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Barter your way through COVID disruption

While we wait for the magic-bullets that promise to reduce the impact of COVID – vaccines etc – should we be exploring ways to exchange goods and services with our suppliers and customers?
Barter is defined as: the exchange of goods and services without using money.

Perhaps a decorator could repaint the outside of a local restaurant in exchange for a prepaid voucher for a number of meals once the present restrictions are lifted.

Exchange in this way could help to sustain economic activity without the need to impact the cash-flow of either party.

Obviously, invoices would need to be exchanged and VAT regulations observed and in certain circumstances – if any VAT could not be recovered by one of the parties – then cash flow would be affected.

Likewise, the deemed cost of goods exchanged would need to be a tax allowable deduction to the other party’s business, otherwise tax liabilities may be increased.

Nevertheless, there may be mileage in this approach if the boxes are ticked:

  • No VAT issues, and
  • No tax issues.

As a bonus, barter would underline support between businesses and create lasting goodwill that will benefit all as we gradually emerge from the threat of coronavirus in the coming months.

Source: Other Tue, 10 Nov 2020 00:00:00 +0100

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Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.

Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest:

HMRC
FT
BBC
VEALE WASBROUGH VIZARDS
CESP
PRACTICE INDEX
SIMCOMM ACADEMY

More Local:
FOOTPLATE EXPERIENCE
ANGLEBURY PRESS
OFFCAMBER.CO.UK