Gg Payroll Social Insurance

---
name: gg-payroll-social-insurance
description: "Prepare ordinary 2026 Class 1 payroll and Class 2/Class 3 contribution working papers, including current-year income bases, mixed employment/self-employment, assessment certificates and reassessments. Includes ordinary benefit valuation, vehicle and housing scales, and ETI reporting. Exact threshold, rounding and discretionary partial-year outcomes remain subject to the stated limits. This source-cited draft supports preparation of reviewable working papers using the stated periods, evidence requirements and computation examples. Retain source evidence and effective dates; unresolved points and professional review remain explicit. Use the linked official materials when checking a case, and obtain a qualified local review before filing or making a payment. Read the explicit exclusions before applying its calculations to different facts."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/gg-payroll-social-insurance"
  jurisdiction: "GG"
  tax_year: "2026"
  last_updated: "2026-11-01"
---

# Guernsey payroll and social contributions v0.11

> **Source-cited draft.** Professional review is pending. Figures are limited to the periods and assumptions below. This Guide prepares working papers; it is not authority to file or pay.

## Who this applies to

Prepare ordinary 2026 Class 1 payroll and Class 2/Class 3 contribution working papers, including current-year income bases, mixed employment/self-employment, assessment certificates and reassessments. Includes ordinary benefit valuation, vehicle and housing scales, and ETI reporting. Exact threshold, rounding and discretionary partial-year outcomes remain subject to the stated limits.

Sources were accessed on 22 October 2026. A dated rate table controls its stated period; an undated guidance page does not prove that all later amendments have been incorporated.

## Rates, bands and thresholds

The operative Revenue Service leaflet, effective **1 January 2026**, states:

| Class | Rate | Lower earnings limit | Upper earnings limit |
|---|---:|---:|---:|
| Employee, Class 1 | 7.5% | £192/week or £832/month | £3,780/week or £16,380/month |
| Employer, Class 1 | 7.1% | Same | Same |
| Self-employed, Class 2 | 12.4% | £9,984/year | £196,560/year |

[Benefit Payment & Contribution Rates 2026, pp19–20](https://gov.gg/CHttpHandler.ashx?id=102818&p=0). The lower limit is a liability threshold, not a deductible allowance. Confirm age, class, period and exception before applying this table.

## The base and ordinary computation

For an ordinary full month at earnings above the lower limit, apply the Class 1 rates to gross earnings capped at £16,380. Employee contributions reduce net pay; the employer share is an additional cost.

- £3,000 gross: employee £225; employer £213; gross plus employer SI £3,213, before pensions and other costs.
- £20,000 gross: capped base £16,380; employee £1,228.50; employer £1,162.98.
- At £832, rates apply to the whole qualifying base: £62.40 employee and £59.07 employer after rounding to pennies. Do not calculate only on earnings above £832.
- For pay below the limit, a partial period or multiple employers, obtain the applicable classification instructions before assigning zero or pro-rating a cap.

## Classification, distributions and special earnings

### Classification before calculation

The Revenue Service describes the scheme as covering Guernsey, Alderney, Herm and Jethou, generally above school-leaving age. Class 1 covers employment; Class 2 self-employment; Class 3 non-employment. Do not infer a Class 3 assessment from the Class 1 earnings formula. [Contribution guidance](https://gov.gg/SScontributions).

For construction labour-only contracts, the guidance requires employed classification, including workers not under an ordinary contract of service. Identify the contracting party, labour supplier or agency that is the employer. Substantial materials proportionate to the contract distinguish the self-employed case; supplying tools or negligible materials does not. A worker can have employed labour-only contracts and separate self-employed contracts. The guidance excludes a private householder engaging the worker in their own home from these classification regulations. Keep contract-by-contract evidence. [Contribution guidance, labour-only sections](https://gov.gg/SScontributions).

Controlling employee-directors became employed for contributions on **1 January 2025**. A historic election allowed a further five years of self-employed classification; obtain the election and Revenue Service confirmation rather than treating this as a new 2026 option. The webpage says receipt by 31 December 2024, while SIC1 says prior to that date. The current statutory regulation 5A(4)(b) says **on or before 31 December 2024** and controls that wording conflict. A valid election is irrevocable and covers 2025–2029; after the transition the person is employed unless a different classification actually applies. Retain evidence of compliance with the required form, manner and information as well as timing. [Classification Regulations r5A](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=270319). [Contribution guidance](https://gov.gg/SScontributions); [SIC1, introduction](https://gov.gg/CHttpHandler.ashx?id=196680&p=0).

Self-employed individuals are assessed at the maximum unless they apply for assessment on earnings. Do not replace an issued assessment with a self-calculated lower payment without resolving that application. [Class 2 guidance](https://gov.gg/SScontributions).

For commencing self-employment, the currently linked **Form 366/CF30 (2020)** requests the start/cessation dates, full/part-time status, continuing employment, first accounts date and estimated profit/earnings for twelve months, with a separate first-part-year estimate where materially different. Completing it accepts an estimated-profit contribution assessment until the actual Income Tax figure is available; the actual figure then replaces the estimate and Revenue Service issues the difference as a bill or refund. Reconcile business profit using the [individual Guide’s source/base method](gg-individual-income-tax.md#determine-the-income-before-applying-allowances), but do not treat the personal income-tax allowance as a Class 2 deduction or decide mixed-class adjustments from that cross-reference alone. Retain the interim/final contribution assessments and payments. **The form’s historic June/December income-tax dates are obsolete for 2026**; use current section 81’s quarterly assessment method in the income Guide. [Form 366/CF30, both pages](https://gov.gg/CHttpHandler.ashx?id=101485&p=0); [Income Tax Law s81](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253819).

### Class 3: classification and application before payment

Non-employed classification includes specified low-paid employees, unpaid workers, people between jobs and part-time self-employed people below the annual lower earnings limit. Confirm class rather than assuming no contribution obligation from low wages. Apply for income-related assessment where appropriate; without an application, the published guidance charges the maximum. Pension-age health/long-term-care contributions remain distinct from social insurance. [Class 3 guidance](https://gov.gg/non-employedcontributions).

The exemption test uses income **before** the non-employed allowance. Only after testing that lower limit is the allowance subtracted to calculate liability. Do not deduct the allowance first to create an exemption. The guidance also distinguishes special-rate, voluntary and overseas-voluntary contributions; eligibility for those routes requires separate review. [Class 3 guidance](https://gov.gg/non-employedcontributions).

| 2026 Class 3 item | Under pension age | Over pension age |
|---|---:|---:|
| Rate | 11.8% | 3.8% |
| Annual lower income limit | £24,960 | £24,960 |
| Annual upper income limit | £196,560 | £196,560 |
| Non-employed allowance | £11,122 | £11,122 |
| Weekly maximum | £420.80 | £135.51 |
| Weekly minimum unless exempt | £31.40 | £10.11 |

[Monetary Values 2026 V2, page 6](https://gov.gg/CHttpHandler.ashx?id=185595&p=0). The classification webpage still mentions historical rate years; use the 2026 table for these amounts. The statutory base, mixed Class 1/2 and partial-period methods below supplement this table; the table alone does not decide classification or an exemption.

