No receipt, no reliable claim
Jersey businesses must keep accounting records, including supporting evidence for expenses, for at least six years. Digital records are acceptable, so a clear photo or scan of a receipt is fine — but a claim with no underlying evidence is a claim you cannot properly stand behind.
Every pound a Jersey business spends falls into one of two camps: an allowable expense that reduces the taxable profit, or a cost the business must bear out of taxed income. The difference can be significant over a year, which is why getting your expense claims right is not penny-pinching — it is simply paying the correct amount of tax and no more.
The challenge is that the line between allowable and disallowable is not always obvious, and a great deal of everyday spending sits in a grey area where the answer is genuinely "it depends". This guide explains the underlying principle that governs all of it, sets out the expenses that are usually fine and those that usually are not, describes the evidence you need to keep, and tackles the awkward cases that trip people up most often.
The Wholly and Exclusively Test
Almost every expense decision comes back to a single principle: to be allowable, a cost must be incurred wholly and exclusively for the purposes of the business. If the spending genuinely and solely serves the trade, it is generally deductible. If it serves a personal purpose, or mixes business and personal benefit, it becomes problematic.
Ask one honest question of every cost.
Would I have spent this money if I were not running the business? If the answer is a clear no, it is likely allowable. If you would have spent it anyway as a private individual, it is likely not.
Where a cost has a genuine dual purpose — part business, part personal — the usual approach is to apportion it fairly and claim only the business proportion. A mobile phone used 70% for work and 30% privately, for example, would generally support a 70% claim, provided you can justify the split. Keeping a sensible, consistent basis for any apportionment is essential.
Commonly Allowable Expenses
The following costs are typically allowable for a Jersey business, assuming they are genuinely incurred for the trade and properly evidenced:
- Stock, raw materials and the direct costs of providing your goods or services
- Staff wages, and the employer's Social Security contributions that go with them
- Rent, utilities and insurance for business premises
- Accountancy, bookkeeping, legal and other professional fees for the business
- Business travel, and the running costs of genuine business use of a vehicle
- Marketing, advertising, website and software subscription costs
- Office supplies, tools and equipment used in the business
Note that larger items of equipment may be treated as capital rather than a straightforward running cost, and the way they are relieved against tax can differ. If you are buying significant assets, it is worth checking the correct treatment rather than assuming the full cost is deductible in one year.
Commonly Disallowable Expenses
Equally important is knowing what you generally cannot claim. The table below contrasts costs that are usually allowable with their disallowable counterparts, to show how the wholly-and-exclusively principle plays out in practice.
| Usually Allowable | Usually Disallowable |
|---|---|
| Travel to a client meeting | Your daily commute to your own usual workplace |
| A working lunch with a supplier in limited cases | Ordinary personal meals while working |
| Branded workwear or genuine protective clothing | Everyday clothing, even if worn for work |
| Business proportion of a home office | The full cost of running your home |
| Interest on a genuine business loan | Repaying the capital of that loan |
| Staff training relevant to the current trade | Fines and penalties imposed on the business |
These are general illustrations of the principle, not a definitive ruling. The correct treatment depends on your specific facts — verify with Revenue Jersey at gov.je or a professional adviser.
The Evidence You Must Keep
An expense is only as good as the evidence behind it. For each claim you should be able to show what was bought, when, from whom, how much was paid, and that it related to the business. A good receipt or invoice captures most of this on its own.
A solid evidence trail includes:
The supplier receipt or invoice; the matching bank or card transaction; and, where the purpose is not obvious, a short note explaining the business reason. Together these turn an entry in your books into a claim you can fully justify.
Because Jersey accepts digital records, you do not need to keep a shoebox of fading paper. A clear photograph or scan, stored and backed up, is sufficient and far more durable. Good practice is to:
- Capture each receipt at the moment of purchase, before it is lost or fades
- Keep the evidence for at least the six-year retention period
- Note the business purpose on anything that could look personal
- Pay business costs from the business account so the bank record corroborates the receipt
The Tricky Grey Areas
Most disputes about expenses arise not from outright wrong claims but from honest uncertainty in the middle ground. These are the cases that come up most often, and the sensible way to think about each.
Working from home
If you run part of the business from home, a fair proportion of household running costs can usually be claimed, based on the space used and the time it is used for business. The key is a reasonable, consistent method of apportionment rather than a guess, and keeping a note of how you arrived at the figure. Claiming the whole cost of running your home is not acceptable.
Vehicle and travel costs
Genuine business journeys are claimable, but your ordinary commute generally is not. Where a vehicle is used for both business and private travel, you apportion the running costs to the business share, which means keeping some record of business mileage. Mixing the two without any evidence of the split is the most common cause of difficulty here.
Entertaining and meals
Routine personal meals while working are not allowable simply because you happened to be working. Business entertaining is an area treated cautiously and is often restricted, so it should never be assumed to be fully claimable. When in doubt, keep the receipt and a clear note of who attended and why, and confirm the correct treatment before claiming.
Mixed-use subscriptions and devices
Phones, broadband, software and similar costs frequently serve both business and personal life. The fair approach is to estimate the business proportion honestly, apply it consistently, and be able to explain it. A 100% claim on something you also use heavily in your private life is hard to defend, so resist the temptation.
Modern bookkeeping makes all of this far easier. Digital receipt-capture apps let you photograph a receipt the instant you receive it, attach it to the transaction, and discard the paper — building a complete, searchable evidence trail with almost no effort. It is one of the simplest upgrades a Jersey business can make to its record-keeping.
Frequently Asked Questions
How long do I have to keep my receipts in Jersey?
Jersey businesses must keep their accounting records, including the evidence supporting expense claims, for at least six years. Digital records are acceptable, so a clear scan or photograph of each receipt, properly stored and backed up, satisfies the requirement and is more durable than paper. Always confirm the current retention rules for your circumstances at gov.je.
Can I claim an expense if I have lost the receipt?
A claim is always stronger with the original evidence. If a receipt is genuinely lost, a corroborating record such as the bank or card statement entry, together with a clear note of what the purchase was and why it was for the business, is better than nothing — but it is a fallback, not a substitute. The reliable approach is to capture every receipt digitally at the point of purchase so it is never lost in the first place.
I use my phone and car for both business and personal life — what can I claim?
Where a cost serves both business and private purposes, you generally claim only the business proportion, apportioned on a fair and consistent basis. For a phone that might be the percentage of business use; for a vehicle it is usually based on business mileage. The important thing is to have a reasonable method you can explain, and to apply it consistently rather than claiming the full amount.
Does GST affect how I record my expenses?
Jersey GST has a 5% standard rate, and how it interacts with your purchases depends on whether your business is GST-registered and on the nature of the supply. Recording the GST element correctly matters for your returns, so it is worth setting your bookkeeping up to capture it properly from the start. Verify your specific GST position with Revenue Jersey at gov.je or with a bookkeeper familiar with the local rules.
Important Disclaimer
This article is provided for general informational purposes only and does not constitute formal tax, accounting or legal advice. Whether a specific expense is allowable depends on your individual circumstances and on current rules, which can change. Always verify the position with Revenue Jersey at gov.je or seek professional advice before relying on the guidance above.
From Bookkeeper.je
Make Sure You're Claiming Everything You Should
We help Jersey businesses record expenses correctly, capture receipts digitally, and keep a clean six-year evidence trail — so you claim what you are entitled to without overstepping. Let us set up your record-keeping properly and keep it that way every month.