Exchange of labour

[firework]

Company A sometime needs a days labour from company B and vice versa.

Rather than raise invoices, is it acceptable that company A will give a days labour to company B in exchange for a days labour?

It reduces admin and turnover which can be helpful.

However, would HMRC have an issue with this?

Thank you

 

[STDFR33]

As long as both companies account for income, expenses and VAT correctly, HMRC won't have a problem.

There might be employment issues to overcome, and I'm no expert at that!

 

[firework]

Thank you.

The point there will be no income and expenses as it is an exchange of labour for labour and not an exchange of cash for labour.

 

[obscure]

The labour has value and thus is taxable (as far as the tax man is concerned).