Just Spie really, I'm a programmer not a businessman
what would you consider a fair percentage
half of the new company. He's providing capital and trading history, you are doing all the work. Think of it like dragons den.
Also in terms of outgoings, what should I consider on his end. Will he be spending that much when it comes to taxes and delivery on each item, or is he trying to barter me into less earnings and a bigger cut for himself?
You're really not thinking about about this in terms of a company, it's not you and him, it's his shop company and your (yours and his) web company.
He won't be spending anything at all on delivery, the web company will, and you'd best hope that's covered by the money you've taken for selling the goods or you've no future at all. There's no tax with profits, vat is irrelevant.
Consider what happens to other costs, office space, electricity, web hosting, payment service fees, accounting - there's a lot. I's suggest his existing company covers those and make a margin on whatever stock is sold from company 1 to company 2.
If you go down this path don't expect to be paid for a while, can you live without a wage for 6 months? A year?
If you need a wage you need one, but any terms you negotiate on that basis will suck.
Maybe you should take professional advice - your bank might even have a small business adviser.
