The K M Links Game - November 2024 Week...
Quizzes & Puzzles1 min ago
Business Partnership
7 Answers
I went into a business partnership 6 years ago with a friend. Over the last couple of years and particularly this year he has become extremely unreliable and is always away sick - so much so that in the last 3 months he had only worked a handful of days.
The main problem is than when he doesn't work I need to call on staff to cover for his absences. However, he still expects to receive his full pay because "he has bills to pay". We do not really make enough money to pay him and staff and it is draining our resources rapidly. Meanwhile, I am also covering his hours and not receiving any pay at all (he is supposed to work more hours and than me and I take less out of the business).
He has a back problem which doesn't seem to be able to be resolved by the Drs. This problem seems to miraculously disappear at weekends though and he is always well enough to go away for foreign holidays! I also suspect that he has been picking his wife up from uni each evening on the days he is off sick, although I don't have any concrete proof.
I really want to get out of the partnership and to be honest wish I had never got into it in the first place. I have raised the subject of him taking over the business and then perhaps employing me (this would be with a view to me eventually resigning and obtaining a job elsewhere). I wouldn't want anything out of it (there's not much anyway!), but he's not interested - he says as I do all the paperwork and accounts, etc., he would then have to pay me to do that and it would cost him more. I suggested he would take over this role, but he said he's not interested.
Stupidly we haven't got a partnership agreement, but the business is debt free and currently in profit (just), so my question is can I just walk away and hand it over to him? I feel he's taking me for a fool at the moment.
Thanks in anticipation for any advice.
The main problem is than when he doesn't work I need to call on staff to cover for his absences. However, he still expects to receive his full pay because "he has bills to pay". We do not really make enough money to pay him and staff and it is draining our resources rapidly. Meanwhile, I am also covering his hours and not receiving any pay at all (he is supposed to work more hours and than me and I take less out of the business).
He has a back problem which doesn't seem to be able to be resolved by the Drs. This problem seems to miraculously disappear at weekends though and he is always well enough to go away for foreign holidays! I also suspect that he has been picking his wife up from uni each evening on the days he is off sick, although I don't have any concrete proof.
I really want to get out of the partnership and to be honest wish I had never got into it in the first place. I have raised the subject of him taking over the business and then perhaps employing me (this would be with a view to me eventually resigning and obtaining a job elsewhere). I wouldn't want anything out of it (there's not much anyway!), but he's not interested - he says as I do all the paperwork and accounts, etc., he would then have to pay me to do that and it would cost him more. I suggested he would take over this role, but he said he's not interested.
Stupidly we haven't got a partnership agreement, but the business is debt free and currently in profit (just), so my question is can I just walk away and hand it over to him? I feel he's taking me for a fool at the moment.
Thanks in anticipation for any advice.
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Yes registered with HMRC as a partnership, so it's just a question of letting them know? It could be a good little business for a sole trader I think and I wouldn't mind taking it, but there is no way he's going to give his share up, he's onto a good thing at the moment! Financially I would need to get another job first but I don't want to take anything out of the business.
I don't know if he's capable of running it on his own because I don't know how genuine his sickness is really and he's never had anything to do with the financial side of things. I know it will cause bad feeling if I walk away because a lot of people are sympathetic to his "illness" but they don't know the full story and I think for my own sanity I need to get out.
Thanks for your help.
I don't know if he's capable of running it on his own because I don't know how genuine his sickness is really and he's never had anything to do with the financial side of things. I know it will cause bad feeling if I walk away because a lot of people are sympathetic to his "illness" but they don't know the full story and I think for my own sanity I need to get out.
Thanks for your help.
Add up the total number of hours you work every week and add to his total.
Now divide that total into the profits/ takings.
This will give an hourly rate. Ie. If you work 30 hrs and he works 10, you receive 3 times as much as him.
Its transparent and fair and it bucks up the ideas of slackers and takers. Unfortunately, you've lumbered yourself with one of the above.
Now divide that total into the profits/ takings.
This will give an hourly rate. Ie. If you work 30 hrs and he works 10, you receive 3 times as much as him.
Its transparent and fair and it bucks up the ideas of slackers and takers. Unfortunately, you've lumbered yourself with one of the above.
Thanks for the replies - I now feel more positive about what I am going to have to do. I know it will cause bad feeling because there are certain people who genuinely believe he is ill - and don't get me wrong I would be very sympathetic if the evidence pointed to the fact that he was actually ill, but I've never heard of a week only condition which clears at weekends or for two week holidays in Egypt!
I will certainly work out the hourly rate thing - it shouldn't be too difficult, in the last 3 weeks he's only worked 12 hours and I've worked 100+.
I will certainly work out the hourly rate thing - it shouldn't be too difficult, in the last 3 weeks he's only worked 12 hours and I've worked 100+.
Autumn leaves, it makes no real difference whether his illness is genuine or not. You don't have to tell anyone that you don't believe him. The fact is, you cannot carry it all on your own. No need to suggest he's putting it on to anyone else. He is obviously not well enough to continue. Not your fault.
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