Partially Claimable

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.

Typical claim: £2,000 – £15,000 per year for a company vehicle; Guernsey fuel prices typically 10-15p per litre higher than UK mainland

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.

Stop guessing what you can claim in Guernsey

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