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Oct 31, 2012 23:06:17 GMT
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I know this is a car forum but I'm needing some pointers on where I can get some advice.
I'm currently employed PAYE but I would like to become a partner in the firm that I work for with the view to taking over the running of the company in the future.
So I'm looking for info on how I can do this as I'd like to get all the info I need before approaching the gaffer.
Cheers
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Oct 31, 2012 23:21:59 GMT
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Has a partnership been offered or hinted that available ?
An accountant will be able to advise about partnerships. Maybe Citizens Advise have access to an accountant for basic, free, advice. Partnership is a legally binding agreement so you will probably have to get a solicitor involved. Did you realise if you become a partner then you become responsible for the other partner(s) debts as well if they "do a bunk" ? It's not like being a director in a limited company where you can have limited liability. Somehting to think very carefully about. Also will it be a free partnership of will you have to buy into the business ? If buy in then if a sucessful business then it could involve a substancial investment by yourself. For example to become a partner in a doctors practice having to pay £250,000 is not uncommon !
Good luck.
paul H
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Oct 31, 2012 23:38:55 GMT
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It's a limited company I work for so a directorship might be what I'm looking at. It has been hinted at very heavily over the last few months. The boss has kind of lost his mojo and is looking for somebody to take over, he's not looking for any financial input just somebody to take over the running of the show.
The job I've got really suits me as the hours are flexible and can be at home for the kids when required unlike any other firm locally doing the same job so I'm kind of keen to stay put but I don't want to take on the responsability of running jobs etc without the recognition of being a director or the likes
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phil73
Part of things
Posts: 122 
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If it's a company then you need to understand what your new role will entail. If it is a directorship, then you need to be aware of the obligtions of directors under law, and also any conditions that might surround the appointing and removal of the directors by shareholders. Be careful, though; the term "director" is thrown around as a position within companies often without being the legal office of director. The status of being a director should be of lesser importance to you than the additional legal responsibilities you will have if the shareholder(s) vote you in as a director.
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I'd say sit down and have a good talk with your boss is the first thing to do. What about the other directors - it's rare to just have one. Do the other directors feel the same as your boss.
Paul H
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If it's a company then you need to understand what your new role will entail. If it is a directorship, then you need to be aware of the obligtions of directors under law, and also any conditions that might surround the appointing and removal of the directors by shareholders. Be careful, though; the term "director" is thrown around as a position within companies often without being the legal office of director. The status of being a director should be of lesser importance to you than the additional legal responsibilities you will have if the shareholder(s) vote you in as a director. This  be aware that you will have to fill in a tax self assessment form, whether your on PAYE or not! |
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I'd say sit down and have a good talk with your boss is the first thing to do. What about the other directors - it's rare to just have one. Do the other directors feel the same as your boss. Paul H I'd agree with this. Also, I think you need to take a look at the different business/entity types so that when asking for advice or speaking to a solicitor, you aren't led astray by using an incorrect term- You used the words 'firm', 'partner' and 'company', which could be a bit misleading. Although you've established that we are talking about a limited company, it's worth reading and understanding the differences between at least sole traders, unincorporated partnerships, LLPs and limited companies to get an idea of where it would put you in terms of responsibilities and legal obligations. I have a feeling that it isn't going to be as simple as you think but could be a great opportunity  |
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...proper medallion man chest wig motoring. |
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Thankyou very much for all your advice, I've got a lot of thinking ahead of me :-D
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MiataMark
Club Retro Rides Member
Posts: 2,971
Club RR Member Number: 29
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Business advice pointersMiataMark
@garra
Club Retro Rides Member 29
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Get some advice from an accountant, most will do an initial free consultation. In terms of self-assessment it's not that difficult or an accountant will do it for under £100 anyway. Presumably the company employs/has an accountant, talk to them.
I think if you're a director but just being paid there isn't much difference, the difference comes with dividends or directors loans. There are legal implications and responsibilities that you need to be aware of though.
Don't ignore talking to HMRC they can be very helpful and there is a lot of info on their website.
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1990 Mazda MX-52012 BMW 118i (170bhp) - white appliance 2011 Land Rover Freelander 2 TD4 2003 Land Rover Discovery II TD52007 Alfa Romeo 159 Sportwagon JTDm
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phil73
Part of things
Posts: 122
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If it's a company check out whether its annual returns etc are up to date (see to ensure you don't end up shouldering responsibility for others' negligence or oversight. A variety of reports are available via Companies House and the staff are very helpful. |
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Definitely be careful before getting involved with a lot of personal liability. I don't want to put a dampener on things (it could be a great opportunity) but I've worked in an accounting capacity in the automotive sector and seen similar 'opportunities' and the results. Everything mentioned so far is quite right. Buying in is known as 'Good Will' it's not buying anything tangible but investing in a business in lieu of its other value; existing customer base, reputation etc.
Do have a look at Companies House - they also prove accounting records, although not in great detail. If there is a serious offer on the table you need to get hold of the company accounts (monthly management accounts too if possible as they will be detailed). Have them looked at and pay if needs be. This is a dashboard and will tell you how the company is doing. From my experience things can look good on the surface but with things lurking underneath.
Think about attacking it in a different way - is it worth doing it in stages? Can you take a promotion without the liability of Directorship? Becoming senior management with all the associated benefits is a whole lot less stressful, giving the chance to walk before running. You could still probably regulate your hours at this point but it's definitely harder to do so at Director level.
Aside from the possible difficulties, well done for having the balls to seriously consider it.
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91 Citroen BX Diesel Estate (on the road)
85 Merc 200T Estate
83 Peugeot 205 (on the road)
61 Mini Convertible (on the road)
91 Ford Transit (on the road)
77 Mk1 Transit
60 Rover P4 100 (on the road)
Various Moggies/Minis.
Plus several others...
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Just one more thing from me..
Be incredibly careful what you sign on behalf of the company as a contract (for a credit account, for example) can strip away any limited liability you have as a director. My job essentially comes down to suing people on behalf of my employer when they default on payment and a large proportion of that is using personal guarantees. If my company successfully get a CCJ against you individually I can instruct for it to be enforced by bailiffs, by doing a charging order against your house, or ultimately, bankruptcy. All for a debt incurred by the company you're a director of that you may not have even been aware of.
I'm actually quite nice outside of work.
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...proper medallion man chest wig motoring. |
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andyf
South West
Posts: 415
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One other thing not yet mentioned (unless I missed it) is that if it is a limited company you will still be on PAYE anyway because technically you will still be an employee.
The important thing as everyone else has said is get some advice. Don`t necessarily be put off by everything there are many good points to being a director (I am one), but just go into it with your eyes open.
Good luck.
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1980 Triumph TR7.
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Andy I'm glad you mentioned the paye thing as I had wondered about that
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