The current **CF130b (01/26), under pension age**, and **CF130a (01/26), over pension age**, applications require an estimate for the relevant year pending its final tax assessment. They separately ask for employment/self-employment earnings, occupational pension and other sources such as personal pensions, rent and bank interest; the over-age form separately asks for Guernsey States’ pension and post-pension-age earnings. Both require disclosure of a beneficial interest in a Guernsey investment company receiving Guernsey rent, including company, shareholding and estimated rent. These are information requirements, not proof that every requested amount enters the final base without an exemption or adjustment. Revenue Service issues the interim contribution assessment with quarterly amounts and dates. Keep that notice, the source breakdown and eventual reconciliation; do not substitute the Class 1 monthly formula or tax personal allowance. [CF130b, all three pages](https://gov.gg/CHttpHandler.ashx?id=197037&p=0); [CF130a, all three pages](https://gov.gg/CHttpHandler.ashx?id=197038&p=0).

**Boundary working paper:** assuming accepted income-related assessment, under-pension-age Class 3 status and verified assessable income, £24,959 is below the £24,960 exemption threshold. At £24,960 the below-limit exemption is not established: the calculation base after £11,122 allowance is £13,838. Multiplying by 11.8% gives £1,632.884 as annual-rate arithmetic, not a payment demand. The official weekly minimum is £31.40; reconcile the assessed weeks and rounding to Revenue Service's notice rather than paying a self-generated annual figure. [Exemption and allowance](https://gov.gg/non-employedcontributions); [2026 table](https://gov.gg/CHttpHandler.ashx?id=185595&p=0).

[Supplementary regression control retained byte-exact](../../evidence/research/guernsey-2026/original-controls.md).

### Current statutory Class 2 and Class 3 method

Apply these gates in order. The [Social Insurance Law ss1, 6, 8 and Sixth Schedule](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253497), [Classification Regulations r2 and First Schedule Part III](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=270319), and [Contributions Regulations rr10–11, 37–41](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646) control the method. The current consolidations are research aids without authoritative legal effect; authentic enactments control.

1. **Build the contribution-period record.** A contribution year is 1 January–31 December. Its contribution weeks begin on 1 January and every seventh day thereafter; the final eight days, or nine in a leap year, form the last contribution week. Do not substitute Monday-based benefit weeks or divide days by seven. Unless a regulation changes the result, any employment in the relevant weekly/monthly pay period gives employed status; self-employment in any part of a contribution week without employment gives self-employed status; a week with neither gives non-employed status. Check the simultaneous-class rule below before applying that ordinary priority. Pension age is treated as reached at the end of its weekly Class 2/3 period, or the appropriate weekly/monthly Class 1 period. Class 2 stops after pension age, while regulation 41 imposes the prescribed Class 3 liability on an employed or self-employed person of pensionable age. [Law ss1(5), 10 and Sixth Schedule](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253497); [Contributions Regulations rr40–41](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646).
2. **Apply the full-time/part-time low-profit gate.** First Schedule Part III paragraph 9 treats the stated low-earnings self-employment as non-employed where an earnings-related Class 2 application has been made and its calculated weekly contribution is below the Class 2 rate times the lower weekly earnings limit. Its column B expressly excepts someone engaged **full-time** in those activities. For the retained full-time Class 2 case, regulation 11(3) sets the certificate at the Class 2 rate times the lower weekly earnings limit; the 2026 authority table publishes **£23.81 weekly**. The £9,984 annual lower limit is not a deduction from profits. Do not turn a full-time loss/low-profit business into a zero contribution or disregard a part-time person's other Class 3 income. [Classification Schedule III paragraph 9](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=270319); [Contributions Regulations r11(3)](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646); [2026 leaflet p20](https://gov.gg/CHttpHandler.ashx?id=102818&p=0).
3. **Reconcile current-year relevant income, before personal allowances.** Regulation 10(3)(e) uses the same calendar year for 2021 onward, not the former two-year lag. Match the actual tax-assessed sources and retain any authority determination that substitutes another amount under paragraph (vi). The historical new-business deeming in paragraph (iv) expressly applies before 2021; it does not establish an automatic 2026 annualisation. [Contributions Regulations r10](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646); [Circular 13 of 9 September 2020](https://gov.gg/CHttpHandler.ashx?id=130411&p=0).

| Classification established first | Relevant income for 2026 | Weekly calculation after its gates |
|---|---|---|
| Ordinary self-employed, outside the special company/share-fisherman limbs | Earned income included in current-year assessable income, excluding income from employment under a contract of service: r10(3)(e)(iii)(dd). Reconcile the business base in the income Guide. The incorporated earned-income definition also includes specified office income, past-service pensions/allowances and benefits to the extent in assessable income; do not replace it universally with turnover or business profit alone. | With an accepted reduced-rate certificate, relevant income × 12.4% ÷ 52, subject to the low-profit classification/floor and mixed-class ceiling. Without the required accepted reduction, Law s6 starts from £196,560 × 12.4% ÷ 52 = **£468.72 per liable week**. |
| Self-employed principal shareholder within r10(3)(e)(ii)(cc) | All current-year assessable income arising from that body corporate, not salary alone. First establish that the person is still self-employed under the actual director transition/election; the limb does not undo ordinary 2025-onward Class 1 classification. | The same certificate/rate method, using the correct company-income base. |
| Non-employed or deemed non-employed, including applicable pension-age cases | All current-year assessable income, excluding income derived from employment, whether under a contract of service or otherwise, **on which contributions have been paid by or on behalf of that person**: r10(3)(e)(v)(dd). Reconcile pension, interest, rent and business sources separately. Low wages are not excluded merely because they are wages. | First run regulation 38's exception tests. With an accepted income-related certificate and no exception, (relevant income − **£11,122**) × **11.8%** below pension age or **3.8%** at pensionable age ÷ 52. Without an accepted reduction the formula uses the £196,560 upper limit instead. |

Sources: [Contributions Regulations r10(2)–(3)](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646); [Income Tax Law ss148(1), 209, and source/base provisions](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253819); [2025 Rates Ordinance ss1–6, 13, contribution provisions in force 1 January 2026](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=262506). No income-tax personal allowance is imported into either contribution base. The Class 3 allowance is the separately prescribed £11,122.

