FAQs

FAQs
FREQUENTLY ASKED QUESTIONS

• What if I have nothing to offer? Everyone has something to offer. You do not need to have special skills, just willing and available to help with ordinary tasks. LETS members can help others move house, hold up shelves while someone drills the holes, run errands or offer household help to someone who is very busy, ill or just stressed. You can give as much or as little time as you want - some members do the occasional hour or two here and there, others contribute whole days. Some jobs you can even do in your own home. And if you do have a special skill, so much the better.

• Can I trade if I have no Hearts in my account? YES! You do not have to be in credit to trade. Your account can go into debit (- minus balance - ) but no interest is charged. (In fact, as the total number of Hearts in the system is always zero, it would not work at all if everyone tried to stay in credit all the time!)

• What is a Heart worth? A Heart is approximately equivalent to a pound sterling, and some people charge exactly the same in Hearts as they might in pounds for their goods or services. However, because there are no debit limits, LETS members find they can afford to be much more generous in Hearts than they could be with sterling. Therefore, the value of the Heart is flexible, and it often depends on what the two people involved in the transaction agree upon.

• What if I still need cash? Hearts can be used along with cash. You can ask for a proportion in cash (eg. 25% cash, 75% Hearts) or for cash to cover materials, petrol etc. Only Hearts are recorded in your accounts.

• What if I am not satisfied with the work someone has done? LETS functions on the basis of goodwill and trust, so problems like this are rare, and the online system enables you to give feedback after you have traded. However, you can try to avoid misunderstandings by agreeing in advance the price, timescale and standard of work, and you are free to ask the person about their qualifications and experience. If you have problems, a mediation service is included in the Core Group roles, but BrumLETS cannot take responsibility legally if things cannot be resolved. Normal trading laws still apply to LETS. In the very last resort, claims for compensation can be made in the county court.

• What if I run up a large debit? In LETS, having a minus balance does not present a problem as LETS cheques cannot bounce, and it is more important to keep trading than to keep your account in credit. If someone goes further and further into debit, a member of the Core Group will discuss the situation with them and offer advice. However, in LETS there is no embarrassment attached to having a minus balance. It is better to spend Hearts than to hoard them!

• Is trading on LETS taxable? Most LETS trading is of an occasional social favour type, which is not taxable. However, if a member conducts trade on LETS as part of a regular business, any profits (after deducting business expenses and personal allowance) will in theory be taxable in sterling - if the total profit reaches the taxable level, so members to whom this applies may include declare any Hearts "profits" in their tax returns. If they are concerned about this, they can ensure that they cover their tax liabilities by asking for a percentage in sterling.

• Will earnings in Hearts affect my benefits? Most benefits should not be affected as long as claimants are not trading for more than 16 hours a week, and are available for work.

About BrumLETS • More Information • FAQs • Constitution • Agreement • Application Form