Setting up business with no agreement

Thunderchild2015

Hello everyone,
I'm not sure if this is the correct place to post this, but I appeal to your wisdom and advice regarding a situation I have.

Its quite detailed, so I'll try and keep it brief.

Since November 2019, I worked for an R&D sales company, which claimed back corporation tax for development activities for SME UK limited companies.  I realised I had a natural ability for it, and consistently was the 'biggest hitter' in the company for the next year.  In January 2021, I was forced to quit due to Covid19 related circumstances, within the workplace and took a temporary job with a smaller claims/marriage/PPI tax company.  This smaller company only pays minimum wage, and just over 2 weeks ago I was offered a position with another larger R&D firm, who had heard of my track record.

When I went to give my notice to the manager of the PPI/marriage tax company, they have turned around and offered to set up an R&D company with me.  This seemed exciting at the time, and we discussed it over the next week.  I even turned down the larger R&D company, that was offering me £35K+, as they insisted I needed to "be on hand" if we set something up.

My problem arises, as despite me asking them numerous times, they have not given me a written agreement of our terms of business.  I have currently been working for free for them over the past week, giving them information about R&D, telling them how to move forward, creating documents etc - yet they seem reluctant to put anything in writing, and this is setting alarm bells off with me.
Is a written business agreement really necessary if I go into business with them?  Or do you think I could be over reacting?

Many thanks,

P

Marcon

Thunderchild2015 said:

Hello everyone,
I'm not sure if this is the correct place to post this, but I appeal to your wisdom and advice regarding a situation I have.

Its quite detailed, so I'll try and keep it brief.

Since November 2019, I worked for an R&D sales company, which claimed back corporation tax for development activities for SME UK limited companies.  I realised I had a natural ability for it, and consistently was the 'biggest hitter' in the company for the next year.  In January 2021, I was forced to quit due to Covid19 related circumstances, within the workplace and took a temporary job with a smaller claims/marriage/PPI tax company.  This smaller company only pays minimum wage, and just over 2 weeks ago I was offered a position with another larger R&D firm, who had heard of my track record.

When I went to give my notice to the manager of the PPI/marriage tax company, they have turned around and offered to set up an R&D company with me.  This seemed exciting at the time, and we discussed it over the next week.  I even turned down the larger R&D company, that was offering me £35K+, as they insisted I needed to "be on hand" if we set something up.

My problem arises, as despite me asking them numerous times, they have not given me a written agreement of our terms of business.  I have currently been working for free for them over the past week, giving them information about R&D, telling them how to move forward, creating documents etc - yet they seem reluctant to put anything in writing, and this is setting alarm bells off with me.
Is a written business agreement really necessary if I go into business with them?  Or do you think I could be over reacting?

Many thanks,

P

Of course you need a written agreement. At the moment you're just being a handy doormat with no rights.

AskAsk

everything needs to be in writing as otherwise, where is the proof of what had been agreed?

Savvy_Sue

Personally, I'd go back and ask if that job is still open ...

ACG

I agree with the above, I would see if that job is available. 
Failing that, I think you need to talk to your boss and explain you passed up on a good wage for the opportunity of working on something bigger together and that the lack of any sort of contract is a little concerning especially when you are helping with the set up of the business. Assuming they are making all the right noises (ie they want to still move forward), ask to book in another meeting when you can agree some sort of future steps, splits etc and at that point draw up some notes/minutes and both sign them.

The problem you have however is that this business could be a new business, a part of the existing business a subsidiary etc, so you could find that any agreements you make are worthless if the owner decides to just pump you for information and then go it alone. 

moneysavinghero

they have turned around and offered to set up an R&D company with me

Does not seem like they are doing what you are saying. They seem to just want you as an employee. So why not take the job from the company that actually know what they are doing rather than do all the work for a company that know nothing about R&D and will just take the profits you create for them.