Barter your way through COVID disruption
10/11/2020

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.


Latest News

HMRC’s Annual Tax Summary
03/12/2020 - More...
The Annual Tax Summary is a document provided by HMRC that provides details on

Pay January tax by instalments
03/12/2020 - More...
The deadline for submitting your 2019-20 Self-Assessment tax returns online is

Confirmation of Minimum Wage increases 2021
03/12/2020 - More...
The Chancellor used the recent Spending Review to confirm that increased

Search News


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

»Signup for the newsletter