How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask UKSolicitorJA Your Own Question
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 8011
Experience:  English solicitor with over 12 years experience
Type Your Law Question Here...
UKSolicitorJA is online now

I have been running a successful hair salon with an informal

This answer was rated:

Hi, I have been running a successful hair salon with an informal partnership for the last 9 years we employ 1 member of staff currently on maternity leave . last year my partner decided to leave she was aware of the amount of cash in the bank (less than £1,000 ), she agreed to stay at the salon as I was pregnant until I had the baby in January 2020 she then changed her leaving date to the new tax year I April 2020 ,as she was taking son a different career she said she was happy to take half of any profits in the business account and leave the salon as it was so I could continue to run the business, then we got hit by covid 19 and had to temporarily close the salon, since then we have received the small business fund grant issued by the government of £10,000 pound which is in the joint business account, I received a message last night to say my partner is going to withdraw £5,000 as that's her half of the assets, and remove her name from the bank account, my worry is we dont know when the salon can re open due to Corona Virus , I dont know if this small business grant is an asset she can use for personal use , I was under the impression it's to pay all the business liabilities untill the salon can re open
JA: What state are you in? And have you consulted a local attorney?
Customer: We are in England UK
JA: Has anything been officially filed? If so, what?
Customer: No
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Are you uk based
Customer: replied 1 year ago.
No we have took no legal advice, because her demands were only issued yesterday

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 1 year ago.
Please continue, I'm desperate for any advice


I agree with you, the grant is not an asset of the business, it is to be used for ongoing business costs and her taking 50% of the grant monies for her personal use is in breach of the terms of the grant. See here: "This funding is being made available to help small, rural, retail, leisure and hospitality businesses with their ongoing business costs in recognition of the disruption caused by COVID-19. "

All the best. Please click on 5 stars

UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 8011
Experience: English solicitor with over 12 years experience
UKSolicitorJA and 4 other Law Specialists are ready to help you
Customer: replied 1 year ago.
Thankyou for your previous advice ,its very reassuring.
Could you advise the best way of this splitting this informal partnership. I am aware she is entitled to a half share of profits in the business account that is not an issue for me ,but she wants to sell her half of the business before the 20th june 2020 . I dont want a new business partner especially one whom I dont know or know of there expertise .
The lease for continuing the business is renewable on the 20th june 2020 which is a very limited time for to get everything in place so so can continue to run the salon when the covid 19 restrictions are lifted , I have told her she is welcome to take 50% of the assets in the salon ie : chairs hairdyers scissors as I believe she will be taking 50% of the clients with her and continuing to do some mobile hairdressing in line with her new position of gym instructor .

Yes, a 50% split of the assets is in order. Perhaps you may offer to buy her share out so that you retain the fixtures and fittings and pay for this from the grant funds as you will continue operating the business after buying her out.

All the best

Customer: replied 1 year ago.
Hi sorry I could do with a bit more additional advice ,my accountant has drawn up the final accounts to dissolve the partnership, but he has added the £10,000 small business fund grant to our profits , do you do client telephone conversations? Time is of the essence.

You may ask your accountant why he has done that and point out the governmental guidance.

I am afraid I cannot speak on the phone.

All the best

Customer: replied 1 year ago.
Hi ,last night my business partner attempted to withdraw £5000 from the joint business account ,the bank stopped this transaction, this morning my business partner has visited the bank which holds the business account and withdrew the £5000 and had it transferred her her personal account, I have not signed any documents which the accountant had drawn up as they had included the small business grant fund ,which I disputed by email to herself and to the accountant ,any further advice would be amazing
Customer: replied 1 year ago.
It seems the partnership is over she sent an email stating it had been dissolved on the 10th june 2020 at 10am and ,withdrew her half of all the money in business which included the 10,000 small business fund grant ,at 2PM using the banks instore branch ,therefore by passing the stops put on the online and telephone banking to stop such action she also paid off all the utilities and outstanding debts before she took her share ,no idea how the business will proceed now

Have you contacted her about this?

Customer: replied 1 year ago.
she said she has done nothing illegal the accountant agreed it was the quickest way ,although she wants me me sign a letter to agree I am solely responsible for the PAYE bill ,it seems she has also informed all the utilities she has left. As I'm currently on maternity leave I find it hard to believe she can do all this within 2 days without me signing or agreeing to her terms

I have nothing further to add.

Customer: replied 1 year ago.
Great advice thankyou