Postby LozaACCS » Tue Sep 19, 2017 6:47 am
Accounts prepared for tax purposes should follow GAAP subject to legislation in certain areas.
The general principle is that income must be in the form of money or moneys worth, there is no equivalent for traders of the BIK rules applying to employees, so the issue is generally one of,
Does the receipt arise from the trade or is it received in a personal capacity (in which case no liability arises)
Is the receipt of a revenue or capital nature.
Does specific legislation exist for the receipt in question.
In this case you make it clear that the vouchers are received as income for services rendered, and can be exchanged for moneys worth so yes they should be included as income.
I assume that VAT is not in point, if it were then issues could arise on the value of the supply.
A further (perhaps more worrying issue) is why you are being paid in vouchers, you state that the overseas customers are averse to using pay pal, why is this ? could it be that they wish to conceal their identity, if so there are AML rules of which you need to be aware, any advisers you use should require explanations from you regarding these transactions.