can she claim?

Dunroamin

santacruz wrote: »

Surely profit means after wages have been paid? (once the business has the horses and up and running)
Even if they break even they've made a wage for themselves. Seems good to me.

If that's what they mean then fine - however, I somewhat doubt it. That's the way a business person means by profit, not what someone who's self employed normally means.

Perhaps the OP could clarify?

waileywoowoo

I apologise for my late reply and thank you guys for all your responses and thoughts.
The livery yard does have the possibility of pulling in a good income for both the girls however the rent for the place and its facilities are extortionate - though the farmer has given them 3 months free to get going.
The girls have worked out other ways of pulling in extra income such as renting out certain facilities per hour and have even got a small shop up and running there but at the end of the day each of the girls will only recieve 20% each of their profits and the farmer gets 60%.
I know most people would run a mile but we live in the Scottish Highlands and work is hard to come by, especially work you would enjoy doing. They're determined to make this work but could have done with some help, they have applied to the Princes trust but it's hard to get so we'll have to keep our fingers crossed.
In the mean time we'll help to support her and can pay her expenses until the business pays a wage.

I kind of knew there were no benefits available to her but had hoped that maybe I was wrong.

Thanks again for all your responses and help.

[Deleted User]

sounds to me like they will effectively be working for the farmer,they do all the graft and he gets a 60% cut,i wouldnt touch something like this with a bargepole

Dunroamin

He charges an extortionate rent and also takes 60% of the profit - he's not daft, is he?

bestpud

There's not much chance of work but the farmer can manage to take 60%...

Seems there is opportunities for some!

Seriously, that isn't sustainable, is it?

Maybe they need to get their heads out the clouds and just find jobs? Dream jobs can come later when they are less wet behind the ears and have some life experience and money behind them!

I can't believe you're encouraging this tbh!

bestpud

Dunroamin wrote: »

He charges an extortionate rent and also takes 60% of the profit - he's not daft, is he?

No but I fear they are!

I could understand how naive young adults could be daft enough to fall for this but the parents have too! And they're going to support the girls (and the farmer) financially!

I fear this is doomed as they clearly don't have half a business brain between them! Only one who does is the farmer!

faerie~spangles

waileywoowoo wrote: »

My daughter is 21. She has just finished 3 years at equestrian college and she and a friend have just opened up a livery yard. The problem is that until the yard has got horses in they won't be earning anything and even when they do have horses in their profit is gonna be minimal. In the mean time we are supporting her any way we can - just her bus fare is extortionate because we live in the highlands and the yard is a long way away. But it would be helpful if there were some benefits that she was able to claim just to help her manage to live.
I've looked on websites but as far as I can see there is nothing available.
Could someone offer any advice.

Thanks.

No horses?


She could offer her services elsewhere.

BigAunty

waileywoowoo wrote: »

...
The girls have worked out other ways of pulling in extra income such as renting out certain facilities per hour and have even got a small shop up and running there but at the end of the day each of the girls will only recieve 20% each of their profits and the farmer gets 60%.
..

...

What does their business plan say about turnover, profit, business expenses, cash flow and so on? Nobody should go into business without producing a business plan - this helps to plan for success instead of failure.

They should take themselves over to the Scottish Enterprise and Business Gateway sites but I fear the horse has already bolted on this - they've entered into a business arrangement without any planning and they've been royally shafted. They should look at the Business Link website, too, as though it's probably aimed at England/Wales, it will still have handy info on business plans and a grant/loan/finance section.

I'm with the other posters on this - not only is the farmer stiffing them with extortionate rent, he's also taking the majority of their profits, too! He's both taking rent and a cut of their turnover, a double extraction, hitting them much higher than other businesses based on renting out land/facilities who would only charge rent. Sheesh.

I don't know any kind of business that functions by handing over the majority of their income to the landlord!! This is just such a bad business arrangement it's untrue. It's worse than feudal.

The landlord is passively receiving the majority of their profits without lifting a finger - how are the girls supposed to live on 20% of profit when they could have had more than double this each? How can they reinvest in their business and grow it if most of their income is swallowed by the landlord? They take on all the graft and risk, the landlord takes all the reward. Mental.

I hope if they have a contract, they had it reviewed by a legal expert in business contracts. I think if they draw up a business plan now, they would see that their business would have been completely unfeasible and not have put their heart and soul into such a corrupt business model.

BigAunty

santacruz wrote: »

Surely profit means after wages have been paid? (once the business has the horses and up and running)
Even if they break even they've made a wage for themselves. Seems good to me.

Absolutely not.

The self employed don't pay themselves 'wages' or a 'salary' as such. They make drawings from their profit. They might have a notional salary advised by their accountant in order to pay the minimum of NI to keep their contributions towards a state pension but that's what it is - notional, and if they don't have any income, they can't meet this.

So, no, they can't take x out of the business income as a salary and tell the farmer he can have 60% after they've paid themselves.

If they have a crude arrangement with the farmer to hand over 60% of their net profit, then that's what they are obliged to do, they can't invent a salary to try and reduce this. 60% of profit means turnover less legitimate business expenses like horse feed, business travel, stock and so on.

paddedjohn

OP, can you clarify please, is the 60% cut of the profits in lieu of rent? Is the 60% cut from all their business or just from the shop?