**Class 3 exception screen must precede the formula.** Regulation 38(1) excepts relevant income below £24,960, subject to timely requested information and the authority being satisfied; notify a change affecting liability without delay. Paragraph (6) provides specified sick-pay and authority-approved disregards. Paragraph (7) also addresses income exceeding the limit by no more than the annual contribution that would otherwise be payable. Therefore the earlier £24,959/£24,960 arithmetic illustration is not a complete liability decision: do not assume every amount above £24,960 creates a bill. Prepare the paragraph (7) comparison and obtain the actual exception/assessment outcome; the exact-threshold interaction of the paragraph (1) “less than” test and paragraphs (6)–(7)'s “not exceeding” deeming is retained as an unresolved boundary. At £37,122, absent disregards, excess over the limit is £12,162 and the under-age formula produces £3,068 for 52 weeks, so that particular small-excess condition is not met. [Contributions Regulations r38](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646).

**Simultaneous employment and self-employment.** Classification regulation 2(1)(d) applies where the person is employed and would also be self-employed in the same contribution week, employment earnings are below the annual upper limit, and relevant self-employed earnings are at least 52 times the lower weekly limit, **£9,984 for 2026**. Notify Revenue Service. Class 1 continues on employment earnings. Contributions regulation 37 limits the Class 2 base so employment plus relevant self-employed earnings do not exceed the annual upper earnings limit, **£196,560**. For an ordinary full-year case within those gates, Class 2 base is `min(relevant self-employed earnings, max(0, 196560 − employment earnings))`; apply 12.4%. Class 2 is calculated annually in arrears and payable on receipt of its account. Do not offset Class 1 employer contributions, give each activity a second annual ceiling, or apply this full-year expression to an unresolved change-of-class period. [Classification Regulations r2(1)(d)](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=270319); [Contributions Regulations r37](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646).

**Reassessments, partial years and refunds.** Start with the class, weekly amount and covered period on the certificate. Regulation 11(1)(b) permits a just-and-equitable smaller reassessment difference where the same class did not apply every week; obtain the direction instead of imposing an automatic day or month fraction. Paragraph (1)(a) does not require repayment or collection of a total difference below **£5**. Keep its two time tests distinct: paragraph (1)(c) requires variation following an income-tax reassessment of income arising not more than six contribution years earlier; paragraph (2)(b)'s post-2020 certificate/refund/additional-payment route refers to a year of charge **less than six years** before assessment/reassessment. Do not turn these into one universal six-year refund promise. Compare amounts already paid with the revised weekly certificate over the actual covered weeks, then apply the authority's partial-year direction and the de minimis rule. [Contributions Regulations r11](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646).

A distinct erroneous-payment claim under regulation 44 must be made in writing: normally within two years of timely payment; if paid late, by the later of two years from the due date and twelve months from actual payment, subject to an allowed extension. Regulation 43 permits allocation to the correct liability first; regulation 44 deducts specified benefits and unpaid contributions and identifies whether the insured person or employer receives the refund. Primary Class 1 annual overpayments have their own regulation 7 rule: annual maximum is **£14,742** (52 × £3,780 × 7.5%); an excess above £1 is returned, subject to allocation to unpaid contributions. Do not reduce each employer's payroll deductions using an anticipated annual refund. [Contributions Regulations rr7, 43–44](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646).

**Worked contribution working papers.** These are actual gated statutory methods, with amounts chosen to avoid an unverified penny-rounding convention. An income-related Class 2 certificate for ordinary current-year relevant income £52,000 gives £124 weekly and £6,448 for 52 liable weeks. If the same full-year contributor also has £144,560 employment earnings and £60,000 relevant self-employment earnings, and the simultaneous-class gates hold, the remaining annual headroom is £52,000, so Class 2 is £6,448 rather than £7,440 on the whole £60,000. Class 1 remains separate.

For established Class 3 status, accepted current-year relevant income £37,122 and no regulation 38 exception/disregard, the post-allowance base is £26,000. Under pension age the certificate formula gives £59 weekly and £3,068 over 52 weeks; at pensionable age it gives £19 weekly and £988. For an accepted period of 26 contribution weeks at the same £59 weekly certificate amount, the period calculation is £1,534; that does not establish a certificate rate for someone merely earning the stated income over six months, or override a regulation 11 partial-year adjustment. If a Class 2 certificate changes from £124 to £186 for 52 covered weeks following a timely relevant-income reassessment from £52,000 to £78,000, the additional amount is £3,224 before any applicable authority direction. [Recomputing supplementary controls](../../evidence/research/guernsey-2026/ordinary-completion-2026-10-28/contribution-controls.md) retain these calculations without adding main Guide blocks.

### Dividends and qualifying loans

Employee dividends from the employer private company or an associated company enter contribution earnings. SIC1 distinguishes payment in the ordinary week/month from apportionment: the dividend is paid less frequently than wages, normal wages are below the upper limit, and adding the dividend crosses that limit. For dividends declared from **1 January 2025**, Revenue Service interprets the allocation periods as those of the **calendar year of declaration**, not the company's financial period. Report the dividend and estimated annual earnings to the Compliance Inspectors; provisional calculations are revised where necessary with the quarter-four return. SIC1 also identifies an anti-avoidance power under regulation 9. [SIC1, clarification, published 22 December 2025](https://gov.gg/CHttpHandler.ashx?id=196680&p=0).

Loans require a separate qualifying-loan analysis. The Revenue Service describes low/interest-free loans or advances by a company with income taxed below 20% to a participator or associate, contribution liability when the loan qualifies, allocation when the relevant upper limit is exceeded, and a claim for repayment of tax/contributions on amounts repaid within six years. Do not treat every director loan as qualifying or every repayment as an automatic payroll credit. Confirm the qualifying date, classification, allocation and claim with the source rules. [Contribution guidance, loans](https://gov.gg/SScontributions).

### Pension-age change

Employee Class 1 contributions stop from the **week or month following pension age**; employer Class 1 continues. The employer must change the employee from full-rate blue to employer-only orange status. The 2026 leaflet sets the employer-only rate at **7.1%**. This does not establish exemption from tax or another class of contributions. [Employer Guide, p9](https://gov.gg/CHttpHandler.ashx?id=175677&p=0); [2026 leaflet, p19](https://gov.gg/CHttpHandler.ashx?id=102818&p=0).

