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MSE Blog Discussion: Charidee and MoneySaving: how to be tightfisted and openhearted

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Useful blog with some good points, but no real new info as far as I'm concerned.
If they operate alone then I doubt that either the Spanish teacher or the Guitar teacher will be VAT registered, but if either is they should probably be accounting for (and indeed paying) VAT on these services, even if no money is changing hands (see below from the HMRC website).
Honestly, just when you think you are helping people some git of an accountant turns up and spoils things
2.9 Do I still have to account for VAT if no money is paid?
It depends. If you provide genuinely free services there is no VAT. Free goods are treated a bit differently. If you occasionally give away to different people an item from stock that has cost you less than £50, there is no VAT. You must account for VAT on all other goods which you provide free of charge.
You must also account for VAT on the full value of anything you supply if you receive goods or services rather than money in return for it. For example, if you take something in part-exchange for goods you sell, you must account for VAT on the full value of what you sell, not just the money that changes hands.