There's never any obligation to trade. It is entirely up to you whether to respond to a particular request. If you're unsure about a person's qualifications to do a job, either ask them direct, or call a LETS Core Group Member. Make sure that you are both clear about the price and standard of workmanship expected before the trade is carried out.

Not at all. The LETS accounts allow you to earn Wells from any member, and spend them as and when you like.

 

No problem. Everyone's account starts at zero. All Wells are only created by trading. You just earn credits to balance your account when it suits you, every so often.
For the system to work, about half of the accounts will be in debit at any one time. So you can start spending immediately. Your account can go into debit but no interest is charged, and there's no fixed repayment schedule. There is no credit or debit limits, but to deter freeloading the balance and turnover of all accounts are published frequently.

 

Question 2: If I have no Wells currency, how can I trade?

Question 3: Do I need to find a direct exchange, like bartering?

Question 4: Do I have to trade with any member?

The choice is yours. Look in the directory to see what others are asking for their services. Or you could base your charges on an average hourly wage, market 'going rates', or leave them open for negotiation.  Low prices may attract trade and likewise if your prices are too high you may get less trade.  You are entitled to charge more for difficult jobs, or a high quality of service.  Whatever rates you decide to charge, you can always revise them in the next Directory.

Question 5: How do I price my goods and services?

Woking & District LETS

Local Exchange Trading System

Wells can always be used along with cash. You can ask for any proportion in cash (e.g. 25% cash, 75% Wells), enough to cover the cost of materials, petrol or other direct cash costs. The Wells part is for your time and skill and is recorded in your account.

All kinds of traders do extend their business and cash flow through barter networks. With LETS, the service is cheaper, and as Wells can only be spent locally the customer comes back again. LETS can bring in vital extra work to keep small businesses afloat in recession. The system creates new demand, as people who could not otherwise afford a service at all can pay for it wholly or partly in Wells. Any cash savings can be spent in local shops. LETS does help businesses and shops increase their customer base and turnover.

Many people's reaction! One main advantage of LETS is that it helps people realise they do have things to offer.  Whether they have skills or not their time, energy and resources will be of value to someone.  Just a few examples are shopping, gardening, decorating, lending home equipment or tools.  Start by asking yourself what you enjoy doing.  Or sit down with a friend and tell each other what you are good at,  For ideas, take a look at the Inspiration List which contains lots of good examples of things which have been traded through LETS.

Common Questions

With Woking & District LETS, one Well is loosely equivalent to £1. It doesn't have equal value to pound sterling, because it can only be used within the system.  You price your goods and services in Wells, or write a cheque for an agreed number of Wells when a transaction is made.  There are no physical tokens. Just like a bank cheque, the Wells you earn and spend only exist as figures in the LETS accounts.  They are simply a way of measuring the value of services given.

Question 1: What exactly is LETS currency, and what is it worth?

Question 6: I don't feel I have anything to offer

Question 13: How does LETS support local traders?

Question 7: I still need cash

To minimise the chances of misunderstanding, be sure to agree clearly in advance the price, timescale and standard of work.  If in doubt, contact a Core Group Member who will try to put you in touch with a member who has used their services before.  The LETS system, like any other directory, cannot take responsibility for the quality of what is on offer, so if in doubt, check it out first.  If you have a problem and are unable to reach agreement, contact a Core Group Member.

Question 8: What if I'm not satisfied with someone's work?

A LETS usually offers all kinds of things you just couldn't get in the shops or through Yellow Pages (a 'Granny' for the children, ironing, lawn mowing, etc.) There may be jobs around the home you don't like doing, which are being offered by someone on LETS. Use the time this saves you to do something you prefer.
Offer goods on LETS, or earn credits by offering the use of equipment which others might not have, such as a washing machine, a computer, video recorder or a tent. If you have money but no spare time, you could exchange cash for Wells and help the system's running costs.

Question 9: I'm working full-time, how could I benefit?

It won't. But if you're really worried you could keep your account balance below zero until you have gained confidence in LETS.

Question 10: Could the system fold? Wouldn't I lose out?

LETS has built-in safeguards. All balances and turnovers are published regularly, and members can also ask to see the current balance and turnover of another members account. They may raise a query if someone has a massive negative balance and not much more turnover. A freeloader would easily be identified, and could eventually lose the benefits of their membership.
If someone goes further and further into debit and seems unable to earn any credits, they can seek advice and support from the LETS Core Group. They may be able to add some more popular services (such as baby sitting) to their repertoire. They can also let other members know that they are very keen to trade through the Directory.

 

Question 11: Couldn't someone run up a huge debit and leave?

Most trading on LETS to date is of an occasional 'social favour' type, which is well below taxable income thresholds. People not within a LETS system do a variety of odd jobs, e.g. repair work for one friend, gardening for another, so they can later call up a baby sitting favour.
If a member is conducting trade on LETS as part of a regular business, any net profits (after deducting business expenses and the personal allowance) are tax deductible in sterling. The amount payable depends on the individual case. Therefore, self-employed traders or shops on LETS must declare in their usual tax returns the LETS they earn in their normal line of trade. It helps if they assign liabilities by charging a percentage in sterling, as with other costs. The welfare benefits rules vary, so get more detailed advice from Letslink U.K. In general income support claimants should ensure they are available for work, and are not trading more than 16 hours a week.

 

Question 12: Is trading on LETS taxable?