### Benefits: classification and valuation before payroll

The Revenue Service's **2026 Benefits in Kind Guide** covers employment-related non-cash benefits received by the employee or family, including from a third party because of the job. A benefit merely being available can be taxable; an offer refused or disclaimed so it is not received is different. The guide is administrative guidance and expressly does not replace the legislation. [Sections 1, 2 and 5](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

Use this sequence for each item:

1. Identify the benefit, recipient, employment connection, provision dates, ownership and any employee reimbursement. Distinguish a cash allowance from an actual business-expense reimbursement; do not apply the non-cash exemption to ordinary cash remuneration. [Section 4 closing paragraph; SoP E13](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).
2. Test a specific exemption and retain its conditions. Group medical-cost cover differs from an individual policy and from critical-illness cover. The narrow individual-policy concession requires an ongoing serious condition that would lose cover on switching to the employer scheme, with supporting information. [Sections 4.23 and 5.10–5.11; SoP E46](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).
3. Select the valuation rule below before applying any exemption. Employee contributions generally reduce the benefit, subject to the particular category's rules. Do not treat every employee-paid cost as a contribution to the benefit. [Sections 6 and 12](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).
4. Track the **£900 exemption for eligible benefits**, not separately for each item. It excludes benefits valued under the benefit regulations, including vehicles/accommodation, and share-option/share-award emoluments. SoP E12 also excludes specified relief-eligible payments and allowed payments on behalf of controlling directors. Establish eligibility before applying the balance. The statutory annual aggregate and reconciliation below apply across the employee’s eligible benefits; current employer-specific withholding directions remain separate. [Section 4.1; SoP E12](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).
5. Include the taxable benefit in gross pay in the relevant period and calculate ETI, contributions and secondary pensions using their applicable rules and limits. The benefit value is an income addition, not the tax itself. An ongoing benefit is processed monthly; a one-off benefit is included when provided. [Sections 8–9](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

| Benefit type | Guidance valuation | Important boundary |
|---|---|---|
| Use of property without ownership transfer | Generally 20% of market value at the year's start or later first availability | Special vehicle/accommodation rules and Director-agreed reductions require separate treatment |
| Transfer of a non-stock item | Market value at transfer | Check specific practice exceptions; do not apply this universally |
| Transfer of employer trading stock | Employer's acquisition cost | Employee payment reduces the resulting benefit; retail discount alone is not the base |
| Employer's ordinary customer service/advice | Average cost to employer | Not automatically the customer selling price |
| Other benefit | Cost to provider | Establish actual cost and any special rule |

Sources: [sections 6–7 and example 1](https://gov.gg/CHttpHandler.ashx?id=202739&p=0). One specific exception is the guidance treatment of transferred mobile phones/IT equipment and associated desks/chairs at **20% of market value** under SoP E35. Where the employer retains ownership and use is solely for duties, that practice states no benefit; additional services with private use require cost apportionment. Do not extend that exception to every asset gift. [SoP E35](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

**Employer-paid tax:** SoP E4 requires the tax reimbursement itself to enter taxable pay. Its 20% example grosses up the established taxable benefit using **1.25**, and the employer reimburses the employee while operating ETI normally. This is an income-tax calculation, not a promise that the employer has also covered employee contributions. [SoP E4, p19](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

**Homeworking:** where the employer requires homeworking, the practice permits up to **£8 per week**, proportionately reduced for less than a week, without tax. Above that amount, the guidance requires the sums to be returned through ETI and the employee to claim expenses on their return. If homeworking is a choice, the full subsidy is taxable. Do not tax only the excess over £8 or infer an automatic £8 deduction. [SoP E48](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

### Employer vehicles: choose the category first

Apply Fact Sheet 1's exemption tests before valuing a vehicle. Business-only use is exempt. Its second exemption includes business use and commuting where the vehicle is required for work outside normal employer hours, such as call-outs or going directly on site. Ordinary commuting alone does not meet that second test. Retain use records. [Fact Sheet 1, section 1](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

For non-exempt use, the **limited benefit** category covers cars with private use confined to commuting, cars with **more than 75%** business use, qualifying pool cars, and other motor vehicles available privately. Within that category the 2026 annual benefit is **£1,565 for cars**, and **nil for motorcycles, vans, lorries and other commercial vehicles**. A qualifying pool car must be available to and used by multiple employees, not used by one to the exclusion of others, with private use secondary to business use; calling a car a pool car is not sufficient. Commercial vehicles are defined by their main design for carrying goods/business items. [Fact Sheet 1, sections 2.1 and 4](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

Other non-exempt car use has a 2026 annual benefit of **20% of cost**. Cost is gross acquisition cost including extras, without deducting a trade-in. For a leased car use the purchase-equivalent amount in the Director's opinion. The published example deducts the employee's contribution to extras from the resulting cost basis; retain that contribution evidence. These figures are benefit values, not percentages of tax due. [Fact Sheet 1, sections 2.2 and 4](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

The scale covers fuel and other running costs even where the employer pays only some of them. Employee payment for private fuel is not itself a deductible reimbursement against the car benefit. For the **limited-charge** case, the Director accepts no taxable benefit where the employer certifies a record of all private mileage and the employee reimburses at least **77p per mile**, even if total reimbursement is below £1,565. Do not apply that concession to an ordinary 20%-of-cost car. [Fact Sheet 1, sections 2–3; SoP E18 and E20](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

An employee using their **own** vehicle on business is a separate rule. SoP E17 gives 2026 accepted mileage rates of **77p for an ordinary car, 69.6p hybrid, 59.6p electric, 38.5p motorcycle, 17p e-bike and 12p pedal bicycle** per mile. Keep business-mileage and vehicle-type evidence; this is not the private-mileage reimbursement test for an employer car. [SoP E17](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

### The £900 annual aggregate: reconcile benefits from all sources

Sections 1 and 2(1)(v) of the [Exemption of Benefits Ordinance 1995](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=263414) leave out the first **£900 in any year of the aggregate of eligible benefits to an employee**, after benefits exempt under other limbs have been excluded. The authentic [2022 No.3 Ordinance, sections 12 and 14](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=263409) sets £900 from **1 January 2023**. This is not £900 separately for each item or employer. Benefits valued under section 8(2)(b) regulations are expressly excluded from that relief; retain the E12 category restrictions above. Do not use an ordinary cash allowance, car or housing amount to consume this eligible-benefit balance.

For the employee's annual working paper, combine established eligible values from each employer and any other employment-connected source, remove amounts exempt for another reason, and deduct at most one £900 balance. Reconcile exemption already used in payroll rather than granting it again on the personal return. For established eligible benefits of £1,200 from A and £600 from B, the aggregate is £1,800 and the annual taxable benefit is **£900**. If A's payroll used £900 and B's used £600, those payroll records deducted £1,500 in total; the annual working paper needs a **£600 taxable-benefit increase**, not another exemption. This illustration computes the benefit base, not a final ETI deduction or tax rate. [Ordinance s2(1)(v)](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=263414); [benefit declaration responsibilities, Guide sections 2 and 9/E12](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

Keep each employer's benefit statement, category, provision dates and exemption used, together with the employee's other benefits. The annual aggregate rule does not prescribe which employer receives the withholding allowance. Use the actual coding/direction and correction procedures below; do not refund tax through payroll or alter a notice merely because this annual reconciliation shows a difference. Current employer-specific allocation instructions remain unconfirmed. [Employer notice/correction guidance](https://gov.gg/employers); [Employer Guide, refund restrictions](https://gov.gg/CHttpHandler.ashx?id=175677&p=0).

