Business Help Again Please

[mrhairy]

Some of you guys are great and the effort that some went to last time was humbling. So a couple more questions please. If my business partner/fellow Director wants to buy me out by a private agreement. I.e giving me a lump sum every month Do I have to declare it and is it taxable.

Thanks, further setting up a new business and I live in Brighton so can anybody recommend a good Accountant to help me set up and ensure that I can legally operate but that vital things can be included in the businesses like the car, and what Salary or Dividends I should take.

Thanks in advance.

 

[mwrpoole]

Assuming you are effectively selling your shares in the company, then you will be subject to capital gains tax. CGT is payable on the profit you've made so you can deduct any investment you made to start up etc. Like most tax things, a decent accountant will sort this out and you may also qualify for entrepreneurs relief which can help reduce any CGT liability.

 

[Weststander]

Do you really trust them that you will get the instalments, once you relinquish your directorship and shares? I would feel for you if you came back on NSC later on and had been stitched up.

Yes, it is taxable. If re your shares, them a chargeable gain, but you get a generous tax free allowance.
If for the directorship, then possibly redundancy or ex gratia payment. Take legal advice ...ACAS on the phone can offer free advice I think re employment law.

Accountants - the new style firms like Crunch Accounting of Hove, can be much cheaper. Always get a fixed fee quote to cover all aspects.

 

[saafend_seagull]

Some of you guys are great and the effort that some went to last time was humbling. So a couple more questions please. If my business partner/fellow Director wants to buy me out by a private agreement. I.e giving me a lump sum every month Do I have to declare it and is it taxable.

Thanks, further setting up a new business and I live in Brighton so can anybody recommend a good Accountant to help me set up and ensure that I can legally operate but that vital things can be included in the businesses like the car, and what Salary or Dividends I should take.

Thanks in advance.

I just joined one in lewes, nice people here. Knill James.

 

[mrhairy]

Do you really trust them that you will get the instalments, once you relinquish your directorship and shares? I would feel for you if you came back on NSC later on and had been stitched up.

Yes, it is taxable. If re your shares, them a chargeable gain, but you get a generous tax free allowance.
If for the directorship, then possibly redundancy or ex gratia payment. Take legal advice ...ACAS on the phone can offer free advice I think re employment law.

Accountants - the new style firms like Crunch Accounting of Hove, can be much cheaper. Always get a fixed fee quote to cover all aspects.

I agree but I have to do it on trust. There is no capital to give me a lump sum therefore I have to try and appeal to their better nature. I have never shafted him nor would I. It is either trust him or walk away with nothing other than he will take over all debts. Dont think I have a choice, but all the time the business trades dont think he has a lot of choice. Thanks.

 

[Triggaaar]

If my business partner/fellow Director wants to buy me out by a private agreement. I.e giving me a lump sum every month

I agree but I have to do it on trust. There is no capital to give me a lump sum therefore I have to try and appeal to their better nature.

WTF? If he's buying you out, then sign a contract that he's buying you out. It's not relevant whether there's any capital. Don't be a schmuck.

 

[mrhairy]

I will have a contract drawn up but what I meant was there is not any money to be paid a large sum therefore it has to be paid monthly

 

[Triggaaar]

I will have a contract drawn up but what I meant was there is not any money to be paid a large sum therefore it has to be paid monthly

Phew, that's cool, nothing wrong with monthly - that's not doing it on trust though, a contract is a contract.

 

[dragonred]

Mark Carter, Friend-James Accountants in Preston Park - if you want someone who talks in plain English, saves a fortune in the tax you have to pay and who you'd also be happy to have a beer with after, then won't go far wrong giving him a call.