

7. Rebuild your credit history

Finally, and definitely not the least important, is rebuilding your credit history. Depending on how long you’ve been away, your credit history may be a "blank slate".

Here are the essential steps you need to take to reestablish your credit history:

Register to vote or update your existing registration when you move again (for example, if you’re in temporary accommodation for now). This should be the very first step as it helps the credit reference agencies verify your identity.
Put as many household bills in your name and pay them by direct debit. This payment history will also go on your credit file.
Get a mobile phone contract, ideally one that comes with a handset. This might be your very first credit agreement in a long time, and you might not actually pass the credit check for it, so you should check your eligibility with the mobile network company first.
Consider signing up for a credit card or, even better, downloading a credit-building app.

Building your credit history with a credit card requires you to first buy things on debt and then repay them as soon as possible (or you’ll be hit with high APR charges). With Wollit, you only need to pay a fixed monthly subscription. Wollit then reports this subscription to all the credit reference agencies.

This directly builds your credit history and improves your credit score – while keeping you safe from high APR charges, maxed-out credit limits, or the risk of more debt.

On top of this, Wollit can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you’re responsible, despite your “blank slate” credit history.

In time, this will improve your credit profile, and you’ll find yourself eligible for the financial products you need to resume your life in the UK the right way.