All sorted now
Guy I bought I phone from nearly a year and a half ago, was decent enough to make contact with me via ebay and initially tried a remote delete as per Apples website, which didn't work, so then was good enough to trust me with his Apple/Icloud ID and password for a limited period before he changed his password, which enabled me to do a proper reset and set up on for my daughter.
He could have told me to jog on, but fair play and thanks to him for helping me.
The phone worked fine before we updated the IOS and we were able to set up a Apple ID for the store and worked fine for over a year. It's only when we did the IOS update there seemed to be something much deeper in apples software/phone config and ICloud ID that caused the problem. But sorted now thanks for previous owner of phone.