need help re: self -employment/taking over a business(4 Posts)
its a bit long so sorry...my mum set up a shop i run it, she takes no profit, not a penny. i run the shop 6 days a week do the books write cheques for her to sign, keep on top of accounts, no one else but me.
she is in financial difficulty-not through shop, although it does have out-standing monies on accounts, she cares for my disabled brother who has been in and out of hospice/hospitals and has been unable to do her bank shift work as a nurse, coupled with her ex who has left her high and dry money wise she's considering bankruptcy. shes had an iva but she's still strapped, and after being with her today is so depressed has admitted to wanting to kill herself to get away from it all.
i am wanting advice on how we could go about putting the business in my name so as not to lose it as i have worked my backside off to turn it around. is there anyone who can offer advice as to how to do this and just general other questions??
im also in need of desperate advice re: tax as after reading another thread on here ive been told by tax office im self-employed as im classed as business partner but now not sure this is true??
sorry its so long i just need some advcie please!
Im not sure I can help you much but from what I can tell, you should be classed as employed as you are not named as a business partner. That would need to be in writting.
Have you tried making an appt with an accountant for advice re transferring business? Usually, you get the first appt free as they are trying to get your business. If they chase you to sign a contract, you can always say that you have decided to close.
HTH a bit.
I would imagine you will need to buy her out. If it is making little money this wouldn't necessarily cost a huge amount. (although may be a factor in if it's worth doing.) If she does declare bankruptcy the price will need to be acceptable to the reciever as she cannot dispose of assets to family members at a preferential rate to the detriment of creditors.
Sorry, but the fact you've been running it doesn't count for anything unless you have something on paper regarding ownership. Can you afford to take on the inherent potential risk of your own business? You may be better off starting again once she has declared bankrupt by buying assets of "shop", as then you are not taking on debts.
You really need to get specialist advice on this. Does your mum have an accountant? Oh and is the shop set-up as a limited company or as a "sole-trader"?
There are a lot of points in here, too many. Try to stand back and make decisions based on business, not emotion. Try to work out which points are most important / most urgent and make decisions about them first and then the rest will follow.
Is the business profitable? I know that you have emotionally-invested in it ("worked my backside off") but is it / will it be profitable enough?
Do you really want to continue it, or is it just safety in continuing to do what you have always done?
Running a shop is time consuming: would you be better off (financially and emotionally) taking a job where you can turn up, do the hours and then go home. Do you have the time for the shop and your Mum and your brother?
Is your Mum getting all the support / benefits she is entitled to?
Go and see Citizens Advice. Persuade your Mum to speak to Samaritans.
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