Running a ltd business whilst still employed?

hillway

Free Member
Jul 20, 2011
22
0
Hi all , I have been employed by a well known IT company on there books as a full time employee
whislt also running my own IT consultancy via my own ltd company for 4 months and rendering services to another client via the ltd company.

I just wanted to know if i have acted lawfully .

Im asking this question as the company i have been doing work for via the LTD company somehow found out that i have a " Day job " and am employed somewhere else..they dont seem to be impressed

There is no conflict of interest between the 2 roles and I have fullfilled my contractual obligations though now not working for them they have with held a final payment from my invoice due to this. ?

I will be paying any tax due as both personal and LTD.

I just want to know where i stand legally from all this and any advice you can give for me to get paid up what is due.
 
Im employed as a full time employee of the "IT company " and paid a salary on there books - they pay a wage NI etc. do the tax.

I run a separate IT consultancy via a LTD company and do both at the same time. for this i did the invoice method and had a client until recently they found out i was working as a direct employee for " a large IT organisation " .

the client is simply refusing to pay the final invoice now even though i have completed there work.

Not sure on what steps they are taking ...
 
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Are you 'employed' by this IT company or are you a contractor as you mention an invoice ?

to clarify "Im employed " by this IT company .

I have my own LTD company for which im the director and use this as a consultancy basis .

I wasnt aware there was any wrong doing..but the client has found out that i am employed and a permie for the other IT company so on that basis they are refusing to pay the last invoice even though i have completed the work agreed .

Im not sure how i can address this.? also is this unlawful and in breach of the contracts.
 
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There is no legal or tax impediment to you being employed by more than one company at the same time - having your own Ltd company means you are an employee of that company as well as your day job. The only problem you may have is if your contract of employment with your 'day job' prohibits secondary employment. You should inform them of your situation explaining that there is no conflict of interest (which will be their concern).
As far as your client refusing an invoice, that has nothing to do with your employment status (ie employed by another company) and he is in breach of contract assuming you have executed the conditions of the contract at your end - ie you've provided the goods or service.
Threaten them with a debt collecting agency, that usually sharpens the focus.
 
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From what you have said, you haven't acted unlawfully.

If you have delivered to your (LtdCo) client what they requested without breaching the terms of the agreement to do so, they should pay your invoice.

You say that there is no conflict or confidentiality issue between your employer and your LtdCo client.

You should write to them (recorded delivery) to request payment of the invoice, and give them the opportunity to dispute it, in writing, and within a reasonable time. In practical terms they will then either have to pay the invoice or state that they are not paying because you have not performed your obligations. There are several options at that stage, including a chat over lunch, a solicitors letter, winding up order etc, depending on the strength of the relationship that you have with your client.
 
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If you have a contract with this company and there is no conflict of interest between the two companies and you have completed the work as required then they are obligated to pay. I suspect they are concerned about confidentiality between the two companies. Like the previous replies suggest I would also let you employer know what you are doing before they find out from someone else.
 
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