### Accommodation: identify the employee and type of property

For employees outside the hotel/guesthouse schedule, Fact Sheet 2 values unfurnished accommodation/dwellings or land at **15% of assessable emoluments**, furnished accommodation/dwellings at **17.5%**, and proprietary director/employee accommodation at **open-market rental value**. The latter status includes direct or indirect control of **more than 15%** of shares in the employing company. This is a specific housing classification, not a replacement definition for all director rules. [Fact Sheet 2, sections 1.3 and 2](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

An ordinary non-proprietary employee can elect for the benefit not to exceed a lower open-market rental value. The election must be made within **two years after the end of the relevant year**: for 2026, by **31 December 2028**. Do not automatically choose the lower number without the election. Establish the assessable-emoluments base separately rather than assuming cash salary is always the whole base. [Fact Sheet 2, section 2](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

Employee contributions reduce the housing benefit subject to the detailed rules. Under SoP E24, utilities are separate additional benefits for the percentage/open-market housing category; paying personal utility bills does not reduce the accommodation benefit. The hotel schedule charges under regulations 3(1) and 3(2) include those utilities. [SoP E24](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

For ordinary hotel/guesthouse employees, the 2026 schedule charges **£30 per week or part-week for accommodation** and separately **£30 for food**. It does not add spouses/dependants unless they too are employees. The employed-manager category adds the same charge for the first spouse/dependant; proprietary directors/employees instead require the detailed annual establishment/family schedule. Do not apply the ordinary £30 schedule to everyone. Non-hotel use requires the Director's agreement where Fact Sheet 2 provides for it. [Fact Sheet 2, section 1](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

SoP E28 includes emoluments from other employers when computing a percentage-based benefit. An employer reports on information reasonably available and Revenue Service handles any further recalculation. Where spouses work for the same employer, their own use/emoluments must be considered separately; accommodation is not automatically taxed once for the household. [SoP E28](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

### Salary sacrifice is not an automatic benefit saving

Under SoP E15, deductions from salary for a benefit do not reduce gross emoluments; the employee contribution instead enters the benefit calculation. If salary sacrifice would otherwise produce a lower charge than the salary given up, the stated treatment preserves the tax charge on that salary. Review the contract and both calculations before describing a saving. [SoP E15](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

### Partial periods and remaining special cases

Section 11 supplies a specific ordinary **percentage-based accommodation** method: days the benefit is available divided by days the employee is in Guernsey, multiplied by the percentage benefit based on the actual relevant emoluments. Its example gives furnished accommodation for all 50 days of a new employee's stay, with £3,000 emoluments: `(50 / 50) × £3,000 × 17.5% = £525`. Dividing by 365 instead would incorrectly dilute that particular percentage-of-actual-emoluments calculation. First establish the ordinary furnished-housing category, emoluments, period, qualifying employee contributions and any timely rental-value election. [2026 Benefits Guide section 11, example 5 and Fact Sheet 2](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

For a split-employment housing case under E28, reconcile emoluments from **all employers**, rather than only the accommodation provider. With verified relevant emoluments £30,000 from one job and £10,000 from the provider, full-year furnished ordinary accommodation, no employee contribution and no lower-value election, the percentage method gives `£40,000 × 17.5% = £7,000`, not £1,750 based only on the provider's £10,000. The employer uses information reasonably available, and Revenue Service handles further recalculation; record the disclosure and adjustment route. Spouses employed by the same employer use their own relevant emoluments/use and their own applicable 15%/17.5% calculation and timely rental-value election, as E28 states. This does **not** settle allocation of the separate £900 miscellaneous-benefit exemption across employers. [SoP E28](https://gov.gg/CHttpHandler.ashx?id=202739&p=0); [supplementary controls](../../evidence/research/guernsey-2026/ordinary-completion-2026-10-28/benefit-period-controls.md).

**Use the statutory day-based annual car valuation.** Regulation 5 of the [current 2010 Valuation Regulations](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=267239), confirmed in the [authentic original regulation 5](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=267223), requires annual benefit × available days ÷ **365** for the covered benefits. It excepts regulation 3(1)'s weekly hotel rule and provides the separate days-in-Guernsey denominator for regulation 3(3) percentage housing. The [authentic 2025 amendment, rr2–4 and7](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=265330), sets the 2026 vehicle tables and commencement; it does not replace regulation 5. For an established unrestricted £30,000 car available for 171 days from 1 January through 20 June 2026, the statutory annual benefit is `£30,000 × 20% × 171 / 365 = £2,810.96`.

The Revenue Guide's section 11/example 4 instead combines five £500 monthly entries with `20 / 30 × £500 = £333.33` in June, giving **£2,833.33**. Preserve this guidance conflict explicitly: its monthly illustration exceeds the statutory annual amount by **£22.37**. If £2,500 has already been included, the remaining annual benefit reconciliation is **£310.96**, not £333.33. Use the statutory annual figure in the assessment working paper and reconcile the employer records to it through the actual correction procedure. This calculation is not authority to make a unilateral tax refund, negative ETI deduction or notice change. [Section 11, example 4](https://gov.gg/CHttpHandler.ashx?id=202739&p=0); [original supplementary comparison retained](../../evidence/research/guernsey-2026/ordinary-completion-2026-10-28/benefit-period-controls.md); [new statutory controls](../../evidence/research/guernsey-2026/statutory-gap-closure-2026-10-28/benefit-controls.md).

Complex controlling-employee cases beyond the stated company-deduction gate, share schemes, relocation and preferential loans require their own review. Those specialist limits do not erase the ordinary housing and split-employment methods now supplied.

## Deadlines and filing

Register with the Revenue Service and obtain separate tax and contribution references. Use these in Returns Creator. Coding/direction notices expire on **31 December** and become invalid when the employee leaves. An incorrect coding requires an updated notice; do not invent a replacement allowance. Without a coding notice, the employer guidance requires deduction on gross pay after approved pension payments. [Employer webpage](https://gov.gg/employers).

The ordinary quarterly return/payment deadlines are **15 April, 15 July, 15 October and 15 January**. Thus quarter four of 2026 ordinarily falls due on **15 January 2027**. The Employer Guide distinguishes employers with **more than 80 staff**, who pay deductions weekly or monthly while still returning quarterly. Establish the employer's payment arrangement; the quarterly return date is not universal permission to hold deductions until then. [Employer webpage](https://gov.gg/employers); [Employer Guide, p16](https://gov.gg/CHttpHandler.ashx?id=175677&p=0).

