Bartering - free classes given to volunteer

Bartering tax consequences

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I have a yoga client that has given free classes to volunteers that have helped with some admin.  The volunteers are not running a business so I believe she should not need to account for this as she would when she gave classes to another individual who bartered his marketing services and accounted for this is his own accounts as well.  Am I right?  I have a small worry in the back of my mind that perhaps the NMW issue will affect things.  Has anyone else come across this issue before?

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chips_at_mattersey
By Les Howard
05th Sep 2017 08:36

If either party is registered for VAT, then the transaction involves supply and consideration for both.

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By monksview
05th Sep 2017 09:04

The business is not and the volunteers are not in business so presumably there is no supply so nothing is reportable to HMRC.

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By michaelblake
05th Sep 2017 21:11

For income tax purposes if a value was put on the service provided (the normal selling price of a class) then arguably that value should be brought into account as income but at the same time an equal deduction could be claimed for the value of the admin services bought in exchange so there is no effect on profit

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