Chapter 4: Working in Jersey
Jersey’s economy has evolved radically over the past 50 years. From ship-building, textiles, and agriculture exports, Jersey’s booming finance and legal sector is now its main source of income and employment. As one of the world’s leading offshore finance centres, Jersey is home to some of the world’s leading banks, financial institutions, and law firms.
Jersey also continues to prosper and diversify into other areas and has a thriving creative and digital industry with more than 400 businesses employing 2,700 professionals. Jersey’s digital sector saw 28% growth between 2010-2016 and is supported by Digital Jersey who continue to develop a digital hub for innovation and growth on the island.
Jersey’s traditional industries of agriculture – specifically Jersey milk, seafood, and Jersey Royal potatoes – continue to contribute much to the economy, with £28 million exports of potatoes and £13.7 million of milk exported in 2015.
Jersey’s tourism sector continues to be a key sector in its economy, as 2017 saw the highest number of tourists coming to Jersey since 2007 with over 700,000 visitors spending £250m. This allows the island’s hospitality businesses to thrive.
As with housing regulations, those who can work in Jersey fall into four categories – Entitled, Licensed, Entitled to Work, and Registered.
|Residential/ employment status||Definition||Housing||Work|
|Entitled||Someone who has lived in Jersey for 10 years||Can buy, sell or lease any property||Can work anywhere and doesn’t need permission to be employed|
|Licensed||Someone who is an ‘essential employee’||Can buy, sell or lease any property, apart from assisted purchase or social rented housing, in their own name if they keep their ‘licensed’ status||Employer needs permission to employ a ‘licensed’ person|
|Entitled For Work||Someone who has lived in Jersey for five consecutive years immediately before the date the card is issued, or is married to someone who is ‘entitled’, ‘licensed’, or ‘entitled for work ‘||Can buy property jointly with an ‘entitled’ spouse / civil partner. Can lease ‘registered’ (previously ‘unqualified’) property as a main place of residence.||Can work anywhere and doesn’t need permission to be employed|
|Registered||Someone who does not qualify under the other categories||Can lease ‘registered’ property as a main place of residence||Employer needs permission to employ a ‘registered’ person|
Under the Control of Housing and Work Law, those coming to live and work in Jersey need a Registration Card in order to buy or rent property, reside on the island for longer than 3 months, and start working on the island.
To obtain a registration card the intended holder should present themselves at the Social Security Office in St Helier with photo ID for Registered residents and a signed letter from the company who will be employing them for Licensed residents.
Jersey’s social security scheme are payments that everyone living in Jersey who is over 16 and working and between 18 and pension age must make by law that go towards health services and a range of benefits including sickness pay, maternity benefit, home carers allowance, old age pension, and incapacity allowance.
Contributions are paid by your employer based on your earnings and by you. If you don’t pay you could be prosecuted by law. Depending on your circumstances you may qualify for Small Income Exception or Contribution Credits to help you pay your social security.
Class 1 contributions are paid through your wages by your employer. Class 2 contributions are paid every quarter by you. Employees pay 6% of their earnings and employers pay a contribution of 6.5% which is paid directly to the Social Security Department. Self employed and non employed pay 12.5% of their gross income and the level of contribution varies depending on your circumstances.
Tax in Jersey
As a self-governing dependency, Jersey has its own tax system that meets OECD standards.
Income tax in Jersey varies on a case-by-case basis but is generally lower than that of the UK and many additional taxes (such as capital gains tax and inheritance tax) aren’t chargeable in Jersey, for full details of income tax, allowances and relief, please visit the gov.je website.
Company Tax rates are as follows:
- 0% – corporate tax rate applicable to most companies
- 10% – rate for banking, insurance, finance, fiduciary companies
- 20% – rate for utility and property income companies
If moving to Jersey, you need to register with the Jersey Income Tax Department and all residents must file an annual tax return.