- Submit electronically using Returns Creator or supported payroll software. Before a replacement return, check whether the original has been processed.
- A no-pay quarter still requires a return or email notification. If employment ceases, notify employer references and final pay date; the guide then removes the nil-return requirement.
- For an incorrect return, send corrected details promptly. The employer webpage requests employer references, employee tax reference, corrected gross pay, pension amount where needed, and quarterly tax deductions. Retain the correction and response.
- Keep wage and deduction records for **six years after the end of the year in which the relevant return was submitted**, not simply six years after payday.

Sources: [Employer Guide, pp16–17](https://gov.gg/CHttpHandler.ashx?id=175677&p=0); [correction FAQ](https://gov.gg/employers). These are instructions for the responsible employer, not authorization for this workflow to email personal records.

A refund through payroll requires a Direction Notice. The Employer Guide limits refunds to tax deducted in the current quarter and prohibits a negative overall tax-deducted figure. Do not offset an independently estimated annual overpayment against current deductions. [Employer Guide, p10](https://gov.gg/CHttpHandler.ashx?id=175677&p=0).

### Benefits that cannot be processed through ETI

If there is no or insufficient cash pay to deduct the required tax, submit the separate benefit-in-kind return. For **2026 benefits the deadline is 15 February 2027**. A supporting spreadsheet does not replace the return or its certificate. Employees must also declare benefits not already included in ETI on their own return; do not double-count a benefit already returned through payroll. [Sections 2 and 9; SoP E38](https://gov.gg/CHttpHandler.ashx?id=202739&p=0). This exception does not establish cancellation of contribution or secondary-pension obligations: reconcile those separately.

### Statutory employment-benefit and record boundary

Section 8(1)–(3) of the current Income Tax Law confirms employment emoluments less authorised deductions and the benefit market-value/use/service/cost categories, reduced by the employee’s qualifying contribution. Section 8(2A)(a) excludes a controlling employee’s benefit **only if and to the extent** that the providing company has no relevant business deduction or Part IX/X/XIV relief for its provision or asset. Reconcile the company’s actual tax treatment before applying this exclusion; control alone is not sufficient. The detailed current benefit scales and concessions above continue to use the 2026 authority Guide. [Income Tax Law s8](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253819).

### Statutory Class 2/Class 3 payment and assessment calendar

Obtain a registration number before the end of the first contribution week in which liable or entitled to pay Class 2/3 if none was previously allocated (regulation 26). For Class 2, regulation 27 requires the approved quarterly contribution record, in electronic or hard-copy form, with remittance within **15 days after the contribution quarter**; an express extension is limited to two months. Earlier agreed payments do not extend that deadline. Regulation 27(4) assigns boundary days to quarters, so use its contribution-quarter record rather than assuming thirteen Monday-based weeks in each calendar quarter. Regulation 28(1) applies that route to under-pension-age Class 3. For pension-age Class 3, arrange the required direct debit or pay the quarterly statement within **28 days of receipt**, as regulation 28(2) provides. The simultaneous-class regulation 37 account is instead calculated annually in arrears and payable on receipt. Retain notices, extensions, actual receipt dates, estimated/final bases and reconciliations. [Contributions Regulations rr26–28, 37](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646).

A contribution/classification determination under Social Insurance Law section 74(1)(b) or (c) can be appealed by written notice to the Director stating grounds within **30 days beginning on the date of the determination notice**, under section 74A. The grounds are miscalculation/other error or unreasonableness as a matter of law on the facts. Late admission requires the Tribunal to accept absence, sickness or other reasonable cause preventing timely notice. Do not substitute the different review/appeal route for a penalty/information notice. [Social Insurance Law s74A](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253497).

## Penalties and interest

The Employer Guide currently linked by the Revenue Service is labelled **2025**. Its p18 states an initial late-payment surcharge of **5% for tax deductions** and **2.5% for contribution deductions**, with no surcharge where its amount is below **£50**. Part-payment leaves the unpaid balance exposed; a correction increasing liability runs from the original due date. It also states a **£300** automatic late-return penalty and possible **£50 per day** until submission. Additional surcharges apply at intervals to outstanding amounts, including earlier charges, but this Guide has not verified the intervals or a complete statutory calculation. [Employer Guide, p18](https://gov.gg/CHttpHandler.ashx?id=175677&p=0).

The same guidance describes a written surcharge appeal to the Director within **30 days**, limited to legal liability or calculation, not an employer's error or oversight. Check the assessment notice and statutory appeal provisions for the exact time trigger and procedure. Current section 193A now confirms statutory **ceilings of £300 plus £50 per continuing day after the original penalty is imposed** for the stated ETI return/record/document failures. For a materially incorrect/incomplete form, section 193A(2A) first requires a written correction notice allowing at least **21 days**; do not apply that trigger to every late return or call the ceiling an automatic assessment. Section 76 provides the issue-date written-grounds appeal route, and section 199 supplies income-tax surcharge mechanics with further charges every six months; the income-tax rate/minimum instrument and separate social-insurance provisions are now supplied below. The older employer manual’s tax/contribution surcharge percentages are attributed guidance, not a complete current statutory penalty opinion. [Income Tax Law ss76, 193A, 199](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253819).

### Separate statutory contribution enforcement and review

Do not apply the income-tax surcharge formula to social insurance. **Social Insurance Law s104(1A)** makes an employer's overdue primary/secondary Class 1 contributions subject to an initial **2.5% penalty** plus **2.5% per month interest on the outstanding contribution from its due date until paid**. The statutory text does not supply the older manual's £50 minimum or its six-month tax-surcharge interval for this provision. For an unchanged £5,000 contribution principal and an established two full months outstanding, the statutory arithmetic is £125 penalty plus £250 interest = £375, before the facts of any payment, part-month calculation or authority relief. Do not compound that interest on the penalty without an applicable source. The older employer-manual treatment above is preserved as attributed administrative guidance; its reconciliation with the statutory monthly calculation, including actual part-month practice, remains a specific unresolved point. [Social Insurance Law s104(1A)](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253497); [supplementary control](../../evidence/research/guernsey-2026/ordinary-completion-2026-10-28/enforcement-controls.md).

The **employer registration/schedule default** route is section 17A: by notice the Director can impose up to **£300**, with up to **£50 per continuing day after the original penalty is imposed** for the schedule failure. These are ceilings tied to the statutory trigger, not an automatic charge on every debt. Sections 17E–17F have a different notice route: the fixed penalty has a prescribed amount capped at £50,000 and a payment date at least four weeks after issue; the escalating notice requires the stated prior fixed notice and continuing non-compliance, with the prescribed daily rate capped at £10,000. A ceiling alone does not establish the prescribed charge. Pending review/appeal of the specified underlying notices restricts issue of these further notices as sections 17E(2) and 17F(2) provide. Keep the actual notice, prescribed-rate authority, service/issue dates, required action and eventual compliance date. [Social Insurance Law ss17A,17E–17H](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253497).

