Local Exchange Trading Schemes (LETS)

blue_monkey_2

Looks great, thanks - I saw th link you posted after I posted my message and then was distracted by the kids. I checked the one for the area and the page did not exst, nothing to lose by giving it a try and setting up my own though. I can see how it would work. Thank you for that link.

beemuzed

I think this sounds a really good idea. Wish someone did something like it round here.....Hmm I know, if you want something done....not sure I have the initiative!
Good luck - hope it takes off.

cuddlymarm

Hi

I have been recently reading an article about the LETs system. Does anyone use them and if so how well does the system work?

Thanks in advance for any views

Cuddles:rotfl:

Caterina

I have used it in the past and it works well if the group is well established and if there are a fair number of skills and swaps.

HTH

Caterina

Fruball

We are members of our local LETS and think its great - We don't do loads but its really helpful to be able to call upon it as and when needed.

We have helped quite a few people too, which makes you feel good about yourself

Sign up! Its only cheap to join up and really handy, particularly in these tough times.

wigglebeena

Is anyone saving money by joining one of these schemes? The details vary, but basically they approximate to being organised barter schemes - you swap an hour of your own skill (German lessons/hairdressing/sheep shearing / whatever) and get credited with a virtual currency so you can 'buy' someone else's (book-keeping / maths lessons / car repair etc).

In the West Yorkshire area there's one just getting off the ground, www.bradfordlets.org . Any takers?

Pink.

Hi wigglebeena,

There was a thread on LETS schemes a couple of days ago so I've added your post to it to keep the replies together.

Pink

ceridwen

Hapless wrote: »

Btw If you do work or make a gain by being part of a LETS scheme, you have to declare it to the DSS.

Well - you certainly don't normally have to declare it to HM Revenue and Customs for tax purposes - so I can't imagine one has to declare it either to D.W.P. This discussion is a frequent one in LETS. The position is that one only has to declare Lets Credits earned to HM Revenue and Customs if it's in your normal line of trade. That is - a plumber who did some plumbing in a LETS scheme would have to declare it. If he did something else that isnt his normal trade (eg carpentry or "selling" some surplus food from his garden) then he wouldnt.

I would imagine its highly unlikely one was supposed to declare it either to D.W.P. - as one is receiving what I would imagine is classed as "benefit in kind" - rather than actual money. No money changes hands within LETS schemes - unless, for instance, someone is performing a service for another member that involves the purchase of goods - in which case the "buyer" would cover the cost of materials only. E.g. if someone "commissions" another LETS member to make them a pair of curtains - then the "buyer" would hand over enough money to cover the cost of the materials for those curtains - but would pay for the "dressmakers" labour in LETS Credits only.

The only other way money would change hands is if someone "sells" their labour to another LETS member to perform a service that is in their normal line of trade and decides to charge part LETS credits/part money - eg one might use the services of someone who works as a therapist anyway as the "day job" and their charge might be say 50% Lets Credits/50% cash.

In the majority of LETS exchanges no cash at all changes hands - except for, possibly, covering the cost of any materials involved.

To sum up - if I was unemployed and was "selling" my surplus garden produce (for instance) through LETS - then the "buyer" would be paying me LETS credits only and thus there wouldnt be any question of any Govt Dept being involved in any way - as no money would be involved.

I guess the basic rule of thumb would be - if one gets actual money in payment then the "Real World" wants to know. If one isn't receiving actual money - then the "Real World" isn't involved (as one can't pay bills or hand over LETS credits in supermarkets, etc). Lets Credits are only tradeable between ourselves as a barter tool.

wigglebeena

I could be wrong, but I've a feeling that HMRC have officially stated that yes, LETS exchanges are 'of interest' to them. Although I don't know how the hell you'd work out what to put on a return. Think they might regret it if they get a flood of bewildered callers going 'I don't know what to put on my form!'

ceridwen

Wigglebeena

You are possibly right re HMRC saying LETS is "of interest" to them - but that WOULD only be for those who are offering their normal line of trade in the LETS scheme (ie maybe 5% or less of members) - as the vast vast majority of LETS members are offering something distinctly different to their normal line of trade. Complementary therapies anyone? Surplus garden produce anyone? Home-made cakes/bread anyone?

It is rarely the case that plumbers will offer plumbing, typists will offer typing, etc - that's not how LETS tends to work.

By and large people are offering goods of one description or another "for sale" and/or offering services they have never made any money from as a living.

One good way to think of LETS is organised "doing favours" for each other. In our rather isolated society people may well not have anyone they feel they can ask to do a bit of housesitting/garden clearing/etc or don't want to feel they are just asking without, in return, giving back. This way - they are "paying their way" and can ask without feeling they are incurring a direct "obligation" to the "seller". Incidentally, its also a good way to meet intelligent/interesting people.