Business buy out advice

[Peasgood]

Sounds like a reasonable starting point.

Best of luck.

[WorcsWuss]

IMO, £350, is way too much, I pay £200 including VAT and that includes vat returns, payroll, tax returns and working family tax credit etc.

 

Also I'm not sure it's a great idea for her to become involved in YOUR business, if I were you I'd really try to get clean break.

 

I'm with the huck on this one.

Sounds like a very complex arrangement, cryptic even.

Also sounds like huge potential for arguments into the future...

Presumably the fact that you're still considering means you're not 100% sure about ANY 'deal' and long term involvement with your sister in law....?

Would I be right if I said the only thing holding you back from paying out and making a clean break is financing it?

 

A good point was made.... What would your brother have done in your situation?

Would he commit to going into business with your partner? Would your sister in law, being an accountant, let him?

[Mike Dempsey]

Big mistake mate. I do my own accounts with Sage and I am self employed. Its not very difficult and a local college may even have some one day courses on it. £350 pcm is far too much for what will amount to not more than 5 or 6 hours work a month. You have to be dispassionate about this and think with your head and not your heart. Your main priority is you and your family, and their future. Your sil will always outearn you as an accountant and in time you will regret this decision and it will knaw away at you till you really resent her. As other posters have said here there is no business now. You are back at being a self employed worker with some assets which were jointly owned by you and your late brother. Have them independently valued and offer her half the value, maybe you could pay her out of your earnings over a 5 year period. The money could go into a trust for your niece and earn her some interest. Get this agreement written up by a solicitor so it is legally binding and she cant change her mind about it. This will allow you to continue to earn money and have all the equipment and plant to do it with. She wont have any control over you and if you want to pack it all in sometime , sell all the gear and pay of the money to your niece with some of the proceeds. I am sorry if this sounds a little harsh but money/finance has ruined lots of relationships in families and it is better to get independent legal advice at the cost of a few quid than follow her proposals and regret it for years.

 

Mike

Edited May 15, 2013 by Mike Dempsey
spelling

[TGB]

£350 PCM… does that include NI or is that plus NI? What happens when you have a slack period but are still commited to paying you SIL that sum.

 

Also, with others here, dissolve it now and start over. Your SIL via your niece will still get her cut. And you won't beholden to her for £350 a month, nor a redundancy pay-out if it all goes honey-shaped. Plus won't your niece be better of getting the cash now and having it invested for the future? Than having it later, when inflation has got the better of it. And as has already been said, £4,200 a year for doing tax & vat - can you and your own family really afford it? Your brother might have been earning more but he was doing half the working hours per week.

 

Not all your questions answered but have a gander at the calculator at the bottom of this page: http://www.crunch.co.uk/?gclid=CIjhhtPGmrcCFXIPtAodCGcAWQ

 

So can you afford the £4,200 a year?

Edited May 16, 2013 by TGB

[Peasgood]

Sounds like a reasonable starting point.

Best of luck.

I think the other posters made more sense than me.

What I meant was that it was a sensible starting point for negotiating from, although it doesn't read like that.

 

£350 is a lot of money for little work.

If i could do that for 4 people I would be on a lot more wage than I am now, and for a fraction of the hours.

[likeitorlumpit]

my vote is for clean break

value the equipment/stock, look at the list of regular customers your brother has helped establish. Think how hard it would be to generate this again. (this is the hard one) There must be a value to this.

Now- halve the total and that gives his worth to the business the day before he died..

Pay, or promise to pay this amount which then means you have bought the business from the owners.

Get another book keeper or learn to do it yourself until you start employing new staff. As then your book keeping problems will probably need to move a bit more professional.

This seems to me a more fair way rather than just saying that the business has no value other than the value of its physical assets. After all, your niece is a blood relative and you presumably wouldn't want to spoil that relationship.

Above all, be fair.