For notices under sections 17A–17F, apply in writing for section 74H review within **30 days beginning on the notice date**. Review-stage suspension is at the Director's discretion. Section 74AB appeal to the Revenue Service Tribunal requires the review to have been completed or the Director to have declined the requested review; give written grounds to the Director within its **30-day notice-date period**, preserving the original notice date and promptly seeking Tribunal admission if reasonable cause prevented timely notice. The grounds are error/miscalculation, unreasonableness as a matter of law, or the penalty not being payable. On appeal the statutory suspension begins when the Tribunal receives notice and lasts until final determination and compliance with its implementing order/direction. Do not treat the review request alone as an automatic collection stay or assume completion of a review creates a new thirty-day clock. [Social Insurance Law ss74AB,74H](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253497).

For **income-tax/ETI** arrears, [section 199 and the 2005 Regulations](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268079) supply 5% initially, 5% on the remaining total at each six-month point, and a £50 aggregate threshold, with the actual statutory settlement/assessment/relief gates. The qualifying employee coding-notice exemption does not extend to the employer. Use the [income-tax surcharge method](gg-individual-income-tax.md#statutory-income-tax-surcharge-calculation) and retain separate tax and contribution ledgers.

## Secondary pensions

Use the [secondary-pensions Guide](gg-secondary-pensions.md) for 2026 eligibility, enrolment, minimum contributions, opt-outs and provider payments. These obligations are separate from Class 1 social insurance; specialist cases and statutory reconciliation remain open.

## Cross-border points

The Employer Guide requires a certificate of continuing liability to be forwarded when work starts for a claim to be excused Guernsey contributions based on compulsory coverage elsewhere. Foreign payment alone does not prove an exemption. Agreement coverage and the certificate's validity remain case-specific checks. [Employer Guide, p19](https://gov.gg/CHttpHandler.ashx?id=175677&p=0).

Income-tax treaty relief and social-insurance coverage are separate. Consult the [UK treaty Guide](gg-uk-treaty-employment-and-relief.md) for its tax scope; it does not establish contribution relief. Secondary pensions and foreign coverage require their separate rules. Ordinary housing and split-employment methods are supplied above; the car-period reconciliation and £900 exemption allocation across employers remain explicit limits.

## Worked examples that recompute

**Ordinary month.** At £3,000 qualifying gross pay, below the upper cap and above the lower threshold, employee SI is £225 and employer SI £213. Employer cost before pensions/other costs is £3,213. Net pay still needs tax and other deductions.

```oa-check
name: Guernsey ordinary monthly Class 1 contributions 2026
inputs:
  gross: 3000
  cap: 16380
  employee_rate: 0.075
  employer_rate: 0.071
steps:
  - base: min(gross, cap)
  - employee_si: round(base * employee_rate, 2)
  - employer_si: round(base * employer_rate, 2)
  - employer_cost: gross + employer_si
expected:
  employee_si: 225
  employer_si: 213
  employer_cost: 3213
```

**Upper-cap case.** At £20,000 gross in an ordinary full month, the contribution base is £16,380, giving employee SI £1,228.50 and employer SI £1,162.98. Gross pay still remains £20,000 for the separate tax-base analysis; do not cap wages reported for income tax at the SI limit.

```oa-check
name: Guernsey monthly Class 1 upper cap 2026
inputs:
  gross: 20000
  cap: 16380
  employee_rate: 0.075
  employer_rate: 0.071
steps:
  - base: min(gross, cap)
  - employee_si: round(base * employee_rate, 2)
  - employer_si: round(base * employer_rate, 2)
expected:
  base: 16380
  employee_si: 1228.50
  employer_si: 1162.98
```

Both examples use the [2026 leaflet, p19](https://gov.gg/CHttpHandler.ashx?id=102818&p=0). They assume established ordinary Class 1 status, no pension-age transition, allocation or other exception.

### Eligible benefit and employer-paid-tax examples

**Ongoing eligible benefit.** Assume individual medical cover costs £100 monthly, no specific exemption/concession applies, and the full £900 general exemption is available for the year. Following section 9's example, allocate £75 exemption monthly, leaving a £25 monthly taxable benefit. Annual taxable benefit is £300. Add £25 to the applicable monthly payroll base; do not deduct £900 every month. [Section 9, example 3](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

[Supplementary regression control retained byte-exact](../../evidence/research/guernsey-2026/original-controls.md).

**Employer bears income tax.** For an established £5,000 taxable benefit, with 20% applying throughout and no remaining exemption/allowance affecting the incremental charge, grossed-up income is £6,250. The £1,250 tax reimbursement is itself taxable and total income tax is £1,250, leaving £5,000 after tax. This reproduces the E4 mechanism; contributions and pension costs are additional analyses. [SoP E4](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

[Supplementary regression control retained byte-exact](../../evidence/research/guernsey-2026/original-controls.md).

### Vehicle and housing boundary examples

**Gross car cost.** A car costs £30,000 before a £5,000 trade-in, plus £3,000 extras. The employee contributes £2,000 to the extras. Following Fact Sheet 1's example, the benefit cost basis is £31,000. If no exemption or limited category applies, the annual benefit is **£6,200**. The cash paid after trade-in is not the benefit cost basis. [Fact Sheet 1, sections 2.2 and 4](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

[Supplementary regression control retained byte-exact](../../evidence/research/guernsey-2026/original-controls.md).

**Strict business-use boundary.** Assume a £30,000 employer car, 10,000 total miles, no exemption, no qualifying pool arrangement, and private use beyond commuting. At 7,500 business miles the fraction is exactly 75%, which fails the **more-than-75%** test; the ordinary annual value is £6,000. At 7,510 miles it is 75.1%, satisfying that limb and giving the £1,565 limited value. Mileage evidence and the other assumptions decide classification; arithmetic alone does not. [Fact Sheet 1, section 2](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

[Supplementary regression control retained byte-exact](../../evidence/research/guernsey-2026/original-controls.md).

**Furnished housing election.** Assume a full-year ordinary non-proprietary employee with an independently established £40,000 assessable-emoluments base, no contributions and a supported £6,000 annual open-market rental value. The percentage benefit is £7,000. With a valid timely election, the rental-value cap gives £6,000; without it, this calculation does not establish entitlement to the lower amount. Utilities remain separate. [Fact Sheet 2, section 2; SoP E24](https://gov.gg/CHttpHandler.ashx?id=202739&p=0).

