Taking over a self employment business.? How do we do the assets.

[HowCanThisBeRight]

So my friend has a very small entertainment business who has lost all interest due to unsocial hours etc.and just not being able to fit it in around his day job

I would love to do the same business and have a lot of experience in it and been looking into it for a while.
He has said i can have his stuff.
He would ring hmrc and cancel his self employment. And I'd have to set up my own. Which seems simple

However. How does he transfer his goods to me. Theyre old and not worth much in value.. Maybe 1500 in value. . But they're needed for the business so he's said I can have them.
Does it have to be done thro a solicitor. Or just written between us and signed?
.

He can give the assets to you. He can sell them to you. There is nothing complicated here. No need for a solicitor or any form of written agreement for transferring the goods. He might want to produce an invoice for his accounting records if you pay for these items.

Friend > you - equipment
you > friend - bottle of wine / thank you / cash / etc.

up to him what he does regarding his books
assumes that there is no guarantee / comeback on him ref. quality of items / safety / etc. - if there is any electrical equipment then you will need to have it tested for safety and so forth...

It's electronic equipment. But regularly gets tested.
OK so I'd like to give him something for it even a goodwill gesture. I'll tell him it's up to him if he wants to do an invoice for it.
I just don't want to do anything illegal.
I'll ring hmrc this week to set myself up.. Do they do in the phone or send paperwork??

To do it properly in the eyes of HMRC, he needs to "sell" them to you and provide an invoice. He declares the sale in his final accounts, you declare the purchase in your first accounts. Nice and neat. The price is between you, HMRC won't want to argue as long as it's not something completely stupid.

I'd also want an invoice, even for £1, in case there were problems with friend later on.

It's electronic equipment. But regularly gets tested.

Still get it tested as you will be taking on responsibility for it

Yes I know it needs doing regularly :)
OK ill speak to him about doing an invoice for it. Thank you. :)