Record Keeping Regulations

The Guernsey Income Tax Authority updated the Regulations in July 2012 in respect of the records which are required to record any business or economic activity.

These records should be of such a nature that they will act as back up documentation in respect of the income earned and the related expenses incurred from economic activities, and the tax office if necessary should be able to verify the economic activity of the taxpayer from such records.

These records need to be kept for a period of 6 years after the tax return has been submitted, so for a tax return for 2011 submitted in 2012, the records would need to be kept until 2018.

Each business entity will have unique requirements to record economic activity, the items below are some examples of what should be kept:

  • Till rolls or other form of electronic record of sales.
  • Cash book (a summary and analysis of all bank account entries or cash receipts, payments and drawings).
  • Details of ancillary sources of income, such as commissions/bonuses from suppliers, sales of scrap, etc.
  • Records of any goods taken for your own or your family’s personal use.
  • Goods provided in exchange for other goods or services from other traders (“bartering”).
  • Details of cash taken out of the till to pay small business expenses, or for your own or your family’s personal use.
  • Bills/invoices/receipts for purchases and expenses.
  • A record of stock on hand at the end of the year (including work in progress but not completed by the end of the year).
  • All bank and building society statements, passbooks, cheque stubs and paying-in slips that include details of business transactions.
  • Details of any private money introduced into the business.
  • Details of any money taken out of the business bank account for your own or your family’s personal use (whether in cash or by cheque drawn for private purposes).
  • Details of any assets used for both private and business purposes, and the extent of the private and business usage.
  • Wages, bonuses, commissions, etc paid to employees (most of this information may be available in the documentation relating to the Employees Tax Installment (“ETI”) Scheme).
  • Records of work done/services provided to customers/clients (including details of work/services completed but not yet paid for).
  • Copies of sales invoices that you issue.
  • Petty cash book.
  • Contracts entered into with customers/clients.
  • Leases on business assets/premises.
  • Documentation relating to business loans and other forms of financing.

This information is for guidance purposes only and professional help should be obtained if you have any questions.


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