Hopping over to the Channel Islands for a graduate job? How to make the move

Jersey and Guernsey are both self-governing crown-dependent states, but neither are part of the UK or of the EU. This means they each have their own fiscal and legal systems – which has contributed to their success as financial centres. There has always been an ebb and flow of people in and out of the Islands, and the respective governments have taken measures to manage the demand on resources, balancing economic development with population growth. Migration policy is based on residential status. The regulations are complicated, so it is best to discuss your situation with your prospective employer’s HR department. Many employers are actively recruiting non-residents and will be happy to give you advice.

The general principal in both jurisdictions is similar: there are restrictions on housing for nonresidents but in industries where there are not enough suitably qualified local people, non-residents may be recognised as essential workers and given the right to accommodation.

When you move to the Channel Islands you will find a few differences. For example, you will use the same currency as in the UK (although Jersey and Guernsey produce their own bank notes), you will pay less tax and social security, and you will have to pay to visit a GP.

Making the move to Guernsey

Guernsey is the second largest of the Channel Islands, with a population of around 65,000: the Bailiwick of Guernsey also includes the islands of Sark, Alderney, Herm and Lihou. The right to live in Guernsey is controlled by the Housing Law.

Housing is divided into two sectors. Access to ‘local market’ accommodation (about 90 per cent of property in Guernsey) is controlled by the Housing Department and is only available to qualified residents or people with a valid housing licence. ‘Open market’ accommodation, which tends to be more expensive, is not controlled. Employers can apply for an ‘essential licence’ where there are skills shortages. Each licence is for a specific post and for a fixed period. Everyone who starts work in Guernsey also has to have a ‘Right to Work’ document proving that they are lawfully housed.

Once you’ve been given the all clear to work and live in Guernsey, you can enjoy a whole manner of financial perks. For example:

• Since 1960, individuals have paid income tax at the rate of 20 per cent. There are no higher rates.
• There is no VAT.
• There is no council tax.
• There is no inheritance tax.
• Excise duties are charged on tobacco, beer, wines and spirits and petroleum products, but these are low compared with the UK.
• Items such as cars, household appliances, jewellery and cosmetics are generally cheaper than in the UK.

Keep on driving

If you’re bringing your car with you then you’ll need to re-register it in Guernsey within 48 hours of your arrival.

New residents, who already have a driving licence issued in another jursidiction, including the UK, need to apply to exchange their foreign licence for a Guernsey licence within one year of arriving on the island.

Driving in Guernsey is different: the roads are narrow, there are special rules and not all the signs will be familiar to you. The maximum speed limit on the island is 35mph; in and around the town the speed limit is 25mph.

Making the move to Jersey

The population of Jersey in 2008 was estimated to be around 91,500. With a population density double

that of England, it is not surprising that the government needs to keep this from growing too much. Migration is controlled by housing regulations and also by the Regulation of Undertakings and Development Law, which governs private sector employment. This is key for the finance sector, which accounts for most ‘J category’ employees – those who have been approved by the Housing Committee as ‘essential employees’.

J category licences are issued on a case-by-case basis, currently on application to the Population Office. These allow you to select housing from a larger stock. The other two categories of housing are ‘A-H’  properties, which are available to local residentially qualified people, and ‘1(1)K’ properties, which are for ‘high value residents’ – the very wealthy. J category licences are usually granted for an initial five years: you need to be resident for ten years to attain qualified status.

Be right on the money

Jersey has an international reputation as a well regulated low tax haven. The island is currently moving through a period of fiscal reform so make sure you’re in the know.

• At the end of 2006 the States agreed to phase out certain tax allowances for taxpayers on higher incomes. This has led to a series of ‘20 per cent means 20 per cent’ measures being introduced over a five year period (starting in 2007).
• There’s no VAT in Jersey.
• In May 2008, a Goods and Services Tax (GST) was introduced at three per cent. What does this mean for you if you’re moving to Jersey? As long as your normal place of residence has been, for a continuous period of at least 12 months, outside Jersey, any personal property, other than alcohol and tobacco products, which you or your family have owned for six months or more will not be liable to GST on the condition that you do not get rid of them in Jersey for a year after you arrive.

Some motoring practicalities

If you’re bringing your car, you’ll need to register the vehicle with the Driver and Vehicle Standards Department as soon as you can after you arrive. The maximum speed limit throughout the entire island is 40mph. Jersey’s government issues its own internationally recognised driving licences and is responsible for its own vehicle registration, employing a distinct numbering and lettering scheme entirely different from that in use in the United Kingdom.