{"id":6461,"date":"2003-01-02T11:59:00","date_gmt":"2003-01-02T11:59:00","guid":{"rendered":"http:\/\/startups.co.uk\/?p=6461"},"modified":"2023-12-14T11:17:19","modified_gmt":"2023-12-14T11:17:19","slug":"how-is-tax-applied-to-bartering","status":"publish","type":"post","link":"https:\/\/startups.co.uk\/tax\/how-is-tax-applied-to-bartering\/","title":{"rendered":"How is tax applied to bartering?"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]Contrary to some misconceptions, bartering is not a means of <a href=\"https:\/\/startups.co.uk\/tax\/when-do-you-need-to-register-for-vat\/\"><strong>business tax<\/strong><\/a> evasion.<\/p>\n<p>Transactions are treated in the same way as a cash transaction and are therefore tax-deductible. But with VAT registered companies, the way that this is paid can depend on the barter company. It can either be charged in pounds sterling or as trade pounds.<\/p>\n<p>For example, with Bartercard, a business will pay the VAT on a purchase in trade pounds in the same way that it will invoice other members for a total number of trade pounds that includes VAT. &ldquo;Eventually, the two cancel each other out and the cash is paid by each company at the end of the year,&rdquo; comments Tairq Islam of Bartercard.<\/p>\n<p>But Barter Marketing takes a different approach, with members being charged VAT separately and paying in cash on each transaction. &ldquo;If someone buys &pound;1k worth of printing they will pay for &pound;1k in barter credit and then pay &pound;175 in cash to the client,&rdquo; says managing director Alan Cartledge.<\/p>\n<p>&ldquo;It assists in the cash flow because the VAT has got to be paid in cash at the end of the day &ndash; the tax man won&rsquo;t barter.&rdquo;[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text]Contrary to some misconceptions, bartering is not a means of business tax evasion. Transactions are treated in the same way as a cash transaction and are therefore tax-deductible. But with VAT registered companies, the way that this is paid can depend on the barter company. It can either be charged in pounds sterling or as [&hellip;]<\/p>\n","protected":false},"author":91469,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3116],"tags":[],"acf":[],"yoast_head":"\n<title>How is tax applied to bartering? - Startups.co.uk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/startups.co.uk\/tax\/how-is-tax-applied-to-bartering\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How is tax applied to bartering? - Startups.co.uk\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text]Contrary to some misconceptions, bartering is not a means of business tax evasion. Transactions are treated in the same way as a cash transaction and are therefore tax-deductible. But with VAT registered companies, the way that this is paid can depend on the barter company. 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