Helping out a family member

[alto1]

I've given large amounts of money to a family member over the years to help with large bills, periods of unemployment etc.

Her financial situation isn't improving. She runs a small business: would it make more sense for me to put money directly into her business? At the moment everything I give her comes out of taxed inome - is that the most sensible way of doing it?

As you can tell I really know nothing about finance - any advice will be welcome.

Taxed income - sorry for typo

stop giving her money unless you are happy to throw it away. If she cannot run her own finances she is unlikely to make a success of a small business.

sorry.

The business is successful but doesn't make enough to support a family.

I suppose that if you invested in her business directly, then you might be able to be classed as a partner in the business, then you would share in profits and losses. Don't know if you are talking about sums of money large enough to make you a partner.

I also have to question why you want to invest in a business that is successful but not enough to support a family. Is this because your friend is extravagant with spending money or the business doesn't turn over enough revenue. Perhaps the business needs a revamp rather than your investment, e.g. Cost cutting, new lines of business, advertising campaigns.

Also are there any benefits that your friend migh be entitled to if she doesn't have enough money to support a family.

Thanks - I suspect the business isn't turning over enough. She had to have time off through illness (hers and family's) too. They used to get tax credits but don't seem to any more. And they have always had problems managing their money.

I've given several thousand and another family member has given her a lot more. To be honest there's no sign that it's done any good.

I know nothing about business but this is more than a temporary bad patch.

I wondered if I could claim back some tax on the money I put into the business, leaving more for her?

bump