[Supplementary regression control retained byte-exact](../../evidence/research/guernsey-2026/original-controls.md).

## Ask the client first

- Where is the work performed, and is a continuing-liability certificate in force?
- What are the contracts, materials supplied and actual employer relationships?
- What are the pay frequency, pension-age date, start/leave dates and valid notices?
- Are there dividends, loans, a historic director election or non-cash benefits, and how much benefit exemption has been used?
- How many staff are employed and what payment arrangement has Revenue Service set?
- Which returns, payments or corrections have already been submitted?

## Self-checks and output

- Retain the relevant source version, the applicable period and the facts establishing scope.
- Reconcile every input to the client's records; keep estimates separate from actual amounts.
- Recompute the example and boundary cases before applying the method.
- Record exclusions and unresolved points explicitly. Do not convert a missing source into an exemption.
- Deliver a calculation, evidence list, filing calendar and reviewer questions. Record the exact revision reviewed.

## Sources

Original sources read on 22 October 2026: [Benefits in Kind Guide 2026](https://gov.gg/CHttpHandler.ashx?id=202739&p=0), [employer webpage](https://gov.gg/employers), [contribution classification guidance](https://gov.gg/SScontributions), [2026 rates leaflet pp19–20](https://gov.gg/CHttpHandler.ashx?id=102818&p=0), [Employer Guide 2025 pp9–10 and 16–19](https://gov.gg/CHttpHandler.ashx?id=175677&p=0), and [SIC1](https://gov.gg/CHttpHandler.ashx?id=196680&p=0). The dated 2026 leaflet controls current contribution amounts; the 2025 manual is used only for the cited procedural guidance. Current income-tax benefit and ETI-penalty provisions were additionally read on 27 October 2026; the targeted Class 2/Class 3 and allocation/reassessment provisions were additionally read on 28 October 2026 as recorded below. This is not a claim to have reviewed the entire social-insurance statute or every special class.

| Additional source | Read scope | Read on |
|---|---|---|
| [Income Tax Law v.0113](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253819) | s8 benefit/base rules; ss76, 193A, 199 ETI penalty/appeal/surcharge rules | 2026-10-27 |
| [Commencing self-employment Form 366/CF30 (2020)](https://gov.gg/CHttpHandler.ashx?id=101485&p=0) | Both pages; contribution estimate/final assessment mechanics only; obsolete tax payment dates expressly rejected | 2026-10-27 UTC |
| [Class 3 CF130b (01/26)](https://gov.gg/CHttpHandler.ashx?id=197037&p=0) and [CF130a (01/26)](https://gov.gg/CHttpHandler.ashx?id=197038&p=0) | All three pages each, source disclosures and interim contribution assessment/payment notices | 2026-10-27 UTC |
| [Social Insurance Law v.0073](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=253497) | ss1, 3–17H, 74A/74AB/74H, 104(1A) and Sixth Schedule contribution definitions; targeted operative provisions only | 2026-10-28 |
| [Contributions Regulations 2000 v.0018, GSI49 of 1999](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268646) | rr1–11, 26–28, 37–44: actual bases, mixed classes, periods, assessments, payments, offsets/refunds | 2026-10-28 |
| [Classification Regulations 1978 v.0005](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=270319) | r2, r5A and First Schedule III paragraphs 8–9 | 2026-10-28 |
| [Rates Ordinance 2025](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=262506) | ss1–6, 10–13 and schedules, contributions effective 1 January 2026 | 2026-10-28 |
| [Circular 13, 9 September 2020](https://gov.gg/CHttpHandler.ashx?id=130411&p=0) | Both pages; current-year basis from 2021, COVID relief not applied to 2026 | 2026-10-28 |

| [2026 Benefits in Kind Guide](https://gov.gg/CHttpHandler.ashx?id=202739&p=0) | Section 11/examples 4–5, Fact Sheet 2 and SoP E28 reread for actual partial-period housing, split-employment and conflicting car calculations | 2026-10-28 |
| [Surcharges and Supplements Regulations 2005](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=268079) | All rr1–9; income-tax rates/minimum, kept separate from statutory Class 1 contribution penalty/interest | 2026-10-28 |

| [Original 2010 Valuation Regulations](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=267223), [current consolidation](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=267239), [2025 amendment](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=265330) | Original reg5 including page4 fraction visually checked; current rr1–2,5–6; complete2025 rr1–7. Statutory annual car value controls over the inconsistent monthly guidance illustration | 2026-10-28 |
| [Exemption Ordinance](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=263414), [authentic 2022 No.3 amendment](https://www.guernseylegalresources.gg/CHttpHandler.ashx?fileid=263409) | ss1,2(1)(v),2(2),3 and notes;2022ss12,14: one annual aggregate eligible-benefit exemption,900from2023 | 2026-10-28 |

Not yet confirmed: exact Class 3 lower-limit/deeming interaction under regulation 38(1), (6)–(7), Class 2/3 penny rounding beyond the published weekly limits, and authority-directed part-year reassessment outcomes; actual contribution part-month interest and reconciliation of older manual relief with s104(1A), prescribed fixed/escalating penalty amounts and full notice-specific enforcement procedures; current employer-specific £900 withholding allocation instructions (the statutory annual aggregate and car day-based reconciliation are supplied); share schemes, relocation and scheme-specific pension/foreign coverage cases. These are explicit limits, not nil-charge findings. The new 28 October ordinary-contribution, benefit-period and enforcement methods are checked in the [fresh ordinary-method whole-pack review](../../evidence/research/guernsey-2026/ordinary-completion-2026-10-28/independent-review/report.md); earlier published review covers their predecessor. The [fresh independent whole-pack review](../../evidence/research/guernsey-2026/review/report.md) and [bounded contribution-assessment closure](../../evidence/research/guernsey-2026/review/bounded-addition-closure.md) accept the earlier published revision at 6ae8c8a2; professional attestation remains pending. The subsequent statutory car reconciliation and annual £900 aggregate methods are accepted within their stated limits in the [statutory-benefit and domestic-TP whole-pack review](../../evidence/research/guernsey-2026/statutory-gap-closure-2026-10-28/independent-review/report.md) and [final status closure](../../evidence/research/guernsey-2026/statutory-gap-closure-2026-10-28/independent-review/closure.md); those earlier reviews cover the published predecessor.

## Disclaimer

General tax and accounting reference material only. These drafts have not been professionally attested. A qualified professional in the relevant jurisdiction must check the facts, current law, elections and deadlines before anyone files, pays or acts on an output.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-11-01. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `gg-payroll-social-insurance` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/gg-payroll-social-insurance. If neither is available, confirm every figure against the official source pages cited above before relying on it.