Can I Claim Professional Services (Accountants, Lawyers, Consultants) as a Business Expense in Guernsey?
Yes, fees paid to accountants, lawyers, company secretaries, registered agents and business consultants are deductible provided they relate to the company's trading activities, not capital transactions or personal matters.
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What Revenue Service, States of Guernsey says
Revenue expenditure on professional advice (accountancy, legal, corporate secretarial, consultancy) is deductible under the wholly and exclusively rule. Legal costs related to capital transactions (acquisitions, disposals) or personal matters are not deductible. The Revenue Service guidance treats initial training to start a business as not allowable, while refresher courses and knowledge updates are. A company return is due by 30 November following the year of charge, and a Guernsey accountant normally prepares the accounts behind it.
When you can claim
- Annual accountancy and bookkeeping fees
- Corporate secretary fees (registered office, annual validation filing)
- Legal fees for commercial contracts, employment matters, and debt recovery
- Compliance and regulatory advice (GFSC filings, substance analysis)
- IT and technology consulting for business operations
- HR and payroll bureau services
When you cannot claim
- Legal fees on company acquisitions or disposals of capital assets
- Personal tax advice for shareholders (this is a personal expense)
- Legal costs in defending personal claims not related to the business
- Incorporation costs (capital, though may be amortised in some circumstances)
Good to know
Pro tip: Guernsey does not have complex VAT to worry about, but professional fees still need to be demonstrably for business purposes. Obtain invoices that clearly describe the nature of the service. Split invoices between deductible business work and non-deductible personal or capital work where needed.
Important: Revenue Service staff cannot prepare accounts for you. If you cannot prepare them yourself, you must appoint an accountant, and certified accounts may be requested at any time if the Director considers them necessary. Budget for the accountant's fee in the year you file the first return.
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