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. Vehicles are capital items, so the purchase price is covered by annual wear and tear allowances rather than a direct deduction. From 2026 the motor vehicle benefit for a car available for private use is calculated at 20% of the cost of the car, replacing the old banding, while a limited benefit charge applies where use is travel to and from work only, business use is more than 75% or it is a pool car.
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 to total miles ratio. Guernsey roads are short, so most business use is inherently local. Check the benefit in kind guide for 2026 before a car is provided to a director, because the calculation changed on 1 January 2026.
Important: A car that is also the family car needs an adjustment, because the Revenue Service allows vehicle costs for business use only. The limited benefit charge for a car increases by 3% each year for 2026 to 2028.
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