I have a jpg image as a layer in QGIS but want to clip it to get rid of the white background is this possible? As it is not a raster file, when I convert it to a raster it losses its image quality!
If you only want to get rid of the white background, you could add a NoData Value to your JPEG image (Layer properties - transparency - No Data Value) or set custom transparency (Layer properties - transparency - Custom Transparency options).
If you want to clip your jpeg, you can usually do it with the regular clip raster tools, if I'm not totally wrong. You just have to make sure that your jpg is georeferenced correctly.
If you want to export your jpeg to a tif without quality loss, I would suggest to use some image processing software (like photoshop or gimp) to export your jpeg to a Tiff, and then to georeference it in QGIS.
Hope this helps!