Rise of the bartering culture ?

bo_drinker

It's a labour only agreement which seems common.

bluey890

I often do a little moonlighting as a male gigolo, to subsidise my main rocket scientist job.
I have recently noticed that more and more women are willing to barter.
The Rolex watches have became Casios and the meals out are now meals in.
I think it is because of the credit crunch. I don't think my 'performance' has deteriorated.

bo_drinker

nearlynew wrote: »

Barter is great in principle.

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

With cash

nearlynew

bo_drinker wrote: »

With cash

and where do you get that from if everything is done by bartering?

kalaika

mbga9pgf wrote: »

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.

Just a point to note, barter transactions between two individuals in a private transaction is tax free (e.g. if I repair my friend's car and in return he mows my lawn). I think it should be pointed out that this advice is not only completely wrong when applied to a business but but also against the law.

If a business enters a barter transaction, just because no actual cash changes hands it is still a business transaction and must be recorded accordingly within the company books. VAT must be applied (if applicable) and corporation tax/income tax would also apply.

For example, in relation to VAT, this is taken from HMRC's website:

"VAT and barter transactions
If you supply services or goods (new or second-hand) and receive other goods or services in payment, there are two separate supplies:

• the supply from you to your customer
• the supply from your customer to you

You must account for VAT, and so must your customer if they're VAT-registered. The VAT treatment is the same as for part-exchanges. You must both account for VAT on the amounts you would each have paid for the goods or services if there had been no barter and they had been paid for with money."

If barter transactions are omitted from your business records, HMRC will catch up with you and they will charge you for all the tax due with penalties and interest. Also, if they think its serious enough and that you've deliberately concealed it from them, they may even push for you to be charged with fraud...

Sorry for the long post, but I think it's important that the incorrect advice was challenged!

novazombie

With all the trillions of cash being printed around the world with queasing, inflation or even hyperinflation is a real possibility.

Gold and silver in the hands of the people is the last thing governments want because they cant profit or control us anymore.


I think small ingots of silver will be great in the future instead of cash.

Ingot we trust

novazombie

kalaika wrote: »

Just a point to note, barter transactions between two individuals in a private transaction is tax free (e.g. if I repair my friend's car and in return he mows my lawn). I think it should be pointed out that this advice is not only completely wrong when applied to a business but but also against the law.

If a business enters a barter transaction, just because no actual cash changes hands it is still a business transaction and must be recorded accordingly within the company books. VAT must be applied (if applicable) and corporation tax/income tax would also apply.

For example, in relation to VAT, this is taken from HMRC's website:

"VAT and barter transactions
If you supply services or goods (new or second-hand) and receive other goods or services in payment, there are two separate supplies:

• the supply from you to your customer
• the supply from your customer to you

You must account for VAT, and so must your customer if they're VAT-registered. The VAT treatment is the same as for part-exchanges. You must both account for VAT on the amounts you would each have paid for the goods or services if there had been no barter and they had been paid for with money."

If barter transactions are omitted from your business records, HMRC will catch up with you and they will charge you for all the tax due with penalties and interest. Also, if they think its serious enough and that you've deliberately concealed it from them, they may even push for you to be charged with fraud...

Sorry for the long post, but I think it's important that the incorrect advice was challenged!

In the USA now the way they are dealing with the crisis is to put up taxes and get tough with inspectors. Im sure it will happen here.

"Obama is proposing raising taxes, he has already hired more IRS agents and they have been trained to enforce tax collection"

taken from free ebook only can be read for another 2 weeks.

http://conspiracyoftherich.com/read/current

A very good read, what happens in the USA can give very good indication about what will happen in the UK.


http://video.ap.org/?f=YOUR_OVN_ID&PID=aAQrRcV3CzvupfwkqbUGhd8y6gq2OXX6