First Job Starter Checklist

Preparing for Your Graduate First Job

Transitioning from university lectures to a full-time professional role is a major shift. You are moving from a flexible schedule to structured working hours, and your financial responsibilities are about to change significantly. Getting your administrative tasks sorted before your first day will save you a massive amount of stress during your first month.

Before you even step into the office, your new employer’s human resources department will need specific documents from you. You must prove your right to work in the UK, which usually involves presenting a valid passport or a share code if you are an international graduate. They will also need your National Insurance number and your bank details to ensure you get paid on time.

If you had a part-time job while studying, you should hand your P45 from your previous employer to your new company. If this is your very first job, or you do not have a P45, you will need to fill out a New Starter Checklist (formerly known as a P46). This form helps HMRC assign you the correct tax code. If you fail to complete this, you might be placed on an emergency tax code, which means you will pay more tax than necessary until the issue is resolved. If you are still applying for roles, you can track your progress using our dashboard.

Understanding Your Graduate Starting Salary and Taxes

Seeing your first annual salary written on a contract is an exciting moment. However, the number on your contract is your gross pay, which is very different from your net pay—the actual money that lands in your bank account each month.

Your take-home pay is calculated after deductions for Income Tax, National Insurance, student loan repayments, and pension contributions. For the 2025/2026 tax year, the standard Personal Allowance is £12,570. You do not pay Income Tax on earnings up to this amount. Any earnings between £12,571 and £50,270 are taxed at the basic rate of 20%. You will also pay Class 1 National Insurance contributions on your earnings.

Worked Example: Calculating Your Take-Home Pay

Imagine you secure a graduate job with a starting salary of £30,000 per year.

• Personal Allowance: £12,570 (tax-free).
• Taxable Income: £30,000 – £12,570 = £17,430.
• Income Tax (20%): You will pay £3,486 in tax for the year.
• National Insurance: You will pay approximately £1,444 in NI contributions for the year (based on 2025/2026 rates).
• Net Pay Before Other Deductions: £30,000 – £3,486 – £1,444 = £25,070 per year, or roughly £2,089 per month.

To get a precise view of your monthly income and plan your spending, use our Student Budget Calculator. For more advice on managing your new income, visit our Graduate Money hub.

Managing Student Loan Repayments in Your First Job

Student loan repayments operate like a graduate tax. They are automatically deducted from your salary through the Pay As You Earn (PAYE) system, meaning you never have to manually transfer the money yourself. The amount you repay depends entirely on which repayment plan you are on and how much you earn above a specific threshold.

According to GOV.UK (2026), the Plan 2 repayment threshold for borrowers from England increases to £29,385 from April 2026. If you started your undergraduate course after August 2023, you will be on Plan 5. According to GOV.UK (2026), the Plan 5 repayment threshold is £25,000. For both plans, you repay 9% of everything you earn above your specific threshold.

Worked Example: Plan 2 Student Loan Repayment

Let us say you are on a Plan 2 loan and your salary is £32,000 per year.

• Your Salary: £32,000
• Plan 2 Threshold (from April 2026): £29,385
• Amount Above Threshold: £32,000 – £29,385 = £2,615
• Annual Repayment (9% of £2,615): £235.35
• Monthly Deduction: £19.61

If your income drops below the threshold for any reason, your repayments automatically stop. You can check your exact plan details and track your balance by logging into your Student Finance England account. To run your own numbers based on different starting salaries, try our Student Loan Calculator.

Essential First Job Starter Checklist for Your Finances

Your first month of work is often the hardest financially. You are working full-time, commuting, and buying lunches, but you will not receive your first paycheck until the end of the month. Establishing a solid financial baseline early on is essential.

One of the smartest moves you can make is upgrading your student bank account to a graduate bank account. Student accounts usually come with large 0% overdrafts. If you do not switch to a graduate account, your bank might automatically convert your account to a standard current account, and you will suddenly face massive interest charges on your overdraft balance. Graduate accounts typically offer a tiered 0% overdraft that gradually reduces over two to three years, giving you time to pay off your student debt without incurring fees.

To find the best option for your situation, use our tool to Compare Bank Accounts.

Reviewing Your Employment Contract and Pension

Never sign an employment contract without reading it thoroughly. Your contract dictates your legal rights, your working conditions, and your compensation. If anything seems incorrect, or if verbal promises made during the interview are missing, raise the issue with HR before signing.

Here is a checklist of the exact elements you must verify in your new contract:

• Job title and description: Does it match the role you applied for?
• Salary and payment schedule: Is your gross pay correct, and does it state whether you are paid on the last working day of the month or a specific date?
• Working hours: Check your contracted weekly hours and whether you are expected to work unpaid overtime.
• Holiday entitlement: The UK legal minimum is 28 days (including bank holidays) for a full-time worker. Many graduate schemes offer 25 days plus bank holidays.
• Notice period: How much notice must you give if you want to leave, and how much must they give you? This is often shorter during your probation period.
• Probationary period: Most graduate jobs have a three to six-month probation period where your performance is reviewed before your role becomes permanent.

You will also be automatically enrolled into a workplace pension if you are aged 22 or over and earn more than £10,000 a year. Under auto-enrolment rules, you contribute 5% of your qualifying earnings, and your employer contributes at least 3%. While retirement seems decades away, opting out of your pension means you are literally throwing away free money from your employer. The contributions benefit from tax relief, making it one of the smartest ways to save for your future.

Sorting Out Housing and Relocation for Work

Many graduates relocate to take up their first professional role. Moving to a new city requires careful planning, especially since you will need to pay a rental deposit and your first month of rent before your first payday.

If you are moving, follow these steps to secure your new home:

1. Determine your budget: A general rule is to spend no more than 30% of your gross monthly income on rent. Use our Rent Affordability Calculator to see what you can realistically afford.
2. Research neighbourhoods: Look into commuting times and public transport costs. A cheaper flat might end up costing you more if you have to pay for an expensive daily train ticket.
3. Find flatmates: Sharing a house is the most cost-effective way to live in major cities like London or Manchester. Use platforms designed for young professionals to find like-minded housemates.
4. Prepare your documents: Landlords will ask for proof of employment, your new contract, and a reference from a previous landlord. Having these ready will help you secure a property faster.

Managing shared expenses with new flatmates can be a headache. To avoid arguments over who owes what for the energy and water, use our Bills Splitter Tool to divide everything fairly. You should also shop around for the best internet deals using our Broadband Comparison Tool.

Building Good Habits in Your First Month

Your first few weeks on the job are about absorbing information and building a positive reputation. Arrive on time, dress appropriately for your company’s culture, and do not be afraid to ask questions. Employers expect recent graduates to need guidance. It is much better to ask for clarification than to guess and make a costly mistake.

Take the time to introduce yourself to colleagues outside of your immediate team. Building a strong internal network will help you understand the broader business and can open up opportunities for mentorship. Keep a private document where you record your achievements, positive feedback, and new skills you acquire. This document will be incredibly useful when it is time for your probation review or when you eventually update your CV for your next career move.