Are cracks starting to appear in the
Working Holiday Visa?

If not cracked, then certainly chipped around the edges!  Some agencies won't register people with a Working Holiday Visa (WHV), wanting candidates to have a Tier 1 Highly Skilled Visa (or equivalent).  You can no longer switch from a WHV to a Tier 1 Visa while in the UK.  So for many the WHV is certainly less attractive.

We recommend that if you are heading to the UK and meet the criteria for a Tier 1 Visa that you get it before you go.  It is easier to get before you go and once you get to the UK you will be more employable, will earn more money and can stay longer.

Alternatively, if you wait a few months the WHV will be replaced by the new Tier 5 (Youth Mobility Scheme) Visa.  This new visa will enable you to work for the full duration of the two year validity of this visa, whereas the current WHV restricts you to 52 weeks work over the two years.

Click here to see a comparison of the Highly Skilled Visa and WHV features.

The benefits of the Highly Skilled Visa are:

1. You become more employable
   Getting a Tier 1 Visa shows employers you have initiative and commitment to working in the UK, proving are a highly skilled international candidate – putting you at the top of the selection pile.  An extra £1 an hour soon covers the cost of a visa.
   
   
2. You get more money in the hand
   With a Tier 1 Visa and a contract job paying more than £20 an hour, you can get significant tax savings.  We have a relationship with a UK provider offering a contractor solution that achieves a net pay of 80% of your income.
   
   
3. You will save yourself an airfare home
   The newly introduced ‘Tiered’ immigration system no longer allows you to switch from the WHV (or the Tier 5 Visa) to the Tier 1 Highly Skilled Visa.  You must return home and apply for the Tier 1 Visa.  Not only is this likely to be a great inconvenience to your OE and your career development, you also cannot be certain how long you will need to be home waiting for the visa to be processed.
   
   
4. Get it now while you are younger
   The earlier you apply, the more points you can earn.  Why spend two years on the WHV when the delay can cost you valuable points?
   
   
5. It’s easier to get from New Zealand
   Yes, for once Kiwi's get one over Australia.  If you are based on New Zealand income, you need less money to meet the points criteria, due to a generous multiplier applied to New Zealand sourced income of 2.3.  E.g. The starting income level to earn points based on UK or Australian earnings is £16,000.  However you only need £6,956 if the income is earned in New Zealand.  At current exchange rates that’s about NZD$17,200.
   
   

Click here for a full table of income and point entitlements.

If you are not convinced already, the numbers speak for themselves:

<sup>1. WHV total outlay is an estimate only.  Depending on circumstances this could be up to as much as £4,000.
2. The WHV will be replaced by the Tier 5 Visa in the third quarter of 2008.  No announcement has been made on what this visa will cost.</sup>

Based on the outlay of costs alone, if you are likely to want to work for more than one year (or two years when the Tier 5 Visa kicks in) in the UK then the Tier 1 Visa is a better bet for you.

So if you can, get yourself a Tier 1 Visa – it will pay for itself in no time!

Whose shoes would you rather be in – John or Sally?

Sally and John are very similar.  They are both 27, have Marketing degrees and earning $40,000 and do not have previous UK experience.

Sally decides to go to the UK on a WHV, while John goes on a Tier 1 Visa.  Both get jobs, but John earns £1 per hour more as his employer recognises his ability to continue working after a year. 

• John’s visa and entry clearance cost £600 more, but after one year working he has earned an extra £1,200 in income.
• If they both returned home after one year, John would be £1,000 better off.

If they want to stay and continue working:

• There is no additional cost to John, he can keep on working.
• Sally will need to return home and may need to be back for a few months.  This will cost her £900 for the return flight, not to mention her lost wages!  Sally will also now be a year older and will be applying based on UK income.  She will need to prove a greater level of earnings than required for John.
  
  

To see if you qualify for a Tier 1 Visa, click here.

To speak with one of our experienced UK consultants, please contact us on uk@globalcareerlink.com.