Rise of the bartering culture ?

kabayiri

In recent weeks, I have been offered bartering deals by people I deal with, for services mostly, like building/gardening.

I know this has always gone on, but it definitely more noticeable.

Has anyone else noticed this, and are there any downsides / tax implications to this?

mbga9pgf

Its Tax free. Why pay the state when you can exchange services for free without corporation tax, VAT, income tax et al?

Another reason why the government will have a big black hole in its budget.

nearlynew

Barter is good for the type of exchanges described in the OP and it avoids the interference from authorities described in post #2

But as anyone who has looked deeper will tell you, barter's biggest drawback is that the exchange of goods and services are not always synchronised.

As a simple example...........
I build you a house now and you will pay me in food when you harvest your crop.
While I am waiting I starve to death.

That's where money comes in - as a means of exchange.
Something you can accept with confidence that you can exchange it for something of value in the future.

Money is a good idea.

Debt-based money as we have today is not a good idea.

carolt

I think it's a great idea - why bring capitalism in if you can avoid it? For people short of money - or shorter than usual - ie most people at the moment, what could be better than exchanging goods/services and cutting out the middle men?

I'd like to see much more of this - I've read about some great schemes, and there are some good skill-swapping sites about, though possibly too many, meaning those interested are too scattered to find each other.

bo_drinker

It is happening in the building trade one days labour in a trade swapped for another. say I go and build a wall for a chippy and he comes and hangs some doors for me.

nearlynew

bo_drinker wrote: »

It is happening in the building trade one days labour in a trade swapped for another. say I go and build a wall for a chippy and he comes and hangs some doors for me.

Barter is great in principle.

But how do you pay your water bill, for example?

1echidna

nearlynew wrote: »

Barter is great in principle.

But how do you pay your water bill, for example?

Go and pee in the reservoir perhaps?

nearlynew

How about your gas bill?


(you lose 10 points if you mention f4rts)

1echidna

nearlynew wrote: »

How about your gas bill?


(you lose 10 points if you mention f4rts)

Send the wife out for a cash job I suppose? I think a part barter society is all that could be achieved.

bo_drinker

nearlynew wrote: »

Barter is great in principle.

But how do you pay your water bill, for example?

Not a full time thing. Odd days here and there Brown will probably have a box to tick on the tax return for us self employed scum soon when he realises he's missing out.

Thrugelmir

Take care. A plumber I used was investigated by the Inland Revenue. He obviously did a lot of cash/bartering work in the past. As he said that he had to account for all the bathroom suites he booked through his accounts to actual sales invoices.

The Inland Revenue have enough stats on their system to know turnover/ gross margin etc for most businessess. Also know what you need to earn to live and pay your mortgage. Every so often it'll be your turn for a tax investigation. When it is , the onus is on you to disprove them!