UK residents temporarily choosing to work from Guernsey - tax position

Tue 23 Feb 2021

We've been getting lots of questions from people who would live in the UK normally, but find themselves working in Guernsey over an extended period due to the global pandemic.  In particular they are wondering what their tax position is. 

States of Guernsey have released an update which addresses this situation and the implications depend to a large degree on the time spent on island although personal and economic ties will also be considered, quote:

If an individual spends more than 90 days in Guernsey in any calendar year, then they are resident for tax purposes in Guernsey. They are required to register with the Revenue Service and file a personal tax return. They may also continue to be tax resident in the UK.

Under the UK-Guernsey Double Taxation Arrangement, a tie-breaker clause will determine their place of residence for the treaty as being where the individual has the closer personal and economic ties, referred to as their "centre of vital interests". If that is the UK, then generally the individual will only be taxable in Guernsey on any Guernsey source income.

We advise anyone who finds themselves in this position or is an any doubt, to read the full article available on the States of Guernsey website. You are also advised to contact the Guernsey Revenue Service if you require further clarification.

Please continue to be vigilant and stay safe under the current lock-down situation.

The Collenette Jones team

Collenette Jones

We are a Guernsey based firm of Chartered and Certified Accountants providing a high level of service to Bailiwick of Guernsey clients. We provide a total suite of accounting, assurance, tax, company formation and administration, payroll, pension and trust services under one roof.

Please contact us for a no obligation discussion of your accounting needs. Discover more about our services and talented local staff team.


Full SoG article:  UK residents temporarily choosing to work from Guernsey during the global pandemic
Accountancy - Guernsey Revenue Service
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