Plan contractor hiring in Guernsey

A Guernsey-resident independent contractor normally works as a Class 2 self-employed person when the contractor runs the business independently and remains outside the buyer's control. The contractor pays Guernsey income tax and social insurance directly to Revenue Service and files an annual personal return. That treatment depends on the real working arrangement for this engagement. A foreign buyer should therefore give the contractor control over delivery, preserve genuine commercial risk, and document the service outcome without directing the contractor as staff. The buyer's lack of a Guernsey entity or permanent establishment does not replace the local status analysis for work performed by the resident contractor.

Sources: Revenue Service, Class 1 and Class 2 contribution information, Revenue Service, Understanding income tax

If the line is crossed

A Guernsey employment finding moves the worker into Class 1, while a non-Guernsey payer with no local place of business follows a different administrative route. A business operating in Guernsey must register, run employee tax and social-security deductions, submit electronic returns, and pay each quarter. For a non-Guernsey business with no local place of business, Revenue Service currently states that registration is recommended but not legally required. Revenue cannot enforce the employer contribution share against that payer, although nonpayment can affect the worker's contribution record and benefits. If the company agrees to fund that share, the Guernsey employee may operate payroll and returns under an agreement. Secondary-pensions guidance likewise limits that duty to an employer with a Guernsey place of business and says the same presence question affects normal social-insurance liability.

Sources: Revenue Service, Remote working, States of Guernsey, Secondary Pensions Employer Quick Start Guide

Form 366/CF30

Commencing Self-Employment form

Form 366/CF30 is the individual contractor's notice to Revenue Service that self-employment has begun. It records the business activity, start date, accounting date, and estimated profit, allowing Revenue Service to update income-tax and social-insurance records and calculate interim charges. The current Starting up in Business page directs individuals to this form and excludes limited companies from that workflow. Its download is labelled September 2021 while the form footer is dated 2019, so a contractor should confirm that the linked version remains current when filing. Existing personal tax identifiers do not remove the need to report a new business activity.

Issued by: The self-employed individual submits it to Revenue Service.

Timing: Submit it when the individual starts self-employment or when Revenue Service needs the new business details.

Sources: Revenue Service, Starting up in Business

Interim assessment

An interim assessment is Revenue Service's annual estimate of the self-employed individual's Guernsey income-tax liability. It includes estimated business profit for the year and sets the tax expected on a quarterly basis. Revenue Service also estimates Class 2 contributions until actual earnings figures are available, using the profit estimate supplied at commencement. The contractor should compare each assessment with expected results and follow the stated dates and amounts. The foreign buyer does not issue or file this document, although a clear service agreement and reliable invoice records help the contractor support the business figures used in the assessment.

Issued by: Revenue Service issues it to the self-employed individual.

Timing: Revenue Service issues it each year, and the assessed income tax is payable quarterly on the dates shown.

Sources: Revenue Service, Starting up in Business, Revenue Service, Understanding income tax

Personal tax return

The personal tax return is the Guernsey resident contractor's annual declaration of worldwide income, including profit from self-employment. A person living in, working in, or receiving income from Guernsey is required to complete a return each year. The contractor uses business accounts and retained transaction records to report the final figures, which allow Revenue Service to reconcile earlier estimates. Filing dates are announced for each return year, so the contractor should use the deadline published for the relevant period instead of carrying forward a prior year's date. The foreign buyer should retain its own contract and payment records for reconciliation questions.

Issued by: The Guernsey-resident individual files it with Revenue Service.

Timing: File it annually by the deadline Revenue Service publishes for that return year.

Sources: Revenue Service, Tax return FAQ

A Guernsey contractor's 2026 service invoice supports income-tax records and should not add a current Guernsey GST charge. The official tax-reform package describes a proposed 3% GST from 2028, and the July 2026 FAQ says the States are still considering the proposals. The proposed £300,000 registration threshold therefore does not apply to an invoice issued on 1 September 2026. A self-employed business must keep records of services, copies of sales invoices, and customer contracts. In the ordinary return-filing case, those records remain required for six years after the end of the year in which the relevant income-tax return was submitted. Recheck the GST position before 2028 or earlier legislation.

Sources: States of Guernsey, 2026 Tax Reform Package, States of Guernsey, Tax Reform Package FAQ, Revenue Service, Keeping and Retaining Records for Income Tax Purposes

What an invoice has to show

• The Guernsey company's registered name, when the company is the supplier

  A service invoice issued on behalf of a Guernsey company must display the company's registered name. Companies Law section 35 makes a person who issues an invoice without the company name personally liable for its amount unless the company pays it. This rule matters only when the contracting supplier is an incorporated Guernsey company. It does not establish a corresponding statutory face-of-invoice list for a self-employed individual. The buyer should match the displayed company name to the contracting party and should avoid treating the company's registration number and registered-office rules for formal letters and order forms as broader invoice requirements without separate support.

  Sources: Guernsey Legal Resources, Companies Law section 35

The currency on the invoice

A Guernsey contractor may receive service income in a foreign currency, and Revenue Service requires that income to be reported in pounds sterling. The contractor may use Revenue Service's published annual average rate or the sterling amount calculated at the exchange rate on the transaction date. This is a tax-return conversion rule and does not prescribe the contract's pricing currency. The parties should state the invoice currency, fee, due date, and allocation of conversion differences in the service agreement. The contractor should retain the invoice, receipt record, conversion method, and resulting sterling figure so the amount in the annual return can be reconciled to the underlying transaction.

Sources: Revenue Service, Tax return FAQ

Assuming existing personal identifiers cover a new business

A contractor with an existing TRN and social security number can still miss the separate step of telling Revenue Service that self-employment has started. Without the activity, start date, accounting date, and estimated profit, Revenue Service cannot set the initial business assessment from current information. Its guidance also warns that maximum Class 2 contributions can be charged when estimates are absent. The contractor should submit the current commencing-self-employment form or confirm directly that Revenue Service already holds the required business details. The buyer can make that confirmation an onboarding question without taking over the contractor's personal filing duty.

Sources: Revenue Service, Starting up in Business

Writing independence into the contract while managing the person as staff

A contractor label cannot preserve Class 2 status when the operating facts point toward Guernsey employment. Requiring personal service, imposing fixed hours, directing what is done and when and how it is done, paying only for time, or fixing the work location are employment indicators. The buyer should define deliverables and acceptance criteria while leaving genuine control over method and scheduling with the contractor. Commercial risk, meaningful responsibility for corrections, suitable contractor-owned equipment, and freedom to arrange help should exist in practice where the service permits them. Review each engagement separately because the whole picture, rather than one favorable clause, determines classification.

Sources: States of Guernsey, Employed or Self-Employed leaflet 45

Applying the proposed GST package to a 2026 invoice

A 2026 invoice should not carry Guernsey GST merely because the official reform package describes a 3% tax and a proposed £300,000 registration threshold. The package places implementation in 2028, and the July 2026 FAQ confirms that the States are still considering whether to proceed. Adding the proposed tax early creates an unsupported charge and can distort the agreed service price. For an invoice issued on 1 September 2026, the contractor should follow the current income-tax record rules and retain the invoice and customer contract. Both parties should review enacted legislation and commencement dates before 2028, since the future scope may change from the proposal.

Sources: States of Guernsey, 2026 Tax Reform Package, States of Guernsey, Tax Reform Package FAQ