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.
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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