Can I Claim Vehicle and Motor Expenses as a Business Expense in Guernsey?
Partially — vehicle costs used exclusively for business are fully deductible. Mixed personal/business use requires an apportionment. Guernsey has no HMRC-style approved mileage allowance payment scheme; actual costs are used. There is no fuel benefit charge system equivalent to the UK.
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What Revenue Service, States of Guernsey says
Actual vehicle costs attributable to business use are deductible. Where a vehicle is used for both business and personal journeys, the deductible proportion is the business mileage as a fraction of total mileage. No official mileage rate structure applies in Guernsey.
When you can claim
- Company car used exclusively for business (insurance, fuel, servicing, road tax)
- Van or commercial vehicle wholly for business use
- Proportionate car costs where detailed business mileage records are maintained
- Car hire costs for business trips
When you cannot claim
- Personal commuting in a company or personal car
- Full cost of a dual-use car without business proportion evidence
- Fines and parking penalties
Good to know
Pro tip: Keep a mileage log recording date, destination, purpose and business/total miles ratio. Guernsey roads are short — most business use is inherently local. Vehicle benefit in kind rules differ from the UK: consult a local accountant on the specific treatment of cars provided to directors.
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