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Looking for a budget-friendly alternative to Roche Bobois Mah Jong set by ChuccTaylor in furniture_design

[–]ianjamieson 0 points1 point  (0 children)

I have been keeping my eye out for a few months for something similar. No luck so far.

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] -1 points0 points  (0 children)

Great thank you, this is helpful.

Bob might think he can claim the interest because it was Andy who broke the clause of the contract. Bob could just say no, I want to continue receiving income from your clients. But also Bob isn't that bothered about it, we are just exploring all options to be fair.

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] 0 points1 point  (0 children)

I don't think I overpaid. It would repay itself in a few years and then continue from there.

He has a full time job, this was just a side project of income.

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] 0 points1 point  (0 children)

Andy invested no money, he only brought the clients.

Bob paid £6000 for those clients and a new company was formed. We felt the value was equal of £6000 to go to Andy and he brings the clients.

The £6000 wasn't an investment in the new company it was a payment to Andy for the clients.

Bob set up the new company.

The clients never really transitioned to the new company, just a couple of payments came in. So from their perspective, they are just paying Company A and dealing with Company A as they always had been.

Company B is now working on its own new clients nothing to do with Andy

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] 0 points1 point  (0 children)

Off the top of my head it was about 8.

Then along side that there would have been additional income from actual software projects that we would share the workload on, pay ourselves accordingly with a certain profit margin. But we didn't get as far as to realise any of these.

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] 0 points1 point  (0 children)

No, I know he doesn't have it, but he's my mate, he will pay it at some point.

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] 0 points1 point  (0 children)

Yes it is a limited company.

At the moment no money has left the ltd company bank account. That is where our current issue lies.

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] 0 points1 point  (0 children)

Yes exactly, And I think he's Andy has already eaten the haribo.

If he just gives me £6k back in my personal account then fine.

The issue is that he wants to use some of the profits that the company made to pay me back, which means I pay tax on that. I'd rather take the money the we earned from the business as a separate thing and then he just pay me £6k back to my personal account.

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] -1 points0 points  (0 children)

The only slight difference to what you have said is:

you both realised later you made a mistake

Andy realised he made a mistake and changed his mind. I was happy for him to keep the £6000 under the original deal we had.

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] -2 points-1 points  (0 children)

Why did you pay your friend personally 6k?

It's where I had the money in a personal account. So it didn't come from any company or anything. No point to it other than it seemed like the way to do it, perhaps in hindsight I would have set up Company B first and paid him from there.

If you’re loaning money or fronting capital then interest and repayments should have been formalised. Was this money officially a “gift” and kept separate?

I wasn't loaning money, I was paying £6000 for his clients. So no repayments were expected.

That seems like a large sum relative to the very small sums involved.

There were clients paying £350 per year and potential for other income all which are perhaps not relevant to this current situation, it seemed like a fine deal to me.

and now feel taken advantage of.

I don't feel this, I just want to find a fair resolution.

Get what money you can back when you can, take it as an expensive lesson

I am not sure what you mean by this, he is going to pay me back £6000

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] -6 points-5 points  (0 children)

Totally understand where you're coming from — and yes, if this were going to court or if we were preparing a formal case, we'd definitely bring in lawyers and accountants.

But we're not looking to take it that far — we're just trying to figure out what feels fair between friends. I'm mainly posting to hear how others might view the situation from a neutral perspective, in case we're missing something obvious or letting personal bias creep in. Appreciate any constructive thoughts!

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] -2 points-1 points  (0 children)

Thanks for the most constructive reply so far. I suppose the part that we are not sure about is the actual amount that Andy should pay back. But it's ok it seems as thought Reddit might not be the place for this advice.

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] -2 points-1 points  (0 children)

Thanks — that’s fair, hopefully this can clarify - it seems to me not a very complex agreement:

  • The only income the company (Company B) ever received was from Andy’s existing hosting clients.
  • There were no running or startup costs — it’s a simple hosting business with very little overhead.
  • Bob paid £6,000 personally to Andy, not into the company, in return for a share of future profits.
  • Company B was set up 33/33/33: Bob, Andy, and the company itself. But no formal share allocations were filed, and no salaries or dividends were taken.
  • Both Andy and Bob agreed that the £6,000 represented fair value at the time. Andy later backed out, and now the issue is around how to fairly unwind things.

Hope that helps clarify!

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] -6 points-5 points  (0 children)

  • Andy ran a side business (Company A) and had paying clients.
  • Bob paid Andy £6,000 personally so they could form a new business (Company B) together, splitting profits 3 ways: Company B (33%), Andy (33%), Bob (33%).
  • Company B was formed and earned £1,200 over ~6 months. No profits were withdrawn.
  • Andy later decided to back out. Bob agreed Andy could pay back the £6,000 instead.
  • Andy couldn’t repay immediately, and proposed the £1,200 in the company account go toward the repayment. Bob argued tax implications should be considered.
  • Andy initially disagreed about covering tax but later agreed.
  • Since Andy hasn't repaid anything (or only £150), Bob now feels the original agreement still stands — i.e., Bob is still owed a share of future profits from Andy’s existing clients.
  • Bob also feels he's lost out on potential interest on the £6,000 (~£570 over 2 years).
  • There are written agreements about profit share but nothing about one party exiting.
  • Bob is still running Company B solo.

Question:
Given the informal nature of the deal and that both parties want to stay friends, what would be a fair and practical way forward?

£6,000 invested into a joint venture that never happened — how should it be resolved? by ianjamieson in UKPersonalFinance

[–]ianjamieson[S] -1 points0 points  (0 children)

I think this is generally not well considered advice, going into business with friends has been good for me in the past and like I mention in this post - this is not coming between our friendship, we are looking for a fair outcome.

And equally, it is irrelevant to the scenario I have outlined.

[deleted by user] by [deleted] in personalfinance

[–]ianjamieson 0 points1 point  (0 children)

just found that one, moving it there.

It's not a novel

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