FAQ

Q  Isn’t LETS a tax dodge?

A  No.  If the trade is what you normally pay tax for, you are responsible for paying tax on it as normal, as if you had earned Sterling.  You may need to charge a little Sterling to cover this.  If on the other hand your trade was outside your taxable activities, it is considered to be an occasional favour and there is no tax liability.

 

Q  What if someone leaves with a credit balance?

A  Better to ‘spend’ before they leave, as all members agree to balance their account before leaving.  However, if that hasn’t been possible, some members donate them to the System account or another member.

 

Q  What if someone leaves with a debit balance?

A  On joining members agree to balance their account, ie to zero, before they leave.  If it is not possible, their balance is noted, and if they rejoin they are re-united with it.  As long as the whole group is thriving, this does not affect any other member (see below).

 

Q  What if I trade with someone who has no NETS?

A  You don’t need to worry.  LETS cheques cannot bounce.  You will be credited regardless.

 

Q  I am uncomfortable going into debit on my account.  Surely it is wrong to trade if I have no NETS?

A  You need to understand that the scheme cannot work unless some members are in debit and others are in credit.  If it worries you too much, just ensure you don’t go into too much debit before you earn some.  Try to keep your balance as near to ZERO as possible.  LETS is not about accruing vast hoards of LETS currency – it can’t be invested – and if the system folded, then what would you do with it?

 

Q  Is there a way to trade on-line?

A  Yes, we have a Google Group.  Look on the Trading page.

 

Q  I sometimes forget my chequebook when I trade.  Can I write the details on anything?

A  Yes of course, or you might prefer to send an email instead to the NETS treasurer (must be from the payer) though.  See Contacts page.

 

Q  How do I know what my balance is and whether a particular trade has been processed?

A  Just ask.  You can email or phone for a balance, or get a snapshot of your detailed account. See contacts page.  Every 6 months every member’s balance is given for all to see.  This helps us all to see who needs to earn and who needs to spend, so we can help each other out.

 

MEMBERSHIP AND SUBS

Q  Subs are mentioned in newsletters all the time – I don’t understand what it’s for or how much it is, or when to pay it, or who to pay it to.

A  There are two types of subscriptions to pay in our LETS scheme.

(a) Sterling subs, are to cover any group costs which cannot be paid for in NETS (hall hire, stationery, stamps etc).  It is a tiny annual amount – between £3 and £5, according to your own budget.  This money is due every December to cover the ensuing year, from every member who has completed their first year of membership.  Reminders are sent by email or phone.

 

(b) NETS subs

12 Nets are debited from everyone’s account on 1st January every year.  This is paid to the System account and then allocated to Core Group members, who have a fixed annual NETS payment for the work they do to keep the group going.

 

Q  I didn’t pay my subs last year and I have been taken off the list.  How do I re-join?

12 Nets will be automatically taken from your account and paid to the System account IF you re-join within 6 months of leaving, to cover the admin time of removal and reinstatement.  However, you will be welcomed back.

 

Last updated: Monday, January 30th, 2017