Working in Jersey

wilsojer

I am just about to take up a new job in Jersey working for a global legal services firm. I will be 100% based in Jersey and will be living there. I will only do the odd day back in the London office once or twice a month max. I am being given J-category status.

I have a couple of questions:

1. There is the opportunity that my current employer will pay me through until end of March (although is happy for me to stop working whenever I need to), but my new employer wants me to start in late February. Is it possible (and legal) for me to be employed by my UK employer at the same time as being employed by my Jersey employer, even if that will only be for a month or so ? Will I need to provide P45 or similar to my Jersey employer to demonstrate that I have left my previous job ? Or can I get paid by both parties - taxed in the UK as normal for my current role and taxed in Jersey for that role ?

2. I am divorced and my ex-wife and children are living in the UK. I understand that I will be taxed around 20% on my income in Jersey. What are the tax ramifications for me sending alimony back to my ex-wife in the UK ? Will I get further taxed on that ? If so, what rate would that be taxed ?

I hope those questions make sense - if not, I can provide more detail, as necessary.

Thanks so much to anyone who can help ! Much appreciated !

xylophone

Is it possible (and legal) for me to be employed by my UK employer at the same time as being employed by my Jersey employer, even if that will only be for a month or so ?

Lots of people work for more than one employer. Presumably your current employer will issue a P45 when you officially leave at the end of March.

I should suppose though that if you become resident for tax purposes as soon as you start working in Jersey the information here http://www.gov.je/TaxesMoney/IncomeTax/Individuals/IncomeTaxCircumstances/Pages/Residency.aspx might be of use.
I can't see why you should be taxed again on money you pay from your taxed income to your ex wife?

Might there even be some relief? http://www.gov.je/TaxesMoney/IncomeTax/Individuals/IncomeTaxCircumstances/Pages/ChangesCircumstancesTax.aspx

I shouldn't think you'd have any difficulty in finding a tax accountant in Jersey to advise....:D

wilsojer

Xylophone,

Thanks so much for your message. And thanks for the useful links. I think for the matter of a month, I'm not going to get into any real trouble, so will just do that.

And I agree with you that, why should I be taxed twice on the same income. However, HMRC are not know for their fairness and reasonable outlook !

My firm has offered to give me a tax accountant, so I'll check with them when I get out there - I just wanted to get some advice before getting there.

Thanks again,

Jeremy

jimmo

As I understand it, Jersey is independent of the UK for tax matters. So much so that there is a double taxation agreement in force.

http://www.hmrc.gov.uk/manuals/intmanual/INTM355215.htm

In that context your P45 is a meaningless piece of paper and you need to concentrate on whether you are emigrating permanently to Jersey and will become non-resident in the UK from the date of your departure or you will end up being dually resident.

Without knowing all the facts, a clean break, on or before the date you emigrate, would probably be the simplest solution