Small business-partner wants me to leave

[CatEatCatWorld]

I have a small business with my ex. He wants me to leave the business and halve the assets (we're talking a few hundred £s not loads) However this will leave me in a precarious position as I claimed the self employed grant last month and I think if you cease trading you have to pay it back? But he's practically forcing me out. Also means I cannot claim the next grant (or can I if I start my own business doing the same thing?) He thinks I'm being unreasonable by saying no, but I've helped build this business up for the last 8 years (actually put more work in than him) so begrudge being forced out.

Sorry i wasn't sure where to post so thought chat was more diverse.

Why would you do that? What’s the benefit to you?

Why would you do that? What’s the benefit to you?

I can only echo the above really - what's the reason you're considering this rather than saying firmly you aren't going to walk away at the moment?

Because hes refusing to work with me, and we're losing customers. Bullying me into it.

Bump. Does anyone know if he can force me out? Or what the grant eligibility is? Tbh I do want to leave and start on my own but theres not much work atm so I could really do with the 2and grant.

Can you get legal advice? Don’t agree to anything!

Dont really have the money for legal advice sadly :( that's why I'm asking here, hoping someone could advise.

What structure is the business? Is it a company, partnership, etc?

Sounds like you would be best to start up in competition but I don’t know how that works affect your grant. Maybe call HMRC and check

Can you divide the assets and both of you continue separately? Some clients would go with you and some with him?

Divide the customers between you equally, agree a no poaching clause, and you each carry on doing what you were but as separate businesses.

Next steps depend on skill sets I think. If one is usually responsible for bringing in new business and the other on execution, then a clean division of the clients and no poaching clause isn't as workable as it would be if you both have equal roles and responsibilities. Sorry OP this sounds like the last thing you need right now, hope you're ok

I think with the grant you need to have filed a tax return for 2018-2019, which you won't have done if you start a new company so you'll be ineligible (I looked into it but I've only been trading since last September so can't claim anything).

It's a gardening business, I would take the majority of customers as he's moved out of the area and doesn't drive. I want to and am planning to start my own business (just applied for a part time college course in plant care etc eek!) But I could really do with this grant as our customer list is quite small now due to the virus, so need to advertise/rebuild as well as buying a few new equipment that ex will be taking (we dont have 2 of everything) It is wrong to refuse to leave just yet? He can do his jobs and I'll do mine. I want to do what's best for me and my girls (who he pays nothing for btw)

Do you have an actual registered business or are you just 2 self employed individuals? If you claimed the self employed grant then it would seem you are not employees of your business but you simply work as a self employed person.

If you are self employed just carry on as you are as individuals. Divide your customers between the two of you.

When you say grant do you mean the money available via the SEISS? If so, (please someone correct me if I am wrong!) the money is specific to you rather than a business. That payment will have been paid to you, based on your personal SA tax return and the money that you earned in the relevant tax years. That money could have come from any number of sources. If you start your own business you will still be trading and will still have to complete a SA tax return like normal. Does that help?

As others have said. If you claimed SEISS that is you as an individual, earning money in a self employed capacity.

You don't have to restrict that to one revenue stream, I don't!!!

So you could do as he suggests and take the clients now. You'd still be eligible for the next SEISS payment as you intend to continue to trade.

I'm guessing you're in a partnership (who are also eligible for SEISS as well as sole traders). The government site requires an intention to continue trading but doesn't specify on what basis, so I would think if you were to continue trading alone it would satisfy the criteria. I'd check with HMRC to be sure though.

So he has left the area and doesn't drive and you will take mosr of the clients. Why is it you who needs to leave the business? Shouldn't he be doing that?

That's what I said Dennis but hes adamant, as it was "his" business to start with (eventhough I set it up, dealt with customers and did the books as well as drove him about. I then joined officially once our youngest started nursery) He just wants it his way. But that's good news about the grant being for me rather than the business. It hopefully means I can leave and start my own. Will ring hmrc tomorrow to double check. Thank you all.